Arsh Syed, Real Estate Agent & Founder at Real Estate in Toronto

Real Estate in Toronto – REIT

Discovering the best of Toronto's real estate, from downtown condos to suburban family homes. Where Pre-Constructionish Dreams Begin!

Beware of Buying pre-construction before they are fully constructed!

Sudip Sehgall, a recent Canadian resident, invested in a pre-construction townhouse in Surrey, B.C., with an $81,990 deposit, aiming to own his first Canadian home. Facing financial pressures, he couldn’t sell his property in New Delhi due to floods and unfavorable market conditions. Attempting to find a buyer for the Canadian property, he was denied by the developers, resulting in the loss of his deposit. High interest rates and declining condo values contribute to a growing trend of Canadians defaulting on pre-construction deals, risking the loss of deposits.

Must Avoid Unfair & Complex Situations:

Thorough Research: Investigate market conditions, property values, and potential risks before investing in presale or preconstruction properties.

Financial Preparedness: Ensure financial stability and explore financing options well in advance to avoid challenges in meeting payment obligations.

Legal Consultation: Seek legal advice to understand the complexities of pre-construction contracts, ensuring you are aware of your rights and potential risks.

Property Inspection: Verify the specifications promised in the pre-construction contract and ensure they align with your expectations before committing.

Market Trends: Stay informed about market trends, as declining values may affect the property’s resale potential and mortgage approval.

Developer Reputation: Research the reputation of the developer, considering past projects and customer reviews to gauge reliability.

Flexibility in Contracts: Negotiate contract terms, including provisions for assignment or reassignment of the deal, to provide flexibility in unforeseen circumstances.

Financial Contingency Plan: Have a contingency plan in case external factors impact your ability to fulfill the contract, such as unexpected market downturns or personal financial challenges.

Legal Grounds: Be aware of potential legal grounds for challenges if faced with unreasonable denials or unfavorable contract clauses.

Government Regulations: Understand and leverage government regulations, such as waiting periods and disclosure statements, to protect your interests and make informed decisions.

Licensed realtor and pre-construction expert Arsh Syed assists in buying or assigning contracts. He can be reached at 416-844-2217.

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