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A New Purchaser of a Condo Under Construction

A New Purchaser of a Condo Under Construction In the pre-construction real estate market, an assignee is the new buyer of a home or condominium who has legally transferred the contract for that property through an assignment sale. A contract for a yet-to-be-built property is being offered for sale or assignment by the original buyer to a potential buyer (or assignee). At this point in time, the buyer assumes full legal responsibility for the contract’s ongoing performance. The seller (assignor) has transferred the contract to the buyer (assignee), who is now legally bound by the terms of the agreement. Consequently, the assignee is the buyer in an assignment sale and, in the end, the legal owner of the house. Catherine wants to find a new place to live just outside of Toronto, where she presently resides and works, so she talks to her real estate agent online about possible pre-construction townhomes in Vaughan. Her real estate agent recommends a new townhouse in the city, one that is convenient to a wide variety of services and transportation alternatives. Free parking is provided, and homeowners association dues are inexpensive. Catherine is in luck because the sale of the unit is an assignment prior to construction, which means she can haggle for a lower price and potentially save a lot of money. The home, neighbourhood, and sales incentives are all appealing to Catherine. She gets an excellent price reduction and signs the contract to buy the new townhouse. In this transaction, Catherine is the new buyer, or assignee, of the pre-construction contract. She takes over the ownership of the pre-construction contract and assumes the assignor‘s rights and obligations under the agreement. To rephrase, once the assignment sale closes, Catherine will be the official owner of a brand-new house.

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Positive Aspects of Making a Pre-Construction Purchase

Positive Aspects of Making a Pre-Construction Purchase In addition to saving yourself four years or more of waiting for new pre-construction, negotiating the purchase price, and securing a brand-new, never-lived-in home with full Tarion guarantee, there are a number of other advantages to purchasing a pre-construction assignment unit shortly before closing. Laura wants to buy her first home. After landing a job in Toronto this fall, she plans to relocate there. Due to the high demand in the city’s real estate market, most resales result in bidding wars and sell for significantly more than the asking price, and a pre-construction condo is unlikely to be ready for occupation when she needs it to be. Laura’s real estate agent has suggested that she consider purchasing a new home that is listed as a pre-construction assignment. Laura may want to look into purchasing a pre-construction unit if the listing date is several months before the unit is actually ready for occupation. Her real estate agent explains all the advantages of owning an assignment that she can take advantage of. Laura is able to take advantage of the price-negotiating feature. If Laura purchases a condo during the pre-construction assignment period, she will be able to save a lot of money. The current status of the real estate market leaves little room for haggling over the purchase price, whether it be a pre-construction purchase or a resale. Laura can save a lot of money by negotiating a favourable assignment sale directly with the contract’s seller. Laura can save even more money by making an offer below market value, as the initial buyer may be in a hurry to close the deal and be more receptive to counteroffers. Many people in the market for a new or replacement residence know very little about assignment sales. Developer limits on advertising and marketing of the contract make it more difficult to find these transactions. Since fewer people are aware of these listings, Laura’s agent thinks she has a better chance of securing the apartment she wants without having to engage in a competitive bidding war. Without making a purchase during the exclusive “VIP sales” time of a new development project, Laura is treated as if she were a celebrity. When Laura buys the assignment, she will be entitled to all of the perks that were promised to the original buyer, such as free parking, a free locker, appealing dollars, closing credits, and so on. Laura also receives the enormous perk of relocating to a brand-new, never-before-occupied house. Laura is completely at ease with the purchase because no one else has used the bathroom or the appliances and because they normally come with a full Tarion guarantee. And depending on where things stand with the building of her actual unit, she may still be able to go to the design centre and select her own designs, amenities, and finishes, making her new home truly her own. Another perk for Laura is that she can move into her new place earlier if she buys rather than leases, as assignment sales are typically advertised for purchasing closer to interim possession. It typically takes about four to five years from the start of pre-construction until a high-rise building is ready for occupancy. By opting to buy an assignment, Laura’s new house will be ready for her to move into in months rather than years. Get in touch with a Certified Expert immediately if you’re thinking of buying a pre-construction home through an assignment listing, or if you’re just curious about how they work and how they can benefit you in your home search.

