Frequently Asked Questions
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It is best to hire a lawyer from the start of the pre-construction condo acquisition. A lawyer will assist you in reviewing the Agreement of Purchase and Sale (APS) and other documents that you will need to study and sign throughout the purchase process. Depending on your circumstances, a lawyer’s main purpose will be to assist you save time and money while also helping you comprehend legal concepts and safeguarding you from the financial hazards that come with purchasing a pre-construction apartment. Understanding these crucial legal phrases can be the difference between granting the condo purchase a preferred right and imposing a significant financial burden on the buyer. In brief, invoke
The normal stages required in purchasing a suite at the start of a new condo launch are outlined below. Platinum Agents typically have first-hand knowledge of the top projects and suites.
- Selecting the Project
Choosing the correct project is perhaps one of the most critical components. Consultations with your chosen Real Estate Professional will be required.
- Selecting the Suite
Once you’ve decided on the project, limit down your options for the ideal suite. This will include a study of the floor plan, the view, a range of floor options, the suite price, and evaluating how the suite will fit into your budget.
- Submitting a Suite Reservation Worksheet
Once you’ve decided which suite you want to buy, simply fill out a suite reservation form and submit it to your Platinum Agent. The worksheet will outline the suite you are interested in as well as which floors you might be interested in purchasing that particular layout on. It will also contain your contact details as well as your occupation. Furthermore, your Platinum Agent will request a copy of your ID to ensure that the information on the worksheet is correct.
- Confirmation of Suite Allocation
Your Platinum Agent will notify you of the suite that has been assigned to you. You will schedule an appointment to sign the agreement once you have confirmed your desire to acquire the suite. The suite will be reserved for you till then.
- Signing the Agreement
If the information on your worksheet is correct, the paperwork for the agreement can be produced before you come. Typically, you will sign multiple copies of the same agreement to ensure that all parties have a copy.
- 10 Day Recession Period
You will have a 10-day “Cooling down Period” after signing the agreement. This time period is required by the developer for you to examine your agreement and suite decision. During this time, we recommend that you do the following:
Have your agreement reviewed by a lawyer. A lawyer will go over the agreement with you and point out any difficulties that you should be aware of.
Obtain pre-approval from a mortgage broker. If there are any issues within the first ten days, you will be able to cancel the contract without penalty.
- Deal goes firm & Deposits Cashed
The contract will automatically become firm on the 11th day, and the initial deposit cheque will be cashed.
If you wish to buy a pre-construction condominium, you must put money down as a deposit. This deposit will be retained in an Interest Bearing Trust Account for up to six or seven years. The developer can collect the interest earned on the deposits; however, the developer must first supply the proper tax documentation, which will require your SIN number. It is critical to highlight that this sensitive information is always handled with extreme caution and will only be shared with the developer.
Until final possession, a mortgage is not necessary. For a condominium in Toronto, final possession is usually 3-5 years following the first wave of sales. The deposit money you have already paid will be applied to the purchase price at the time of final possession.
It is critical to recognize that each condo launch cycle will be slightly different. With this in mind, a developer will often raise pricing and remove various incentives as they progress through the stages. The stages below illustrate a typical new condo launch in Toronto; however, these stages are not representative of every launch.
FIRST STAGE – FRIENDS AND FAMILY
This level is often not publicized and is only accessible to the developers’ close friends and relatives. At this level, there is usually no “event” to purchase. Before the developer begins selling to the general public, friends and family members will be asked to purchase.
STAGE 2 – PLATINUM ANNOUNCEMENT
The platinum launch is often the greatest time for investors to buy in a new condominium, with the following benefits:
Pricing on the first day of a condo launch is often substantially lower than at other phases of a condo launch.
Typically, the most advantageous benefits and incentives
The best suite options (During the platinum era, “prime units” are frequently sold)
STAGE 3 – VIP LAUNCH
VIP Agents sell pre-construction residences but not in the same volume as a Platinum Agent. They will be invited to the second round of sales, during which prices are normally raised, bonuses and incentives are removed, and the top suites are typically already sold.
STAGE 4 – TREB AGENT LAUNCH
Developers will then make their sales available to any TREB agent that has clients. The majority of the nicest suites have already been sold, and prices have been dramatically raised; nevertheless, “buy incentives” may be added at this time.
STAGE 5 – INVITES TO PRE-REGISTRATION
If you sign up on a developer’s website, you will receive an invitation to buy before the majority of public customers. You do not need an agent to purchase at this time, although it is encouraged that you have independent buyer representation to help you through the process.
STAGE 6 – OPENING TO THE PUBLIC
The public opening is the final stage of a condo launch. There have already been five previous purchasing groups by this point. In Toronto, the main guideline is, “if you can stroll into a sales office without an agent representation, you are way too late.”
If you have any queries or require extra information, please contact a member of our staff.
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