Buying a new-build condo? Well it’s important to have the right professionals on your team who can assist you with the legalities of purchasing a condo. Condo purchases are a bit more complex than the standard old residential resales. Below are some of the legal (and non-legal) things you should keep in mind when you’re about to finalize on your new-build condo purchase.
Cooling off period – You’re entitled to a statutory cooling off period when you agree to purchase a new-build condo. This means that even when you’ve signed off and finalized the agreement of purchase sale on a new-build condo, you have a certain amount of time to rescind the contract. This means that you can walk away absolutely scot-free from the deal. This is quite a valuable resource in case you’ve found yourself in a bad bargain. Ask your real estate agent or lawyer to learn more about the new condo cooling off period.
The difference between occupancy closing and final closing – Yes there’s two types of closings when you purchase a new-build condo. We know you’re used to the single closings that are the norm of residential resales. However, in new-condo sales you might be surprised to learn that there are two separate closings. The first is an occupancy closing, wherein you take possession of the property and pay occupancy fees. The second is the final closing, this is when you take legal possession of the property. The rationale behind this is that builders usually finish construction on certain units before the others. As such, they want their clients to be able to live in the ready units, while the others are still under construction.
Tarion – As a consumer of a newly built home, you’re entitled to the Tarion Warranty. Keep in mind that your builder is required to provide you with disclosure and details regarding the Tarion Warranty – usually this is in the form of a disclosure binder. This warranty protects you from issues such as delays in closing and defects in the property. If you’ve got an issue with your builder, we definitely recommend you to contact Tarion or a lawyer to discuss your options. By the way, the Tarion warranty is required by statute and is free for you as the consumer.
Rebates – When it’s finally time to close on your condo keep in mind that you’re entitled to various rebates. If you’re purchasing your first home ever, then you’re entitled to deductions on your land transfer tax. In addition, if you’re purchasing a new-build condo and you’re residing in it or you are renting it out to others, you’re entitled HST/GST rebates. These rebates are usually included in with closing adjustments or can be applied for on your behalf by an accountant or a lawyer.
If you’re a first time home/condo buyer it’s even more important to get the right condo professionals on your team. Don’t wait until closing to reach out to the right people. As you’ve read above, it’s important to get these people involved from the get-go. This will save you money and stress down the line.
Falcon Law Professional Corporation