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How to Sell a Pre-Construction Condo

How to sell pre-construction condo It is the obligation of the original buyer to abide by the conditions of the Purchase and Sale Agreement. At the conclusion of a pre-construction assignment sale, the new buyer takes over the obligations. Due to the complexity involved, the process must be closely monitored till completion. For instance, an individual is trying to unload the contract he signed three years ago for a one-bedroom condo in a downtown Toronto building that is nearly ready for occupancy. He decides to consult with a real estate agent who specialises in pre-construction assignment sales as well as a pre-construction attorney who has experience with assignment sales so that he may fully understand his legal obligations before, during, and after the transaction. The concerned person should check with the developer and his purchase and sale agreement before advertising the contract for sale. Next, he must follow the specific guidelines his developer has set down in the contract for assignment sales. His developer has specified in the contract that he must pay the developer’s administrative and/or legal fees if he assigns the pre-construction contract for the unit in dispute. Finding a buyer for the contract is now his responsibility as well. That individual further plans to get the sale advertised on venues where interested parties congregate by engaging the aid of a real estate agent who specialises in pre-construction assignment sales. The seller’s continued participation is essential because he is the one who decides on the selling price (and whether or not he is open to bargaining) and who must approve the final sale price. The person will no longer be the owner of the contract for the unit once the pre-construction assignment sale is finalised and the contract is passed to the new buyer. He is no longer entitled to any of the benefits promised under the contract or the use of the unit in question. The new owner is responsible for all fees associated with the pre-occupancy, closing, and mortgage. However, he needs to be wary because he might be held responsible for the new home’s costs and obligations if the new buyer defaults on the contract. Typically, the individual will collect his earnings once the closing has been completed and the new buyer has obtained the title to the property. Seller’s rights and duties are a significant factor to consider when selling an assignment during pre-construction.

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Testing for Radon: 5 Frequently Asked Questions

Testing for Radon: 5 Frequently Asked Questions Certainly, you could have heard anything about radon before. You might even be aware that excessive levels of this naturally occurring gas can be harmful to your health if allowed to accumulate within your home. That’s a fantastic place to begin. However, if you’re worried about the security of your home and just know that much, you’re missing out on important information. Radon levels in a home can only be determined by conducting a test. Learn the answers to some of the most frequently asked questions regarding radon testing and take your radon knowledge to the next level. When should one conduct a radon test? Taking a radon test in the fall or winter will give you the most reliable estimate of how high the radon level is in your home. When we close our windows to block out the chilly air, we also reduce the airflow through our homes, which can lead to radon buildup. Therefore, this November is a great opportunity to start planning how you will address the risks posed by radon in your house. how do I run the test? It’s possible to pick from a few alternates. A DIY test kit is available at most hardware and home improvement stores. You might also visit your neighbourhood library (yes, you read that right). Borrowing radon detectors is possible from a wide variety of provincial libraries. Finally, if you opt to have a third party perform the test for you, double-check that they are a member of the Canadian National Radon Proficiency Program. If my numbers are higher than the Health Canada threshold, what happens then? Your radon levels should be reduced as quickly as possible if they are higher than Health Canada’s recommended level of 200 becquerels per cubic metre. In a fortunate turn of events, radon mitigation services can be found readily and at a reasonable price. If your home is less than seven years old, the new home warranty will pay up to $50,000 for radon mitigation costs. If you want to know how to receive help from the warranty service for the radon problem, click here. Can I skip the test if I just bought a new house? Yes is the short and straightforward answer. To find out if your new home has high radon levels, you should have the soil tested as soon as possible because radon is more related to the soil underneath your home than the age of your property. If you need to lower radon levels, you’ll be happy to know that many brand-new homes already have rough-ins for mitigation systems. What if my home has low radon levels? You don’t need to take any action to reduce radon if your levels are below the Health Canada limit of 200 becquerels per cubic metre. The key is to keep an eye on them throughout time because of the potential for change. After around five years, experts advise repeating the exam.

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Paperwork requirements for pre-construction homes

Paperwork requirement for pre-construction homes It takes a significant amount of trust and dedication to purchase a house or condo before construction has even begun. If you’re buying something online without seeing it in person first, you’re putting your faith in the builder to deliver exactly what you ordered. There will, of course, be much paperwork involved with a deal of this size. Even if you haven’t broken ground on your new house or condo yet, it’s still in your best interest to familiarise yourself with these contracts so you can make an educated purchase and safeguard your investment. Your purchase agreement is the most crucial document because it is a legally binding contract between you and the builder. You may feel intimidated by this lengthy document full of legalese if this is your first time purchasing a home. However, there are three essentials you should look for and make sure you fully grasp. Addendum Pre-construction homeowners and condo buyers frequently have worries regarding the completion date of their property and the consequences of any delays in construction. As such, an annex is necessary. Your closing or occupancy date and the maximum amount of time your builder can delay it for are specified in this agreement. With sufficient written notification, your builder is within their rights to push out the closing date for your property based on the sort of closure date agreed upon in the Addendum. Check out Tarion.com for further details on possible compensation and notification periods in the event of delays. You can find out how your deposit will be handled in the event of a purchase agreement termination and what those conditions are in the addendum. Specifications Sheet for Warranties You must be aware of the specifics of your new home warranty in order to safeguard your investment. Newly constructed homes are required, as of February 1, 2021, to include a warranty information page with each sales contract. This sheet is specific to the home being sold, making it easy to understand and read, and informing buyers of the vital coverage to which they are entitled. It briefs buyers on the fundamentals of warranty protection (such as deposit protection and reimbursement for closing or occupancy delays), stresses the significance of the pre-delivery inspection, and points them in the direction of further resources for learning more. Details about Condominiums Brochure An information sheet outlining the pros and cons of purchasing a condominium must be included in any purchase agreement for a condominium unit. For instance, it details early termination circumstances that would allow a builder to cancel a project and the possibility that pre-construction condominium developments may never be finished. Buyers should be informed of the following: The status of the project (e.g., zoning permission, date of commencement of building); Any restrictions on the builder’s land title that may prohibit the project from going forward; A buyer’s right to terminate a sales agreement within 10 days; and, The estimated date when a buyer can take occupancy of their condominium. There’s no denying that there’s a lot of paperwork involved in buying a new-construction house or apartment. However, it is essential that you are an educated purchaser; a competent real estate attorney can walk you through the paperwork and provide you much more assurance and peace of mind.

