Buying a pre-construction house or condo is an excellent way to enter the Canadian real estate market. First, you must choose a project that you like and an area where you wish to live. If you want to enter the pre-construction market, it is recommended to work with a real estate agent.
You must first choose a place to call home. Pre-construction projects may be found all around the Greater Toronto Area, with location always being the most essential part of any real estate decision.
Working with the real estate agent or broker is recommended. Sometimes, they are granted platinum access to new projects. although no individual broker has platinum access to every project.
When you sign the purchase agreement, property ownership is not instantly transferred. Instead, you are assigned a unit, which serves as a reserve for a specific unit once construction is complete and your unit is completed. Which may take a few years but you will be able to move in during the occupation period, after which you will get full ownership.
When you are finally ready to sign a contract for pre-construction condo ownership, you make a $5,000 deposit upon signing the agreement. Typically, builders want much larger deposits in order to fund construction.
You continue to make deposits. Despite receiving the key, you do not yet own the unit. During the occupancy term, you may live in the condo unit, and with the builder’s permission, you may also rent the unit to someone else.
At this time, there are no mortgage payments, but there are monthly occupancy costs. The remainder of the deposit can be paid in a variety of ways, including 5% at 30 days, 5% at 90 days, 5% at 180 days, etc. In certain cases, the deposit is scheduled along with the phases of construction.
Once the construction is complete, you pay the final closing charges, and at that point you start making monthly mortgage payments. At this point, ownership is transferred to you, and the property is officially yours.
Can I sell my pre-construction condo?
You may sell your contract through an assignment sale if the developer gives you permission to do so.
When you purchased a pre-construction condo, you entered into a contract to purchase the unit before or during development. If you are considering selling it, you should get the guidance of a lawyer who is licensed to practice real estate law.
As many pre-construction condo purchasers will tell you, quite a lot may happen between the time you sign a contract and the time you take ownership of your new unit. There could be construction delays, and the developer could cancel the project.
If you’ve changed your mind and want to sell the condo prior to taking possession, you can do so through an assignment sale, which is simply the sale of your agreement.
There must be a clause in your contract allowing you to do so, and sometimes it comes with a fee or the condition that the developer has the first right to buy it back. You must consult with your lawyer.
In an assignment, you, as the original buyer, transfer your rights and duties under the pre-construction condominium purchase agreement to another buyer. The new buyer will assume your rights and responsibilities under the terms of the agreement, as outlined in the original contract with the developer.
By agreeing to the assignment, a new buyer will purchase your agreement with the developer to complete the final sale. It becomes an agreement with terms between you and the new buyer.
You do not own the condo unit until it has been constructed, the sale has closed, and ownership has been officially transferred into your name.
Even if the developer authorizes the transaction, it may be difficult to find another buyer due to possible limits on how the unit can be sold, prohibitions on selling the property publicly on the multiple listing service (MLS) or other platform, or fees required to get approval. There is also the issue of the developer trying to market similar units.
If you have been considering Buying, Selling, or Renting your home or have avoided the notion due to a negative experience, let Arsh Syed, a Real Estate Agent in Toronto, manage the deal.
His experience and understanding have been indispensable. He desires Toronto’s housing crisis to improve. He wants to establish relationships and spread the word about his exceptional service, increasing the likelihood that renters and property owners would place their faith in him.
Arsh wants property owners to know that by hiring him, they are drastically reducing risks, saving time and saving money.
For further information about his services, please visit
https://www.real-estate-in-toronto.com or contact (416) 844-2217
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