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12 Helpful Tips for Buying a New Condominium

If you’re thinking of buying a new condominium, there are many things to consider before you sign on the dotted line. The first thing you should ask the builder about is the status of the project’s development. You’ll want to know which conditions have been approved such as if the project has been financially secured or if the required building plans have been approved. You’ll also want to know the steps for approval of the development.

Here are some tips to help you make an informed decision:

  1. Make sure you understand exactly what is and isn’t included in the purchase price.
  1. Carefully review the unit’s layout, boundaries and unit factor.
  1. Review the planned amenities and decide if they meet your needs.
  1. Make sure you have a good understanding of what you can afford in common expenses fees and determine what the expected fees for the unit are.
  1. Carefully review your disclosure statement and clarify any questions you might have with the developer or a legal professional.
  1. Ask about what types of changes or modifications are permitted, and how much they cost. This includes bigger modifications like moving windows and doors, and smaller things such as flooring or cabinet colours or finishes.
  1. If you are concerned about future development or changes in your area, you can inquire with your municipality about whether there is any planned construction nearby.
  1. Ask whether the utilities will be included in the corporation’s common expenses, or whether each unit owner will pay individually for their own.
  1. Ask the developer about noise and/or odour reduction measures.
  1. Review the information about new condominium warranties on Tarion’s website and the different occupancy dates included in your purchase agreement.
  1. Confirm with your developer that the building will be accessible for individuals with disabilities, particularly if you or someone who will reside in the unit has accessibility needs.
  1. Speak to a lawyer and/or real estate professional before signing any documents.

12 Helpful Tips for Buying a New Condominium

Pre-Construction Condominium Project Cancellations

If a pre-construction condominium project is cancelled, buyers are entitled to receive their deposit back with any interest under section 19(3) of Ontario Regulation 48/01.

The amount of interest owing is calculated using the Bank of Canada’s overnight interest rate, minus two per cent.

More information on pre-construction condominium project cancellations is also available on Tarion’s website.

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