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Buying condo unit at pre-construction stage is different from buying a resale home. After you sign the agreement with builder and pay the initial deposit, the ball starts rolling from there on. In a short period of time after booking your unit many things happen. Doing some groundwork ahead of time will certainly help. Also note-worthy, in Ontario there is a mandatory 10-day cooling off period when you buy a pre-construction condo unit from a builder.
What to expect immediately after signing
- Get a lawyer to review agreement
Agreement of Purchase and Sale is a lengthy document. It is easy to miss out critical details in this legal document and the document uses words that might be new to you. It is wise to have your document reviewed by a real estate lawyer right away. Do not hesitate to ask your lawyer questions and make sure that you understand all the terms and conditions stated in the offer.
- Gather the required future-dated cheques
Gather all cheques, including cheque for payment required within 10 days of signing agreement and all the future-dated cheques to complete the deposit payment.
- Get mortgage pre-approval letter
You will also need to get mortgage pre-approval letter and send it to the builder usually within this 10-day period.
Above three steps must be completed within the 10-day period to firm up the deal.
Change your mind for any reason?
During the 10-day period, condo purchasers can pull out of the agreement if they are not completely satisfied with the terms of the agreement, can’t get pre-approval letter or for any other valid reason without penalty. This is a built-in cushion provided by the law to protect the condo purchaser.
This provision of 10-day cooling off period is not available to freehold properties, which means the deal is firm when you sign the agreement.
If you have any questions about this or looking to purchase a pre-construction condo, I would be happy to help. Contact me at 647-834-9928 or send an email to [email protected]