A commonly asked question by buyers is, “Why should I bring my realtor to the sales centre when I can go alone?”

Purchasing a unit directly from the builder will mean you lose all the benefits of working with an experienced preconstruction realtor who can guide you and negotiate the best terms and incentives.

Remember that a builder’s sales representative’s sole purpose is to sell you their product (even if there may be better options for you elsewhere). Your realtor can privately tell you whether the project is worth the investment.

This starts with ensuring that your realtor accompanies you on the first visit to the sales centre. If you walk into a sales centre alone, the builder will not permit you to have the benefits of realtor representation.

At the sales centre, you’ll better understand the project, interior finishes, community vision, and neighbourhood development plans. You’ll also see upgrade options that will allow you to customize the final look of your unit if you decide to purchase.

Use this visit to get a detailed breakdown of all costs. You’ll also be able to clarify construction timelines, restrictions on things like renting out your unit during occupancy, and contract details covering different circumstances during construction.

What do you need to bring to the sales centre to be prepared to purchase a unit?

• A mortgage preapproval letter by one of the major banks
• Valid government-issued ID for every person who will be signing the purchase agreement
• A cheque for the initial deposit (usually 5%) – some builders require this deposit to be either certified or in the form of a bank draft
• Your chequebook to provide post-dated cheques for the rest of the deposits
• List of desired upgrades or preferences
• Your realtor’s contact information
• Your lawyer’s contact information

For first-time condo pre-construction purchasers, it may be a surprise that you can back out of a purchase, if you do it within a certain timeline.

According to section 73 of the Ontario Condominium Act, 1998, a buyer of a brand new pre-construction condo has 10 days from the date of purchase to rescind the deal. In real estate, this is known as the 10-day cooling period.

This is an important time for you to have your builder contract reviewed by an experienced real estate lawyer. The lawyer can clarify any terms and potential risks and ensure the contract reasonably protects your interests. You do not want to skip this part of the process!

Unlike conditional periods in resale purchases where you must submit a document to firm up the sale, if you’re in the 10-day cooling off period in a preconstruction purchase, the deal will automatically go firm UNLESS you notify the builder you want to cancel.

You are not required to do anything during the cooling period, so keeping track of this timeline is important if you want to reconsider buying the property. You will need to give notice of this before your 10 days are up!

This is one of the reasons why you’ll want to have an experienced preconstruction realtor in your corner.

The Agreement Of Purchase And Sale will be a lengthy document with multiple pages. It’s critical to go over every detail in the contract. Here are some important ones to check: 

• Purchase price
• Deposit amount and deposit payment structure
• Estimated completion date 
• Development charges 
• Utility connection fees 
• Assignment fees (if any) 
• Occupancy timelines 
• Tarion warranty information 
• Process for addressing construction deficiencies 
• Additional fees 
• Additional schedules that include incentives 

If the builder has agreed to include items with the purchase of a property, it’s important to have this clearly written into the contract. This includes features, upgrades, appliances, parking, storage spaces, and any type of incentives, discounts, or rights.

Clarify what happens if there are construction delays. What are the builder’s obligations to you if delays happen?

Many builders will use an e-signature platform asking you to sign the contract on an iPad. This means you may be unable to read every contract page on the signing device in greater detail. You can request a paper copy of the builder’s standard Agreement Of Purchase And Sale – this lets you read the standard clauses to understand what you’re signing. If a clause is confusing, ask for clarification.

Reach out to our Team Paliwal today to explore your options and discover how you can enjoy a balanced, fulfilling lifestyle just a short journey from downtown Toronto.

Finding the right home can be overwhelming with so many choices and potential pitfalls. Since 2009, Team Paliwal has been turning challenges into opportunities.

Buyers often face issues like navigating a fast-moving market, understanding how much to offer on a property, and managing the challenges of buying a home. Our team brings deep market knowledge, seasoned negotiation skills, and a personalized approach to make sure you’re protected.

Our unwavering priority is always putting our clients first. This is why Team Paliwal is ranked #1 and top 50 real estate teams on Canada on RankMyAgent,com. Our high ratings from satisfied clients is proof that you can get a well negotiated deal, avoid costly mistakes, and find a home that checks off all your boxes.

Let us simplify your journey to homeownership anywhere in the Greater Golden Horseshoe and help you find your perfect home. Join hundreds of happy clients who made the choice to hire Team Paliwal!