[kennyx]

Just about to buy a unit in a project that's currently under construction. Since this is the first time I've ever bought a condo (or any residence for that matter), just wondering if there's a resource somewhere that 'lists' what you need to do? (or can someone please explain the steps?)

Basically, after I head down to the sales office, pick a unit, try and negotiate for upgrades, etc... After I sign the contract what are the next steps (or should there be a step beforehand?).

Im assuming during the 10day cooling off period, you need to find a real estate lawyer that checks over the contract (and does filing?), and possibly find a bank/lender that will say you have the money to pay.

After that, what else is there? Do you need any other parties (or are there any other steps afterwards)? Or do just wait until your move in date and do the PDI?

thanks!

 

[gei]

Just about to buy a unit in a project that's currently under construction. Since this is the first time I've ever bought a condo (or any residence for that matter), just wondering if there's a resource somewhere that 'lists' what you need to do? (or can someone please explain the steps?)

Basically, after I head down to the sales office, pick a unit, try and negotiate for upgrades, etc... After I sign the contract what are the next steps (or should there be a step beforehand?).

Im assuming during the 10day cooling off period, you need to find a real estate lawyer that checks over the contract (and does filing?), and possibly find a bank/lender that will say you have the money to pay.

After that, what else is there? Do you need any other parties (or are there any other steps afterwards)? Or do just wait until your move in date and do the PDI?

thanks!

I would go into the sales centre, and register using a fake name. Sit down with a salesperson and ask if they are willing to add extra discounts or upgrades if you are purchasing without a buyers agent (buyers agents are pretty useless when buying a new condo in your situation).

If they won't give you anything extra, come back with a buyers agent. They don't really do anything.. but since it costs you nothing, it doesn't hurt. You can go into your bank before any of this and get a pre-approval for a mortgage in the price range you are looking at... I believe that's all the seller needs to see. And finally, yes it is advisable (although not mandatory) to have your lawyer look over the agreement.

 

[BobBob]

In addition to upgrades, you should try to negotiate closing costs and the deposit schedule. Usually they'll be okay with giving you some extra time for the latter.

 

[MADEinHK]

Hope the below links will help you to know the steps for First Time Home Buyer.

A Condo Buying Guide for First Time Home Buyers

http://www.tridel.com/first/index.php

http://www.cmhc-schl.gc.ca/en/co/

In regards to the closing fees (interim closing and final closing) for new condos, you might pay approx. 3% or more of your purchase price.
-Lawyer fees and Disbursement Fees
-Development charges or Education Development charges
-Land Transfer Tax (i.e.: Purchase price $300,000, Total LLT is $5,700 = Ontario $2,975 and plus Toronto $2,725 - if your unit is at City of Toronto)
-Tarion's New Home Warranty
-Hidden costs: (Hydro & Water meters connection fees), Some Builders will charge three months of the monthly maintenance fees for reserve funds (Non-Refundable)): Actually, Daniels Home builder is charging the 3 month maintenance fees for their current projects at final closing.
-Property Tax adjustment or you might need to prepay it at final closing.
-Monthly occupancy fee if you have interim closing.
-Please read the Agreement of Purchase & Sale carefully within the 10 day cooling period. It's worth to hire a "Real Estate" lawyer go through the agreement with you in order to help you understand all the terms before the 10 day cooling period expiry. Sometime your lawyer can ask the builder to change some clauses or terms on the agreement for your own benefit.


Current City of Toronto Development Charge Rates:
Unit Type/Category January 1, 2008 to December 31, 2008
Residential Development Charge Per Unit
Single detached and semi-detached dwelling $11,082.00
Apartment unit- one bedroom and/or bachelor $4,467.00
Apartment unit- two bedroom or larger $7,187.00
Multiple dwelling units $8,819.00
Dwelling Room $2,864.00
Non-Residential Development Charge Per Square Metre
Retail Use Only (per sq m of GFA) $88.98

What are Development Charges?
Development Charges are charges imposed by the City of Toronto used to fund growth-related capital costs. Development Charges assist in funding the following services: Childcare, Fire Facilities, Shelters and Housing, Police, Emergency Medical Services, Roads, Parks and Recreation, Transit, Urban Development Services, Sanitary Sewers, Development Related Studies, Water, Library, and, Storm water Management.


