Tips for Buying a New Construction Condominium

GG-author Real Estate

  • Before signing the Agreement of Purchase and Sale, be sure to review it with an experienced real estate or condominium lawyer to ensure you understand it. buying a condominiumMake sure you understand all the hidden extra charges that are contained in most new home Agreements, especially Condominiums.
    • Ask the builder to give you a list of all extra charges provided for in the Agreement.
      • Negotiate a limit or “cap” on these charges to limit your exposure to unexpected costs.
        • Make sure anything that is agreed to verbally by your sales representative is reflected in the Agreement in writing.
          • If you are buying a condominium, review the Disclosure Statement with your Real Estate Lawyer. The disclosure Statement is one of the most important documents you will receive.
            • If you are purchasing a condominium, you have a 10-day “cooling off” period once you receive the disclosure statement. Within this 10-day period, you can cancel provided you supply written notice to your builder.
              • Review the Delayed Occupancy Warranty at the time the purchase agreement is signed. Through this warranty your builder is guaranteeing that your condominium unit will be completed by a mutually agreed upon Occupancy Date, or by an Occupancy Date that has been properly extended.
                • For freehold homes, an Addendum is also included in the Agreement of Purchase and Sale. It provides additional information, as well as your rights concerning delays in construction. It is important to review this document with your Real Estate Lawyer
                  • At the signing of the Agreement of Purchase and Sale, you will be required to provide a deposit for your home or condominium unit.
                    • Ask when you will be contacted to make selections for interior and exterior finishes. Each builder has a different policy for finalizing selections so that construction is not delayed.
                      • Ask your builder who to contact about scheduling your pre-delivery inspection (PDI) and when it will take place. Prepare for the inspection by printing the PDI Checklist, or call Tarion at 1-877-9TARION (1-877-982-7466) to order a free copy.
                        • Ask about the builder’s after sales service policy and who to contact should an issue arise. Ask who to contact in emergencies, too.
                          • Understand the warranty that comes with your new home and what to do if you think you have a claim. Click here to find out what’s covered under warranty or check out the Construction Performance Guidelines on the Tarion Web site)