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Thread was a couple weeks old when it got bumped so you may have already done this. I bought mine (in Toronto) probably ten years ago so some of this might be old info. Also, standard I am not a lawyer warning.quote:If we are to buy, what do we need to show the developer at the time of signing? Do we need the in-law's cash in hand to cover the shortfall between the purchase price and our pre-approval + own cash? quote:Since there is a two year period over which the 20% will be paid to the developer, could we have the in-law's cash in hand only for the time of the signing, give it back to them for the two year period that we are paying the down payment, and then hand it over at the time of occupancy/ownership? quote:When will be the first time I can see the contract for sale? I know there are things I want to negotiate, like capping the fees that come at the end, towards occupancy, and hustling for some add-ins like a free locker, but will the I have to sign the sales contract the same day I see it? quote:When do I actually take on my mortgage? In two years when the property is registered and I take ownership? Other notes: We keep using the phrase "two years" from now. Realize there is no way it will actually be on time. If they haven't started digging out a foundation yet it is already delayed. This brings me to a huge mistake I made when I bought my condo. I was under the impression that I could cancel the deal if they delayed too often. I brought my contract to the terrible lawyer I hired to read it and the one question I had was to make sure that I could cancel and get my money back if this dragged on too long. He said yes. He was wrong. The date on your contract will be a tentative occupancy date, they can change this as much as they want with no penalty. Only a firm occupancy date means anything, they will not give you this until the entire building is up and standing and they are sure they can make it. My condo didn't even break earth with heavy equipment for two years. I really hate that lawyer. Hire a good real estate lawyer. I bought back when prices were still going up so it worked out in the end but that isn't happening anymore, the condo market has been flat for years and most people assume condo prices are going to drop. The only real debate is how bad that drop will be. You should go to an open house for a unit of comparable size to the one you are thinking of buying. They keep building them smaller and smaller. Looking at the floor plan is a terrible way to imagine the space. You need to go and see a place with walls and think if you could live in that much space, especially if there are two of you. The condo fees the developer list are fictitious. The developer has to pay the difference between the condo fees and what it actually costs to run the building for the first year. So to lure people in and sell units faster they set a very low fee and eat the loss. Once that first year is up and your condo corporation actually has to pay the bills itself those fees will have a massive jump. Be very careful in your final inspection. They will have someone there with you when you do it, this person will pretend to be your friend and on your side, they are not. They work for the developer and want to gloss over any problems. Make sure everything is level and square, that the outlets work, that the finishes you asked for were put in, that the paint is up, that the tiles aren't cracked. Make sure the water runs and the pipes are hooked up. One of the things I found on my inspection is that the drain hoses from the dishwasher weren't attached to anything, imagine if I had run it and flooded my brand new kitchen on day one? Speaking of which, be sure to buy condo insurance (any mortgage will insist on insurance anyways). The most important aspect of condo insurance is liability protection. If I had flooded the kitchen that would have been bad but the water leaking into the ceiling of the next three units below me would have been disastrous and is what liability insurance is for. Most people expect interest rates to rise over the next two years so your pre-approved mortgage needs to be 'locked-in' at today's rates. If rates do go up and your pre approval expires your monthly payment will be much higher. The pre approval has a time limit, it probably won't last until your condo is actually built (due to delays) and so it will need to be extended. It is very doubtful they will choose to extend your good rate from today's market if rates have increased significantly. As soon as interest rates start going up there is going to be a lot of damage in the condo market. You could wind up with a delayed condo that is worth less than what you paid and at a higher interest rate than what you agreed to. I know you said you don't want advice along the lines of "don't buy it" so I won't directly say that but I am curious about your reasoning for this. I bought mine ten years ago when prices weren't as high as they are now, back then you got a discount for buying new. They had to sell condos which weren't built significantly cheaper than similar ones which were already built. They somehow manage to not do this anymore so I don't know why people bother with all the headaches of pre-construction condos. It would be radically better to just save your money for a couple years, especially since the consensus is that condo prices have to fall at some point.
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Aug 23, 2014 17:33
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| # ¿ Apr 29, 2024 14:23 |
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