[Rocky]

Assuming that one has purchased a pre-con condo and is planning to sell the condo once its ready for occupancy, are there any chances that there could be a loss for the seller in the market as we have for today ? Lets say the buyer takes on the closing costs and what not, is it a better deal for the buyer to buy such condos that are up for sale or generally would it be smarter to get them from the builder directly.

I guess the situation i am in is where i have a condo that i have purchased which will be set for occupancy in 2012 however now as priorities have changed i wont be willing to move in it but would want to sell it, What should be the best course of action i should use to avoid from getting into loosing $$$ at least if not gaining any.

All suggestions are welcomed

 

[andrejeffry]

You don't own the property before or on the occupancy date, so you can not sell it.

You can only sell it after the property becomes officially yours, which is after the registration date, which may be 3-6 months (or more) after the occupancy date

 

[Rocky]

You don't own the property before or on the occupancy date, so you can not sell it.

You can only sell it after the property becomes officially yours, which is after the registration date, which may be 3-6 months (or more) after the occupancy date

6 months living in a Condo and selling it after - would that cause $$$ loss from the initial price that it was bought for ? i am not sure if condo prices appreciate or stays the same over the period of time ?

 

[cdr108]

6 months after living in a Condo and selling it after - would that case $$$ loss from the initial price that it was bought for ? i am not sure if condo prices appreciate or stays the same over the period of time ?

there is no guarantee that RE will rise, although you will hear the opposite from realtors and developers.

if you bought really early in pre-construction in the past 5 years, the odds are more in your favour; however, if you bought within the last 2 years it is questionable especially since you will have to pay for LTT, closing costs, occupancy fees, realtor fees to sell, etc.

you may be able to 'assign' the unit if the developer gives you permission.

 

[Rocky]

however, if you bought within the last 2 years it is questionable especially since you will have to pay for LTT, closing costs, occupancy fees, realtor fees to sell, etc.

you may be able to 'assign' the unit if the developer gives you permission.

wouldn't the LTT closing costs and occupancy fees etc apply to all pre-con condos regardless of the date of purchase ? I am not understanding how would the closing costs and other listed fees only effect if i have purchased within the last 2 years ?

 

[simuls]

wouldn't the LTT closing costs and occupancy fees etc apply to all pre-con condos regardless of the date of purchase ? I am not understanding how would the closing costs and other listed fees only effect if i have purchased within the last 2 years ?

Anyone who bought prior to certain dates in the last couple of years is grandfathered and won't have to pay the city of Toronto LTT. If I were you, I'd look at assigning the property to another seller in about 2 years - it's cheaper than going through all the closing and then having to hire a real-estate agent. You do run the risk of the property depreciating though. If you think you can get more by finding an assignment now (if the builder lets you), then do it. Although, even with an assignment, like a sub-let, you're still on the legal hook if the assignee takes flight.

 

[cdr108]

wouldn't the LTT closing costs and occupancy fees etc apply to all pre-con condos regardless of the date of purchase ? I am not understanding how would the closing costs and other listed fees only effect if i have purchased within the last 2 years ?

sorry for the confusion ... 2 yrs vs. 5 yrs had to do with price appreciation during the time that has passed and not with the items listed specifically ....

ie. if you bought 5 years ago, you might have made 30% appreciation on paper; however, if you just bought 2 years ago, you may be ahead by 10% only but if you close the purchase then sell vs. assigning prior to occupying/registration, then the associated costs would wipe out any paper gains.

 

[Urban Trekker]

Too Late for an Assignment?

I bought a pre-construction condo approximately 3 years ago. I did not pay to have an assignment clause put in.

The condo is scheduled to be finished in about 4-5 months.

I wanted to know if it would be too late to get the builder to allow me to put in the assignment clause. Would the price typically be considerably higher now that it is so much closer to the condo being completed?

Thanks!

 

[Seesus]

I bought a pre-construction condo approximately 3 years ago. I did not pay to have an assignment clause put in.

Thanks!

To add to that question, where is typically the assignment clause located? would it be somewhere in the agreement of sale document ? Is there a default of not having such a clause in any pre-con condos or would it vary from builder to builder !?

 

[dogbiskit]

When I bought my pre-sale, i had to negotiate to get the Assignment Clause included. There shouldn't be a cost to add it, in my case I would only pay a few thousand (~$3K) if I use it.

 

[vultur09]

The vagaries of the market are not something that anyone can predict with much accuracy despite Johnzzz's claim of constant appreciation,

However, it sounds like there will be a large number of units dumped on the market by non-residents in the next couple years! With rising unemployment, particularly among the youth, it puzzles me how anyone believes that values of condo units can continue to climb from these insanely low interest rate induced prices.

 

[cdr108]

The vagaries of the market are not something that anyone can predict with much accuracy despite Johnzzz's claim of constant appreciation,

However, it sounds like there will be a large number of units dumped on the market by non-residents in the next couple years! With rising unemployment, particularly among the youth, it puzzles me how anyone believes that values of condo units can continue to climb from these insanely low interest rate induced prices.

but we live in an island of rainbows and lollipops in TO amongst the global RE price adjustment.

 

[movieguy]

To add to that question, where is typically the assignment clause located? would it be somewhere in the agreement of sale document ? Is there a default of not having such a clause in any pre-con condos or would it vary from builder to builder !?

Buried in the purchasing agent agreement.
A good agent will advise you of it BEFORE purchasing and remind you, or ask your lawyer directly to look for it BEFORE the grace period.

 

[movieguy]

The condo is scheduled to be finished in about 4-5 months.

I wanted to know if it would be too late to get the builder to allow me to put in the assignment clause. Would the price typically be considerably higher now that it is so much closer to the condo being completed?

Thanks!

Depends on the project.

For a hot project, they don't want to help you with an assignment clause put in after the grace period, because they are more than happy for you to default, keep your deposit, and sell to the next person. If they did allow you to put in a clause after-the-fact, they'll ask for some compensation which mostly negates any monetary benefits for you.

Talk to your purchasing lawyer FIRST! Ask him about the clause.

Then go find a new agent because your old agent should've asked you about stuff like this! If an assignment is allowed, it can be listed and sold on the MLS. If you want to save money, negotiate with a real estate agent for just putting it up.

Don't waste your time with craigslist. I've tried and given up on it and feel stupid for not intuitively thinking it through. I'm going to trust hundreds of thousands of dollars to craigslist trolls? Never again.

 

[cdr108]

If an assignment is allowed, it can be listed and sold on the MLS. If you want to save money, negotiate with a real estate agent for just putting it up.

Don't waste your time with craigslist. I've tried and given up on it and feel stupid for not intuitively thinking it through. I'm going to trust hundreds of thousands of dollars to craigslist trolls? Never again.

AFAIK, an assignment will not be allowed MLS listing by most developers.

Funny that you would mention listing it yourself on craigslist ... i've seen many advertised there by realtors. It's just another marketing venue.