Keeping in line with our recent lineup about purchasing condos, we're diving deeper into the particular intricacies of purchasing a new-build condo.
In this post, we're specifically focusing on the crucial 10-Day Cooling Period and the often overlooked Interim Fees. It's a quick one, but an important subject that's not always well-known!
So, whether you're a first-time condo buyer or a seasoned investor, let's navigate through the finer details together.
Here are 3 Quick Tips to Purchasing a New-Build Condo!
3 (Unknown) Quick Tips to Purchasing a New-Build Condo
Understanding the 10-Day Cooling Period: The 10-Day Cooling Period, mandated by the Government, is a pivotal stage in the condo purchasing process. Contrary to popular belief, it doesn't kick in the moment you sign on the dotted line; rather, it commences when the builder executes the agreement—typically after you've signed. This grace period is designed to empower buyers by giving them the time to really evaluate their purchase and whether it fits their needs.
During these 10 days, buyers have a unique window to consult with their legal representatives. It's not just a formality; it's a golden opportunity for lawyers to negotiate with the new-build condo constructor on critical aspects - such as securing an assignment option, discussing leasing opportunities during the occupancy period for investment properties, or other terms important to the buyer, lawyers play a crucial role. The extensive document (which can be anywhere from 50-100 pages!) may seem daunting, but a thorough legal review ensures that the terms align with the best interests of condo owners.
Interim Fees Decoded: Interim Fees often sneak up on new-build condo buyers, covering the interest on the balance of the purchase, maintenance fees, and related property taxes. These should be explained in the agreements ahead of time, so be sure to thoroughly review the terms surrounding interim fee.
Pro Tip: One common pitfall to avoid is double-charging—make sure you aren't also paying property taxes separately to the city if you've already remitted them to the new-build condo developer during the Interim Period. The responsibility lies with the developer (current owners) to cover this period (if they charged for it via interim fees)
Condo vs. House: Spotting the Differences: Now that we've covered the intricacies of purchasing a new-build condo, don't forget explore the distinctions between owning a condo and a house. From shared responsibilities and community living to the unique financial considerations, understanding these differences is vital for prospective buyers. But don't worry, we've got you covered with plenty of information about this topic:
Check out...
💭 Condo Living for New Residents: What to Consider When Exploring Whether to Buy or Rent a Condo.
💰Understanding Your Financial Obligations as a Condo Owner: Saving Cents for Convenience
🚰Leaky Faucets + Broken Elevators: Who Does What? Understanding Owner vs. Corporation Maintenance
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Updated on April 28, 2024.