I have questions about buying a new condo?

• What is the process to purchase a pre-construction condo?

  1. Selecting the project with your real estate broker

  Selecting the unit based on your personal needs to live in or invest. Review the floor plans, the amenities you need and how the suite fits in your budget.

  2. Sign a purchase agreement with deposit

  Usually deposit a 3-5K down to reserve the suite, The amount will be deducted from your down payment.

  3. 10 day rescission period

  Time for you to review everything with your lawyer as to get approved with your bank or mortgage broker.

  4. Deposit the balance left required

  Once the cooling off period is done, the deal goes firm and you should prepare postdated cheques based on the deposit structure required

  5. Close the deal at the notary

  This is done only and only when the project is 100% approved and delivered.

• What is the 10 day rescission period?

  The 10 rescission period is the time the builder gives all buyers a 10 day reflexion to review the agreement but also to look for a pre-approval with your bank.

  We suggest all buyers to do the following:

  • Review the purchase agreement with your real estate lawyer
  • Get pre-approved with your bank

  If anything does not look right, you will be able to cancel the purchase without fees. This 10 day rescission period is also known as “Cooling off period”

• When will I need a mortgage for pre-construction condos or house?

  Even if you need to be pre-approved with your bank when you sign the purchase agreement, the mortgage will only be needed once the project is completed and delivered by the builder.

  Once it is delivered you will have a pre-inspection of your unit and will go to the notary 10 days later with your final mortgage.

• What is the minimum deposit required for pre-constructions condos?

  The most common down payment required from a builder is 25% made progressively. Depending on when you buy the pre-construction condo this is usually as the following:

  • $5,000 at the signature
  • 5% balance in 10/30 days
  • 5% in 90 days
  • 5% in 180 days
  • 5% in 270 days

  This always depends on the project, the builder and the purchase timing. Please consult us to have the most updated pricing and structure.

• What is a condo assignment?

  A condo assignment is when you sell your condo before it is completed or before you take possession.

  The time between when you purchase your condominium and when you take possession can range from 1-6 years depending on a number of variables (size and scope of project, how late in the cycle you purchased etc.). Until the possession date, there is no actual “ownership” of the condominium, therefore you are simply “assigning” the rights to the condominium to a new purchaser..  Many pre-construction condominiums offer an assignment clause for a small administration fee.

  The benefits of an assignment are:

  • Sell before you close
  • No need to get a mortgage
  • Potential to get original deposits and profits and “cash out”

  The drawbacks of an assignment are:

  • Most developers do not allow you to post your assignment listings on MLS, making it trickier to market and find potential buyers.
  • No two assignment deals are ever the same which increases the complexity of the deal
  • If the new buyer is unable to close on the condominium for whatever reason, the original purchase remains responsible to close.

  Note that any assignment should respect the builder’s conditions that will be written in the preliminary contract that you sign.

• Do I need to be in Canada to purchase or or buy my condo?

  A condo purchase can be made with a legal procuration made with your lawyer. However, depending on the project it might be possible to provide an additional power of attorney or specific letter.

  If you need to be out of the country or if you are a foreign investors, you can easily give a procuration to someone who will be able to buy your condo.

  The procuration will give the following rights to the holder:

  • Sign a purchase agreement
  • Make deposit on your name
  • Get pre-approved and approved with your bank
• What are the closing costs when buying a pre-construction condo?

  Typical closing costs when you invest or buy a condo in Toronto or Montreal:

  • Lawyer or notary cost which can range from $500 to $2,000
  • Welcome taxes (Quebec) or Land Transfer Taxes (Ontario) which is based on average of 1% of the municipal value. In pre-construction condo in Quebec, since there is no history you will typically receive the welcome taxes a year after your purchase.
• What is the deposit structure payment when buying a condo Toronto or Montreal?

  This always depends on the project and the time you buy your pre-construction house, but here are the typical deposit structure we see in Montreal.

  • $5,000 at the signature
  • 5% balance in 10/30 days
  • 5% in 90 days
  • 5% in 180 days
  • 5% in 270 days
• When is the best time to buy or invest in a pre-construction condo?

  The earlier you get in the project the better is.

  You typically have phases for pre-construction condo:

  • Private launch: Only a private network or selected brokers can bring their clients. This is when you get the best pricing and units since you are the first one to purchase.
  • Pre-construction launch: The builder officially launch the project and try to get as many sales he needs to start building the project. The builder which is usually approved to build will show their sales at the bank.
  • Public launch: A bunch of suites have been already bought and the pricing usually increased from the beginning.
• Can we negotiate the price with pre-construction builder?

  Typically speaking – no.  However, every situation is different and open to negotiation depending on different criteria as your buying power or the selling phase the builder is.

  The best way to get the best units and better deals is to go with a platinum agent who have premium access and relationship with the builder.

• Do all agents have the same access to pre-construction condo?

  No, there are “Platinum agents” but the reality is that some agents have better tracking sales record and relationship who allow them to have this “premium” access while other don’t. Make sure you work with an insider condo broker.

  Contact me to get your premium access for the project you are interested.

• Why should I buy a pre-construction condo VS resale?

  Investing in condo or pre-construction condo is very popular in Toronto and Montreal. The reasons why it is so popular and why you should invest in a condo are the following:

  • PRICING: Regular financial regulations forces the developer to have a minimum of pre-sell 70% of the building before they can build. This also explains why it is safer to go with a successful developer who have big financial power to build without it and make sure you will see your unit at the end of the project. On the investment side, this means that investors can take advantage of current market pricing for a product which will be delivered in 3-5 years.
  • GRADUAL DEPOSIT: Investors are able to invest with low deposits (20% to 25% in Canada as opposed to 50% to 75% in the U.S.A.)
  • LEVERAGE: Huge opportunity for leveraging and “interest free investing” for the duration of construction
  • CHOICE OF FINITIONS: An increase in quality of construction and amenities
  • EQUITY: Equity is built the first you sign at the notary since you purchase a condo under market value. You can then leverage this equity to refinance and grow your portfolio.

I am non-resident and I want to invest , how does that work?

• I am a foreign investor, what do I need to know ?

  As a foreign investor :

  • You have the right to purchase property in Canada as non-resident
  • You also have the right to get financing in Canada with a Canadian bank even as a non resident
  • Usual minimum downpayment required is 35%, however some banks and financial institution can have limited program and decrease this downpayment. Consult us to be connected with our top mortgage brokers.
  • Depending on the bank you are dealing with, you can buy up to 4 properties under your name

  Dealing with non-residents clients that benefits from our turnkey condo management solutions, we are confident to help you in your condo investment.

• How do you select your condo projects?

  We focus on condo project with :

  • Under market value
  • Positive cash-flow
  • Growth appreciation
• Will you manage my condo if I can't do it ?

  Yes, we offer turn-key investments to our clients.

  You own your assets and we do the rest.

  • We advertise your condo
  • We select the tenant
  • We collect the monthly rent
  • You get your money on your banking account

  We charge 5-7% of the rental income.

I want to rent my condo, how can you help?

• How does it work?

  Call us to get an appointment.

  We will evaluate your condo, take pictures and advertise it to our network.

• How much do you charge if you rent my condo ?

  If you only want us to find a tenant, we charge one month rent + taxes.

  If you want us to manage the property, we will charge from 11% to 15% fees, excluding the marketing expenses.

• How will you select the tenant ?

  We will present you tenants with their credit score, letter of employment and postdated cheques.

If you did not find your answer, feel free to ask your question at the right of this page. We love helping condo buyers and investors to buy, sell and rent their condo in both Toronto and Montreal. Send us a message.