I would suggest you to find a real estate professional agent to assist you buy your first home but this agent must has the knowledge to help you ask the right questions. A qualified and competent real estate agent will help you navigate the myriad of decisions that arise when buying a condo. An agent will provide value to you in many ways.

 

[kennyx]

great... thanks for the help guys.

 

[cdr108]

Current City of Toronto Development Charge Rates:
Unit Type/Category January 1, 2008 to December 31, 2008
Residential Development Charge Per Unit
Single detached and semi-detached dwelling $11,082.00
Apartment unit- one bedroom and/or bachelor $4,467.00
Apartment unit- two bedroom or larger $7,187.00
Multiple dwelling units $8,819.00
Dwelling Room $2,864.00
Non-Residential Development Charge Per Square Metre
Retail Use Only (per sq m of GFA) $88.98

What are Development Charges?
Development Charges are charges imposed by the City of Toronto used to fund growth-related capital costs. Development Charges assist in funding the following services: Childcare, Fire Facilities, Shelters and Housing, Police, Emergency Medical Services, Roads, Parks and Recreation, Transit, Urban Development Services, Sanitary Sewers, Development Related Studies, Water, Library, and, Storm water Management.

MADEinHK, aren't Development Charges already incorporated into the developers' selling price for the unit?

 

[MADEinHK]

Sorry for the confusion from previous note.

Development Charges – As indicated in the Agreement of Purchase and Sale, the City of Toronto Development Charges in effect as of March 1, 2004 are included in the purchase price, with the Purchaser being responsible for any increases after that date. Once a full application for a building permit is submitted, these charges are fixed in the amounts in effect on the date of the application, thus ensuring the Development Charges will not increase after that date. The climate of the municipal government indicates that these charges could continue to rise in the future.

The Purchase Price includes all development charges, municipal charges, education development charges, levies, imposts and other like municipal and government charges (collectively the “Development Charges”) in effect as of March 1, 2004. If such Development Charges increase on or after March 1, 2004, whether by the increase in existing Development Charges or in the imposition of new Development Charges any such increase shall be paid by the Purchaser to the Vendor on the Closing Date together with all GST payable in connection therewith.

 

[andrejeffry]

Just about to buy a unit in a project that's currently under construction. Since this is the first time I've ever bought a condo (or any residence for that matter), just wondering if there's a resource somewhere that 'lists' what you need to do? (or can someone please explain the steps?)

Basically, after I head down to the sales office, pick a unit, try and negotiate for upgrades, etc... After I sign the contract what are the next steps (or should there be a step beforehand?).

Im assuming during the 10day cooling off period, you need to find a real estate lawyer that checks over the contract (and does filing?), and possibly find a bank/lender that will say you have the money to pay.

After that, what else is there? Do you need any other parties (or are there any other steps afterwards)? Or do just wait until your move in date and do the PDI?

thanks!

1. find a lawyer first
2. Get pre-approved from the bank
3. After the first two, walk into the sales office
4. Bring the purchase agreement to your lawyer, discuss the addendums you want to put in, such as change of (non-structural) floorplan lay-out, put restriction on how long they can delay the unit, or even how much downpayment you want to put in. (yeah I've done all those changes I mentioned). Ask your lawyer what else can be changed in the agreement to your advantage. Negotiate! negotiate! negotiate!
5. if your priority addendums are not accepted to the builder, be ready walk away. Most likely they will budge and try to accomodate you

 

[lowesthangingfruit]

Ask your lawyer what else can be changed in the agreement to your advantage. Negotiate! negotiate! negotiate!
5. if your priority addendums are not accepted to the builder, be ready walk away. Most likely they will budge and try to accomodate you

Agree, nothing is set in stone until both parties sign on dotted line.

Or if you can wait out a bit longer,....you will most likely have more negotiation leverage in say a years time as the balance swings more in favour towards a buyers market.

 

[BobBob]

Or if you can wait out a bit longer,....you will most likely have more negotiation leverage in say a years time as the balance swings more in favour towards a buyers market.

In a way, that's a bit of a self-fulfilling prophecy. If everyone "waits out a bit longer", of course the market will drop as demand dries up.

As always, you should buy what you need and what you can afford, and what you'll be happy with. Trying to time the market, and to organize your life around real-estate reports, is a thankless task.