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New data reveals Canadian rentals exceed $2K for the first time

New data reveals Canadian rentals exceed $2K for the first time In November, the average rental price in Canada topped $2,000 per month, according to a survey issued on Wednesday. Based on the numbers provided, it appears that renters in Canada are forking over an average of $2,024 monthly to cover their housing costs. This number includes anything from studio units to mansions. That’s a 12.4% increase from the same month a year ago, which is far higher than Canada’s inflation average of 6.9%. Vancouver has the most expensive one and two-bedroom rents in the country, at $2,633 and $3,598 per month. It was the second most expensive to rent in Toronto. The median monthly rent for a one-bedroom in the city is now $2,532, up 23% from the same period last year. According to the data, the median monthly rent for a two-bedroom unit is $3,347. Rental costs rose dramatically in other GTA municipalities as well. The cost of living increased by 28% in Brampton and by 19.2% in Mississauga compared to the previous year. Monthly rents in smaller areas west of the GTA also rose, by as much as 27.9% in London and 24.1% in Kitchener. Only one Canadian city, Halifax, had a higher median rent than the cities of British Columbia and Ontario combined. In Burnaby, British Columbia, tenants paid a whopping 32% more for a one-bedroom flat in October 2018 than they did in October 2021. The survey found that rising rental prices have shown no signs of slowing down. Since May, year-over-year increases have been in the double digits, with November’s increase being the largest yet. In a press statement, Urbanation president Shaun Hildebrand said, “Rents in Canada are rising at an extraordinarily fast speed, which is having a dramatic effect on housing affordability as interest rates continue to rise.” “Demand is shifting to more inexpensive locales in regions with rapid population growth,” the article states, because “the most costly cities are experiencing very low supply and the quickest rates of rent increase.” Nova Scotia, Newfoundland and Labrador, New Brunswick, and Prince Edward Island had the fastest annual rate of increase in rental prices, at a combined 31.8%, out of all of Canada’s provinces and territories. There was an average monthly cost of $1,716 for a one-bedroom apartment in Atlantic Canada in the month of November, while $2,032 was the average for a two-bedroom. The survey found that rent rises were slowest in Montreal, despite the fact that it is Canada’s largest rental market. Builders are cancelling ventures, and investors are afraid to put money into future real estate projects because of the high costs of borrowing. “Investment in real estate, especially in the condo area, loses some of its appeal as interest rates rise,” Tal added. So, “if you don’t have those units, that’s another factor pushing up the cost of renting what’s left.” The rising cost of rent is “becoming unaffordable” “We’re getting near to the point when rents are just becoming prohibitive for tenants,” said, Hildebrand. “It appears that a downturn in economic activity may begin sometime in the coming year. It follows that rentals may see a temporary lull in 2023 “the head of Urbania remarked. However, it is very evident that rents will continue to grow higher in the medium to long term due to strong immigration targets and rental building that has been halting recently due to high costs. When the weather turns cold, Hildebrand says renters should start looking elsewhere. There are fewer potential tenants, therefore landlords are often willing to negotiate a lower monthly payment in exchange for your business. Hildebrand argues that governments might introduce incentives to develop purpose-built apartments and make new rental projects more economically feasible, although this won’t help in the immediate term. Rentals.ca’s head of content, Paul Danison, has said that governments need to be more innovative with their zoning policies. One possible use for these buildings is as lofts with amenities like cafes, shops, and galleries. Alternatives he suggests are inclusionary zoning, laneway suites, and infill construction. There are responses to this problem, but governments are moving too slowly.

