Buying a Condo - New

Buying a New Condominium from a Builder

If you are considering buying a condominium, it may be one of your largest financial investments so please make sure you research before signing on the dotted line says Linda Pinizzotto, Real Estate Sales Representative and Founder President CEO of the Condo Owners Association.

 

Linda has provided COA with this extensive portfolio of information for your protection and has recently launched her Radio Show "Condo Xpert". She is an Award Winning Realtor, Government Relations Chair and Director of a local Real Estate Board.

 

Buying New vs Resale Condominiums

Buying a New Condominium

If you are purchasing a new construction condominium; take the time to review a number of concerns.

If you are enlisting the services of a Registered Real Estate Representative, you must enter into these development sites with your Sales Representative right from the start otherwise they cannot assist you. New Construction Condominiums are very confusing compared to the Resale Market. The Sales Representative at the New Condominium Sales Office is hired by and represents the Builder. They also may not be a registered Real Estate Salesperson.

 

We highly recommended that all New Condominium Buyers enlist the services of a Residential Resale Real Estate Sales Representative who has a vast amount of knowledge relating to New Construction Condominiums, Condo Documents, By-Laws and Rules and Regulations of a Condominium prior to entering into any Model Site. A licensed professional should have all of the knowledge listed below.


Considerations on New Construction:

  • Review reputation of the Builder
  • Determine the launch date of the site - if there has been any price adjustments
  • Ask if there is any additional Phases of Sister Buildings to this Phase of construction
  • Ask if the 2nd Phase is a different Condominium Corporation
  • Ask if there is any entity of Share Facilities relating to the Building ie. Recreation Centre
  • Ask if the suites are Residential, Live-work or Commercial Usage /or both
  • Review all floor plans for wasted hallway space in relation to square footage of unit
  • Layout and Design, both living space, balcony or terrace
  • Review the location of the Building and the direction the Unit is facing
  • Note any vacant land or parking lots - Check with the City for Plan of the Area
  • Review the list of inclusions and note those with additional expenses
  • Calculate the Price per square foot of the Unit as per builder plans
  • Ask Sales Representative to explain square foot calculation inside wall
  • Confirm the price per square foot to determine the Maintenance Fees
  • Review the proximity of the elevators and garbage chute
  • Check if the building has energy features and tri-sector garbage chutes
  • Check if the building has sub metering for heat and/or hydro
  • Ask about finishings within the unit - ceiling height, floor coverings,
  • Obtain a list of Inclusions (ie appliances)
  • Check light fixtures outlets on the plans (include those that are capped in purchase)
  • Ask about the amounts of keys, fobs and mail box keys provided with purchase
  • Ask if there are guest suites and if the superintendent suite is owned by the Corporation
  • Is there a rooftop patio and/or swimming pool - sundeck or anyting of concern
  • Note swimming pools on rooftop could be very expensive to fix - long term

 

You will be provided an Agreement of Purchase and Sale

  • Note the payment schedule of your installments
  • Note the projected occupancy date and if there are any restrictions
  • Have the Sales Representative explain the difference between Occupancy and Registration
  • Ask if there are any conditions or preventions of Assignments
  • Have the Sales Representative explain details on Assignments and/or Rental prior to Registration
  • Ask about option to purchase parking and/or a locker
  • Learn about the Tarion Warranty Corporation
  • Understand Ontario New Home Warranties Plan Act

 

Have your Solicitor Review during 10 Day period

  • You will be provided with the Condo Documents of the Building (approx 150-200 pages)
  • You may also receive a package of By-Laws and/or Rules and Regulations
  • Have your Lawyer Review these Documents
  • Find out if there is any restrictions in the Documents relating to ie. Pets, Barbecues
  • Check Short Term Rentals and if they are time sensitive or unlimited
  • Check if the Corporation includes any affordable Housing units
  • Check if there are any leasing equipment ie. boilers, communication room etc.
  • Check if the full Parking Garage is Owned by the Corporation

 

Ontario New Home Warranties Plan Act, RSO 1990, c0.31

 

Tarion Warranty Corporation

The New Home Warranty Act which provides Consumer Protection is also available in other Provinces in Canada.

New Condo Buyers must familiarize themselves with the New Home Warranty Plans Act when they are purchasing new construction homes. Whether they are purchasing a condominium unit you must be registered with Tarion Warranty Corporation which is a private corporation established in 1976 to protect the rights of new home buyers and regulate new home builders. Tarion administers the Ontario New Home Warranties Plan Act, outlining warranty protection that all new home purchasers are entitled to in Ontario.

Remember the Condominium Building is also covered under Tarion Warranty Corporation and the Ontario New Home Warranties Plan Act, RSO 1990, c0.31

 

REGISTER WITH COA

Remember this is only the beginning; please keep informed by registering with COA once you have purchased

http://www.coaontario.com/register-with-coa

 

For More Insight into Condominiums

 

Special Note: