7 steps to buy a pre-construction condo in Toronto or Montreal
Interested to buy a pre-construction condo in Toronto or Montreal? Here are 7 steps to be aware when buying or investing in a new condo.
If you are new the pre-construction condo process, you can check our FAQ Frequently Asked to guide you from the beginning.
Buying real estate with floor plans is actually quite different from buying a resale property or current inventory. Here is a simple explanation of the buying process when it comes to pre-construction condo.
1. Work with an insider broker
As a buyer, whether purchasing for personal use or investment purposes, working with an independant agent will make a big difference in your experience: incentives you will get, opportunity to choose the floor plan earlier and mostly the price you will pay.
An independent agent will be able to advise you on the condo market VS the sales agent of the specific project will for sure only sell you his project. An insider agent will also be able to give you access to the best pricing, floor plans and incentives since they will be aware of the exact launch of the project.
2. Select your project
Depending on your needs (end-user or investor), it is always recommended to choose wisely your unit. When are you thinking to move in there? Is your finance ready for the delivery year?
Undoubtedly, this step is the most crucial one because you should not make a mistake. It is the step where you need to take into consideration as much information as possible. You need to make sure you to choose the right project considering what it will be used for.
So ask yourself questions about the usage of it, when you get it and the reason why you want it.
Determine whether it will be used for personal use, or for a specific investment. If you want to acquire one for personal use, you need to make sure that all the installations and of conveniences meet your needs.
In the case where you want to buy in order to invest, it is of utmost importance to take into consideration where it is located, the income it would generate in terms of rent, and the like.
To find the right condo for you, you need to have a large choice. You can click here to have many options.
3. Select the suite
Are you looking for sun exposure? Rental income? Resale and appreciation? What could be the best floor plan for the rental market? Which optimum floor to choose and which location?
Once you have selected the project, now is the time for you to choose the unit that suits you. This is where you are check out the floor plans, the views, the prices, and the floor premiums. Be reminded that the purpose of the purchase of the unit will determine your choice, whether for personal use of for commercial use. So, bear in mind all these information while choosing
4. Submit the worksheet or reservation form
You now new choose from 1-3 units that you preferred, inventory selling fast it is always better to give 1-3 preferred floor plans.
Submit this worksheet does not mean yet that you already purchase the condo. It only allows you to have access to the unit and you will have a limited delay to sign the agreement of purchase and sale.
5. Sign the agreement
Once the selected suite is approved by the builder. You will then have an appointment with the builder to sign the agreement of purchase. This usually comes with a $5,000 reservation deposit that will be considered into your down payment.
6. 10 cooling off period
You will have 10 days to review the agreement and confirm the purchase or not. If you decide not to purchase, the $,5000 deposit will be totally refunded.
7. Firm deal
Past the the 10 days, your agreement is considered final. Deposit will be cashed by the builder and you are now responsible to make arrangement for the future payment deposits.