The pre-construction phase presents an opportune time to buy a condo. The reason most Canadian buyers planning to invest in the real estate are advised to buy properties during this phase is the prices tend to be somewhat competitive. Not just that, this is also the tome buyers get a chance to choose what they want regarding floor space, exposure as well as customizing the home to suit their preferences.
Facts to know about pre-construction phase condos
The deposit
While purchasers of real estate condos are expected to have a down payment of at least 5% after signing the agreement, buying a condo during the pre-construction phase requires a significant contribution. In most instances, these contributions range from anywhere between 10 – 30 %. How the final remainder is settled depends on the contractor or developer you are working with. Ideally, this implies that you should be ready to pay a more substantial deposit for a pre-construction condo.
The cooling off period
When buying a new condo, Canadian laws provide a cooling off period for potential owners. As such, they have the right to change their mind within the cooling off period without any consequences. The buyer gets the opportunity to keep things in order by arranging for finances and have the agreement reviewed by their lawyers before committing themselves fully. If the buyer changes their mind for some reason, he or she is allowed to change their mind during the cooling off period.
Be ready to wait
Most builders offer the expected completion date. Unfortunately, there are times things do not go as planned, which ends up extending project times. As much as some builders might have some guidelines on how these delays might be handled in the agreement, you should always be prepared to wait. From experience, a delay ranging from anywhere between 6 months to 2 years is almost permissible.
The interim occupancy period
Once the construction phase is complete, and the condo is ready to be moved into, there is a period known as the interim occupancy. During this period, the buyer cannot be considered to be the rightful owner. They are expected to complete the payments as they wait for the condo to be registered. It is after the registration is complete when the condo unit is transferred to the owner.
If you are planning to buy a condo anytime soon, try reputable sellers. These properties are now open to the public. With the right unit, you are accorded a chance of enjoying modern real estate luxury at its best.
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