Are you buying a new condo in Toronto? We understand the frustration that comes with the buying process. It may seem like you’ve found the perfect condo, only to discover hidden fees or hidden details in the fine print. The condo business is booming, and as a result, it seems like there’s a new complex going up in every corner. Most buyers are choosing to purchase a pre-construction condo because of the pricing and benefits of moving into a brand new complex. Throughout this article, we’ll discuss some crucial factors that you’ll need to know when buying a pre-construction condo in Toronto.
Communicate with Your Real Estate Lawyer
After signing the agreement for your new condo, it is crucial to contact your real estate lawyer as soon as possible. Condo law in Ontario allows a ten-day cooling period for you to review the contract, and ensure you have a complete understanding of the details. A real estate lawyer knows all the in and outs of condo contracts, so make sure to ask them for all the details. You must understand what you are buying and also what the builder has the right to do. The condo builder may be able to make crucial changes such as substituting materials for lesser quality ones, altering the floor plan, change colour or textures, or extend closing dates. Discuss all these possible clauses with your real estate lawyer and get a better understanding of the condo owner’s rights in Ontario.
Get to Know the Ontario Condo Act Board of Directors
A board of directors represents the condo owners. It is their job to uphold and force the condo bylaws and condo rules and regulations. The condo board is also responsible for making decisions on building maintenance and finances. Upon purchasing your pre-construction condo, it’s a wise choice to get in touch with the board of directors to be in the loop on the status of your complex.
Take Advantage of the Condominium Authority of Ontario Resources
The sole purpose of the Condominium Authority of Ontario (CAO) is to provide new condo owners with easy to access information so that owners understand their rights and responsibilities. Contact the CAO or visit their website to inform yourself as a new condo owner.
Understand the Condominium Act Forms
For more clarity and understanding of your rights as a condo owner, consult with your real estate lawyer to get a better understanding of the Condominium Act Forms. The Government created these forms for a better understanding of what condo builders can and can’t do. Some of them are mandatory, while others are optional. Review the necessary information for a better understanding of what the builder is eligible to do to your pre-construction condo.
Know the Condo Law in Ontario
Hire a Lawyer that Is Right for The Job
When purchasing a pre-construction condo, you want to work with a lawyer who has experience in these situations. Condominium lawyers that are cheaper tend to miss critical contract details, so be aware of that. Pre-construction condo purchases are not the same as resale purchases, hire a lawyer that understands this.
Review All Documents in the Real Estate Transaction
Real estate transactions in Toronto consist of many valuable documents. Before closing the sale, sit down with your lawyer and review all the transaction documents. Don’t be afraid to ask all your questions, after all this is a big purchase.
Consult a Condo Advisor
For additional support and clarity, it never hurts to contact a condo advisor. These firms often have experienced lawyers on their team who have a great deal of experience with first-time pre-construction condo buyers. It’s a good idea to ask for clarity on things like closing fees, utility hook-ups, and the Tarion warranty.