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Do you have to pay the full deposit right away?
No, for pre-construction properties the deposit is paid in multiple instalments. Payments are usually spread out over a period of time, sometimes as long as 15 months depending on the builder.
When do preconstruction properties close?
The closing for a preconstruction property can be anywhere from 1 year to 8 years depending on the type of property. For example, preconstruction homes close within 1-3 years, whereas preconstruction condos can take anywhere from 3-8 years.
What is the difference between occupancy closing and final closing?
Occupancy closing is where the Buyer must assume the occupation of the unit and pay occupancy fees, until after registration of the Condominium Corporation and the final closing. You would continue to pay this ‘rent’ until the final closing date, at which point your mortgage begins.
If I sign the contract do I have a cooling-off period?
You always have a cooling-off period when you sign a contract in your home. Other contracts may also have cooling-off periods. In those cases, you can cancel the contract for any reason within 10 days of receiving a written copy of the agreement.
Should I get a lawyer to review the purchase agreement?
Yes, you should always get a lawyer to review the documents to avoid disappointment, confusion and frustration. You should have a lawyer review the documents within the statutory 10-day “cooling off” period if the property is a condominium or before the Pre-Construction Contract is signed. Our company provides free lawyer reviews for the majority of preconstruction projects as a complementary incentive to our clients.
What will happen to my deposit in case the project gets cancelled?
In each deal, there is an agreement between the buyer and the developer, which contains a clause that outlines what should happen should the developer cancel. This is why the use of a reputable agent such as KAPS is important when entering an agreement, as we will know to look for in the clauses to ensure they are included and enforced. If you are to pay the builder directly and miss the clauses you will require the legal support of a real estate lawyer to file against the builder. The majority of builders provide a carry-on warranty which covers a good portion of your deposit.
Does the credibility of builders matter when buying pre-construction?
YES! Credibility is so important when buying preconstruction properties because you are buying a property before there is any physical building! You want a builder who knows what they are doing to ensure that the project does not fall through. KAPS Realty has amazing relationships with some of the top-rated builders in Canada. We make sure we only market projects where we know the builder has a reputable long history of the building and enough financing to see the project through. We do not work with smaller non-reputable builders to reduce the client risk.
What is the difference between Platinum vs VIP agents?
Platinum agents will have 1st access, lowest prices, best incentives, and the best selection of units for preconstruction properties. Platinum agents have had longer relationships with builders for many years and in order to reward them and their investors, they give them the first-day access. VIP Agents will have a smaller price increase and less selection than that Platinum Agents.
How can I increase my chances of getting a unit in the first round of the project?
Working with a Platinum Brokerage like KAPS Realty group, allows you to get better access to units as Platinum agents are allocated a number of units in the project before anyone else. Also, by sending us your floorplan choices, bank drafts, and worksheets before the worksheet submissions open, you can increase your chances of getting your choice floorplan.
If I’m interested in the project what are the next steps?
Send us a copy of your ID, your choice floorplans, your contact information, and a bank draft! Providing this information does not guarantee you a unit but the sooner you submit the higher the chance, as we sell the unit to those on our waitlist on a first come first serve basis.