Condo Buying 101

Speak to us before you consider buying a condominium in a new project:

Let us register you:

We can register you as a buyer on new condominium projects,  we can assist you with the process of buying a new condominium with an unbiased eye and help you with the ins & outs that you as a buyer should look out for.  We can help you with floor plans, selecting the best unit regarding exposure and location in building and advise if this is the right building for you.

Your Appointment:

We can set up a meeting for you to discuss your preferred suite size and type, details about the building and the variety of amenities being offered. At this meeting, you can short list or select suite(s) and ask any questions you have regarding deposit schedules and amounts, projected dates, and maintenance fees. We can also help guide you with your budget parameters.

Purchase Price:

A question that comes to mind when purchasing a new home is “What does the purchase price actually cover?” Generally speaking, the purchase price covers your suite and installation of your appliances, standard colour selections and HST net of any Home Buyer Rebate (if you qualify for the rebate).

While your suite and appliances are covered in your Purchase Price, there are certain fees and taxes that are not. Provincial and municipal land transfer taxes are extra cost, as well as occupancy fees.

Common Expenses:

Generally common expenses for the first year are budgeted and set by the developer, and are reassessed in the second year at the Annual General Meeting by the Condominium Corporation. Fees are subject to increase as deemed necessary by the Condominium Corporation based on reports from the engineers, and tend to cover maintenance of common elements (elevators, roofs, garages, etc.), security, operations of amenities, concierge and insurance. A portion of your monthly common expenses will also go towards the Reserve Fund, which is used for major repairs or replacement of common elements and assets. Major changes, like a new gym, must be agreed upon by at least 66.66% of owners, but otherwise common expense are budgeted, as determined by engineers retained by the Condominiums Corporation, to cover any wear and tear and normal repairs and replacement to all amenities and common elements. Maintenance and repairs to suites are generally covered by the owner.

Deciding to Purchase:

If you decide to purchase a new condo, the next step is signing your Agreement of Purchase and Sale (APS). Once signed, there is a 10-day cooling period. This 10-day period can be used to assess your financial qualification and receive your mortgage approval. Your first deposit will be due, and you will be required to submit post-dated cheques for the remaining deposits as discussed in the deposit schedule, the deposit schedule varies from project to project. This is also the period that you can review the APS and project documents with your lawyer.

Upon your purchase being finalized, you will receive a copy of all documentation.

Finish Selections:

Once you have purchased your suite, and construction has started, the developer will contact you or your designated representative to set an appointment for your finish selections. You you may be offered prepackaged colour and finish choices  or the builder may offer a la carte standard and upgraded finishes for your selection you may be provided the opportunity to customize your suite including the floor plan.  Presentation Centres offer you the opportunity to touch and see the different options, allowing you to make an informed decision.

Pre-Delivery Inspection (PDI):

This appointment will normally occur a few weeks prior to the Interim Closing.  You will complete a walk-through of your suite, and receive information about property management and how to contact them, the condominium rules, and information about the community and maintenance regulations. Please review your APS for any specifications, upgrades and changes to ensure you selections are installed as you ordered them. The products installed, and any maintenance that can be expected in your home will be explained at this time. At your appointment, you will complete a walk-through with a Customer Care representative and make note of any deficiencies (scratches, nicks, chips, etc.).

At the end of your appointment, you will receive a copy of the PDI form and your Warranty Certificate. Any items you list on the PDI form will be repaired within 30 days. Every effort will be made to repair all deficiencies prior to moving in.

Throughout construction you will receive frequent updates regarding progress and scheduling.

Occupancy:

Prior to the property being registered and title transferred to you, you will be required to take occupancy of your condominium when the suite you purchased is ready for occupancy.  During this period you are required to pay “Interim Occupancy Fees” which are equal to the maintenance fees and taxes the developer is paying.

Condo Board:

As the Condominium Corporation is registered and passed over to the owners of the Condominium, you will have an opportunity to join the Board of Directors. All owners have the option to run for election to the board, and can receive voluntary training through different associations, although training is not necessary.

By explaining the different stages you will encounter beforehand, we hope to offer you comfort and peace of mind throughout your experience purchasing a condo property. Please feel free to contact our team if you have any additional questions.

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