Credit: Davies Smith Developments
With so many new buildings, buyers are surrounded with an array of off-the-plan properties to choose from, which is why it’s important to keep a level head and not get whisked away by all the bling.
Doing your research beforehand and shopping around is key. Not only can it save you money, but it will also prepare you for the task ahead. By following a tried and true method you can rest easy and feel confident as you join thousands and become a condo owner.
Looking past the glitz and glamour
It’s easy to get carried away upon entering a sales office or model suite. After all, developers are spending big bucks to make sure they stand out from the competition. This is why you should remember that if you want your unit to look like the model, it’s going to cost you. Many of the features that you see are upgrades, and aren’t included in the original purchase price.
Before meeting with a sales representative, prepare yourself with a list of questions. These may include: what amenities are in the building, is parking or a locker included in the price, when is the building expected for completion, how much is the deposit that is required, what type of financing is available, what are the maintenance fees, and what sets this project apart from others in the area? The responses that you receive will help you make an educated decision.
Understanding your floor plan
A floor plan should always be included with your agreement, and if not, then warning bells should go off immediately.
“Always get a floor plan with your agreement and make sure that it includes dimensions for each room, and not just a general square footage of the unit,” says Michelle White, CEO and consultant at Today Living Group. “If it doesn’t include this, stay away because they might be hiding something.”
Generally, most floor plans are developed before the city has approved the building, and this is why they’re hardly ever to scale. For this reason, builders are only allowed to have a 2–3% variance in their floor plans.
“Use logic and common sense when reading your floor plan,” says White. “If the living room is only 10 feet, then you probably won’t have room for a couch, chair, coffee table and entertainment unit.”
Storage is one of the biggest concerns in condos today, especially in smaller units. White suggests looking at where the closets are located, and seeing if there is any ‘dead space’ – an area that is simply dry wall. If so, then you can ask to have the closets extended and fill this space. Many builders don’t have a problem doing this. Also, think about using built-in furniture to decrease crowding.
Negotiating your contract
A model represents how a condo can look, not how it will look. This iswhy it’s vital to remember that onlywhat is stated in your Agreement ofPurchase and Sale is legally binding.No Agreement is ‘standard’ and insteadmany of the terms are negotiable.
It’s time to take out your magnifying glass and scrutinize the contract, but understand you may not get everything you wish for. “The vendor will typically give certain sales negotiation instructions based on what the current market is at the time of sales, and will give direction to their salespeople and/ or their lawyers as to what can and can’t be negotiated in the Agreement of Purchase and Sale,” says Tammy Evans, condominium development lawyer at Fraser Milner Casgrain LLP.
There will be a section on adjustments, and these are normally where the buyer can make some changes. Some negotiations can result in capping or waiving of certain adjustments in favour of the vendor, such as development charges, Law Society transaction fees, or check meter installation fees, notes Evans.
According to Denise Lash, condominium lawyer at Heenan Blaikie, you can typically put a cap on square footage of the rooms. Also, state that you’d like to put bulkheads along the periphery of the room, or else this could significantly decrease the height of the room. Include a clause stating that if countertops and fixtures are changed, the builder will substitute with equal or better quality materials. Pay special attention to appliances and extras and ensure they’re noted in the Agreement.
Typically there’s a 10-day period in which a purchaser has the opportunity to walk away from a deal. After that period, the Agreement is final and the buyer is legally bound to it. However, most Agreements state that the vendor always has the right to terminate the contract, especially in the event that they’re unable to provide financing for the new project.
Signing on the dotted line
Agreements need to be reviewed and usually once paid, deposits are nonrefundable, even if the closing never occurs, notes Lash. There are also tax implications that need to be considered, which is why it’s important to get an experienced lawyer to explain the documents in detail before signing.
If after moving into the unit you notice that not everything stated in the Agreement was followed through, contact your warranty program, which is province specific. Each new condo purchase is covered under a warrantor.
Shopping around
Here’s what you can typically expect when checking out various sales centres and models:
- You’ll be asked to register. The registration form includes your name, address, phone number, what type of unit you’re looking for, how much you’re willing to spend, and how you heard about the project.
- A sales representative will show you the layout of the entire project.
- You’ll be shown the unit you’re interested in, complete with dimensions. This is where many numbers will be presented about the sizes of rooms and square footage. A good idea might be to check out resale units beforehand so you have a better understanding of what size is suitable for you, and so you have something to compare to.
- The sales representative will discuss the different features and amenities that may be included the project, as well as any special offers or discounts.
- You’ll be taken on a tour through the model. If you’re in a sales center, there may only be models of various rooms, such as the washroom or the kitchen.
- You’ll be given a chance to voice any questions or concerns that you have.
- You’ll be shown a pricing package featuring the total deposit that’s required, and by what date.
- At the end, the sales representative will give you his or her card, and will follow up with you over the next few days.