[69Tequila]

Hi All,

I am in need of some help. I am a first-time condo buyer, and I'm not sure how to go about negotiating with the builder (salesperson, actually) for the upgrades I want in my unit. Here is my situation:

I made the deposit on my own to the salesperson. In the Condo plans booklet, they advertise "engineered hardwood floors" as a standard feature. It turns out that the suites actually come with polished concrete floors, and that hardwood is an upgrade. However, my friend who went to the sales room separately from me, was offered hardwood floors for free if she signed up right away. I didn't hear about this until after the fact (after I had already put down my deposit and accepted that I'd have to pay for the hardwood upgrade...)

I can't help but feeling a little bit taken advantage of. I guess the lesson is I should have taken somebody with me who is an experienced buyer, and who can negotiate.

Is it too late for me to do anything about this? I am still in my 10-day cooling off period. SHould I call the sales rep and tell him I want the hardwood floors upgrade? They promised it in the advertisement, after all, and they promised it to my friend for free. What other upgrades are salespeople usually allowed to throw in? What should I ask for??

THanks a lot for your help,

-New COndo Buyer

 

[rbtaylor]

Your 10 day period is usually the time for negotiating details in the contract. They will give you a couple of items to make you feel good about the purchase, be it capping some adjustments, fiddling with the items excluded from the warranty, or requesting other changes.

Have the lawyer that is reviewing the P&S for you put together a letter to the sales office listing out the changes you want. They will agree to some of those changes.

 

[69Tequila]

Great, thank-you so much.

What are some changes you think would be worthwhile for me to ask for? Things that first-time buyers usually don't think about and end up regretting later? Can anyone think of any off the top of their head?

Thanks

 

[rbtaylor]

What are some changes you think would be worthwhile for me to ask for?

This is what your lawyer should be telling you. Every developer shoves in different gotchas. Getting legal advice from a web forum is generally a bad idea.

For all you know I could work for that developer and be leading you away from the big problems.

 

[shmoopie nhi]

Get your development fees/levies capped. This will minimize the surprises at closing. Your lawyer can help with this.

As for finishes, ensure your Schedule B (or whichever the finishes list is) lists all the features mentioned in their advertising, including the hardwood flooring. They should give you this at minimum. If you looked at a model suite and a sales rep implied that some of those finishes were standard, be sure to get that on there too. If you're particularly attached to appliances, make sure the brand names you saw are listed in the agreement. You may not get a Viking stove in the kitchen if it's not specified in your agreement.

The only other thing I can think of is the payment schedule for upgrades. Some builders want all the money upfront, others will let you pay half now, half later. Depending on the stage of the project, they might be agreeable to this, so see if you can get that deposit structure in the agreement too.

If you're running out of time, have your lawyer request an extension to your 10 day cooling off period so you have enough time to have these issues addressed. Builders are usually agreeable to this as it means you're not planning to rescind.

 

[mattrx]

In order to keep your options open, since I am assuming this is a pre-construction unit, you may also want to ask for:

- The option to lease/rent your unit during the occupancy period. Usually this isnt allowed unless you specifically ask for it.

- The option to assign the title of your unit to someone else during the occupancy period, again this isnt usually included in a purchase agreement unless you ask for it. This will allow you to "sell" your purchase agreement to someone else if for whatever reason you chose not to move into your unit, with this clause you will not have to wait until the building is registered to do this. Technically this is not selling your unit, but thats another story ...

 

[69Tequila]

Thanks again.

According to my lawyer, builders do NOT need a letter from a lawyer to negotiate on these contracts. They say they do, because they know that the buyer will be less likely to want to negotiate (given they would have to pay the lawyer's rate to get them to write a letter/negotiate). My lawyer also says they have capped costs in mind that they can offer to you, if you ask.

I am going to meet with the sales rep again tonight. Wish me luck!!

 

[rbtaylor]

According to my lawyer, builders do NOT need a letter from a lawyer to negotiate on these contracts.

That, of course, is true. In fact, if you take the right agent/broker with you they would have had the standard set of amendments attached before you signed the agreement. It's often drawn up and sitting in the sales agents desk already.

Simply put, the process can go quite a bit smoother when you have someone in the industry doing this stuff on your behalf.

 

[roch5220]

Simply put, the process can go quite a bit smoother when you have someone in the industry doing this stuff on your behalf.

The right lawyer, the right threats, with all correspondance going via registered mail + to both the builder and the sales office seems to be a great mix for me.