A lawyer should be hired at the beginning of the pre-construction condo purchase to make the entire process lawful and smooth. Either to review the agreement of sale and purchase or to go through any other documentation, it is the lawyer who helps to get the things perfect. Moreover, it is the responsibility of the lawyer to save your money and to facilitate you with a beneficial deal eradicating the possibility of fraudulent activities. Hence, based on your needs and desires well, a lawyer helps to curtail unnecessary spending on the property purchase and thereby protects the financial risks that can come in the entire process. As a lawyer is well-known of all the legal terms, he/she helps you to get the lawful rights and minimizes the heavy financial burden on you. So, it is always beneficial to have an experienced lawyer before undergoing the pre-construction condo purchase.
Social Insurance Number (SIN) is very important to provide while purchasing a condo. In fact, for any legal procedure for buying or selling, providing your SIN number is vital. With a valid SIN number, you can assure complete security or safety of your sensitive information that is exchanged while purchasing. For purchasing in a condo, you need money as deposits in an Interest Bearing Trust Account that will be kept there for up to 6-7 years, and the developer may collect the interest from it. As the developer will always need to issue tax documentation for collecting the interest from the deposit, the documentation must contain the SIN number to handle the information confidentially. Hence, to have a safe and secure purchasing process, it is important to provide your SIN number in the beginning.
The purchase process for a new Condominium launch for a platinum agent involves 7 significant steps to get the best suites or projects that can give them the maximum benefits.
- Project selection
The first step requires the investor to choose the right project to purchase. This may include consultation, brief study, etc. while selecting any real estate property in Condominiums.
- Suite selection
Now, the second tough task is to select a suitable suit according to the needs, desires, and budget. You thus need to go through the details of every suite you go to check such as choices of floors, analysis of floor plans. Price of the suites and determine whether the price is suitable with the existing accommodation or not.
- Submission of Suite Reservation Worksheet
Once the determination gets completed, the next important thing is to get the suite reservation completed. The worksheet will contain the outline of the suite that you are going to purchase and other flooring details along with occupation, address, and contact details of the purchaser, etc. The worksheet then needs to be returned to the platinum agent, and the agent may ask you to prove proofs of identity address to maintain the accuracy of the worksheet.
- Suite Allocation confirmation
Once the worksheet is submitted to the platinum agent along with the necessary documents, the agent will then confirm your allocation to the suite. If you confirm your decision to buy the suite, he/she will fix an appointment date on which you will be asked to sign the agreement.
- Signing of Agreement
On the appointment date, you will be asked to sign the agreement. If all the information provided by you for the worksheet is genuine, the documentation will be prepared before your arrival. You will need to sign multiple copies of the agreement paper to avail a copy to all the parties involved in the purchase process.
- 10 Day Recession Period
After the signing of the agreement, you will get 10 days of the recession period, which is also called the “cooling-off period.” In this period, the developer will review your agreement and decision to purchase the suite. You are recommended to follow these things during this period of 10 days,
- Hire a lawyer to review the agreement, and after going through the papers, he/she will address the issues (if any) in the document that are maybe of your concern.
- Have an approved and experienced mortgage broker of the area so that he can address the property related issues. If you find out any issue, you can cancel the agreement within this period. You won’t need to pay any penalty for cancellation.
- Cash deposit
When everything goes firm and smooth, on the 11th day, you will need to deposit the money either through cash or cheques, to finalize the deal for the suit.
No, you don’t need to mortgage till the final possession. It may take 3-5 years for final possession once the first sales round gets completed in Condominium, Toronto. During the final possession, the purchase price will be applied based on the deposit money that you have kept to Interest Bearing Trust Account.
Every Condo launch cycle differs from each other, even to a slight extent. The developer, based on the prevailing launch cycles, goes through various succeeding stages and will increase the prices and remove the incentives. The new condo launch, Toronto has the following stages that are not available with every Condominium launch.
STAGE 1 – FRIENDS & FAMILY
This stage involves the introduction of the purchase to the developer’s friends or relatives. It is not at all meant to purchase property at this stage as the developer invites his/her friends or family members before advertising it to the public for selling.
STAGE 2 – PLATINUM LAUNCH
In the platinum stage, the investors get the best time to invest in New Condominiums as here; they will get the properties at much lower prices as compared to the other Condo launches. They can also select the “prime units” that are often available in this stage.
STAGE 3 – VIP LAUNCH
This stage is particularly meant for VIPs who don’t sell the pre-construction condos at the volume like platinum agents. They are invited in this stage with increased prices and with no-incentive. Usually, in this stage, the best suits that are already sold out, and the VIPs need to deal with a limited number.
STAGE 4 – TREB AGENT LAUNCH
In this stage, the developers are allowed to open up their sales to the TRWB agent who may have one or several clients. This stage is subjected to selling out of most of the suites and the remaining needs to be purchased with increased prices along with some “purchase perks.”
STAGE 5 – PRE-REGISTRATION INVITES
This stage calls for the invitation to the purchased through the developer’s websites. For this, you need to be registered on the website, and before other public buyers get the updated, you will be invited through the portal to purchase the suites. It is advised to have representatives from outside who can assist you throughout the process.
STAGE 6 – PUBLIC OPENING
This final stage for pre-construction condo it’s public opening. There are 5 groups from previous purchase prevail in this stage. Toronto pre-construction has one basic rule that says if you step into a sales office with an agent representative, you are already too late to purchase any suite.
Please get in touch with a member of our team if you have any questions or need additional information.