Condo Culture: I Will Take Five New Units, Please

March 11, 2014 - Updated: March 11, 2014

Q: Is there a limit to how many units I may purchase?

A: That depends on the individual developer. Some do have restrictions concerning investment purchases. Best to talk to the agent/builder.

 

Q: Would a developer/builder ever have reason to stall registration? What happens after registration?

A: What would be the purpose of this? The company that built the condo will not get their money until after registration occurs. They would be anxious for a final closing in order to move on to additional condo projects.

Once the building is registered, lawyers work with the buyers and their mortgager to close all sales, and funds will be transferred to these same lawyers, who in turn must pay the developer. The deed to each unit may then be transferred and properly registered.

 

Q: When is my brand new condo legally mine? I am waiting patiently and would like to have possession as soon as possible.

A: The condominium corporation must be registered before title of individual units can be transferred to the purchaser. If the building is almost complete, the agent should be able to provide a fairly accurate estimate regarding possession date. But you can live in the unit before it is legally yours. You will pay an “occupancy fee” (sort of like rent), which consists of three amounts; calculated monthly interest on the unpaid portion of the purchase price at a percentage rate determined in accordance with the Condominium Act; the projected common expenses contribution for the unit based on the first year budget that is included in the disclosure statement, and a reasonable estimate of municipal taxes for the unit that will be adjusted if necessary once the actual taxes are determined.
 

Q: What happens if I find something wrong with my new condo unit?

A: There is a very important process called pre-delivery inspection for new condos. Before you move in, you must examine your suite with a service representative. Any defects agreed upon should be noted on a special form (cracked tile, chipped counter, missing cupboard knob, etc.).

All defects must be noted on this special form. It acts as an official acknowledgment that the builder recognizes them as legitimate flaws. Go over your list a few times before you submit it to the developer and keep a copy for yourself.


Tagged with: new homes condo culture condos buyers sellers real estate toronto royal lepage terrequity article
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