Purchasing a New Condominium?
The purchaser should be careful while reading the Agreement of Sale and Purchase. These are not standard and vary from one builder to the other, and can result in last minute financial concerns for the purchaser. Following are items a purchaser should keep in mind when buying a new condominium from a builder:
- Hidden Closing Adjustments – The purchasers should read and confirm with the builder any adjustments to be settled at the time of the closing so that the purchaser can arrange for the amount accordingly. In many cases there closing adjustments that include costs such as initial reserve fund contribution, shared Hydro meter, and property tax estimates for the coming year.
- Inclusion of Floor Plan in the Agreement – It is advised that a floor plan that mentions the number of rooms in the unit and the total square footage be included as scheduled to the Agreement of Sale and Purchase. There have been cases where buyers have relied on promotional materials and end up with a property different from what was expected initially.