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Discover before building

Discover before building You’ve been looking for a new place to call home for what feels like forever, but nothing is quite right. Instead, you’ve made up your mind to commission the construction of your ideal house on land you already own. Even while well-meaning relatives and neighbours may offer to help by recommending builders, you should seek out expert guidance to safeguard your investment before any ground is broken. Consultation with an experienced real estate attorney who is conversant with contract homes is a smart choice to ensure that your rights are safeguarded in the contract you sign with the builder. Verify the builder’s credentials before hiring Whether the prospective builder you wish to hire is licenced should be your first step. Before constructing or selling a home, a contractor must first register with Tarion. That a builder has the resources and expertise to see the project through to completion and back it up with warranty coverage is just one of the requirements for registration. It is unlawful to construct without being registered with Tarion, thus if they are doing so, they have not been properly verified. Put your deal in writing You and the builder should have a binding agreement outlining the scope of work, the costs, and the timelines for both construction and payments. Having a written agreement might strengthen your position in the case of a disagreement. Tarion can help you out if your builder stops functioning on your house or if there is a serious disagreement during the building process. Tarion may award you compensation if you can prove that your builder did not provide the services promised in your contract. What happens if the cost of the construction exceeds the money you paid for it?

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A Guide for interim occupancy

A GUIDE FOR INTERIM OCCUPANCY In some cases, pre-construction condo buyers will be allowed to move in to their finished unit before the rest of the building is ready. This is known as “interim occupancy,” and it is permitted until the city has determined that the building is secure for occupants. Condo buyers often misunderstand the distinction between temporary occupation and ownership. Occupancy does not automatically imply ownership. Although you may be able to move into your unit before construction is finished and the condominium is registered with the municipality, you will not get title to the unit until after these two steps have been completed. For more information on what to look out for while purchasing a condo in the pre-construction phase, please visit our site. Interim Occupancy Time The duration of a temporary tenancy may range from a few weeks to a whole year. How long you have to wait until you can move in permanently depends on how far along in construction you were when you gained possession of your property. When the local government finds that your dwelling is “fit for occupation,” it will issue a certificate of occupancy. Occupancy compliance with the Ontario Building Code does not equate to full completion. If the builder grants you interim occupancy, it will be because you have an occupancy permission. You are not required to occupy your unit during the interim period, but you may if you so desire. It is possible that the building’s common areas and other units will be undergoing renovations at the same time as your occupancy, so you should be prepared for some noise and inconvenience. As development continues, you’ll be able to stay in the building during this interim occupancy term until the condominium is officially registered. The interim occupation charge Whether or whether you live in the unit during the interim occupancy term, you will still have to pay a monthly fee to the builder. Interest on the remaining amount of the purchase price, predicted monthly municipal taxes for the unit, and projected common cost fees are all factored into this interim occupancy charge in accordance with the Condominium Act’s provisions. The interim occupancy fee is not a reduction in the ultimate condo purchase price but is due and payable only during the interim occupancy period. You can think of your interim occupancy fee as rent. Taking ownership of a condo Until the developer registers the condominium with the city, you do not have legal ownership of your unit. The condo owners form a corporation and select a board of directors to oversee the building’s operations. A portion of the land, including your own unit as well as the shared areas, is sold to you. Once you sign a mortgage, monthly maintenance agreement, and tax documents, you are no longer responsible for interim occupancy expenses. Common areas in your building now have a warrant.

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Mortgage rates to rise with latest interest rate hike, but the end of raising cycle near

Mortgage rates to rise with latest interest rate hike, but the end of raising cycle near The increase in interest rates by a half per cent that was implemented by the Bank of Canada on Wednesday signals greater hardship for indebted homeowners and those who are trying to enter the property market because they will now have to fight with even higher mortgage rates and borrowing costs. After the Fed increased interest rates, the Royal Bank of Canada was the first of the Big Six banks to hike their prime rate, taking it from 5.95 per cent to 6.45 per cent. On Wednesday afternoon, the lending rates of the Toronto-Dominion Bank, the Bank of Montreal, Scotiabank, National Bank of Canada, CIBC, Equitable Bank, and Laurentian Bank were all raised to 6.45 per cent, with the increase taking effect on December 8. Economists, on the other hand, have pointed out a potential silver lining in the fact that the most recent massive rate increase — which raised the central bank’s trend-setting policy rate up to 4.25 per cent — could indicate the end of the cycle of rate hikes. While the majority of real estate markets are beginning to feel the consequences of rising interest rates, which have now increased by 400 basis points this year, the real estate markets in Toronto and Vancouver have been affected the worst. The number of properties that changed hands in Toronto dropped by 49 per cent year over year in November, which contributed to the price of a home falling by almost seven per cent to approximately one million dollars. The housing market in Vancouver did not fare any better, with sales decreasing by more than 50 per cent in November and the benchmark price of a home falling from October. Even while home sales and prices are falling, homes are not becoming more affordable for people who are considering purchasing one. According to Victor Tran, an expert on mortgages and real estate at Ratesdotca, the most recent action taken by the central bank will most likely result in the prime lending rate being given by the major banks increasing to 6.45%. Tran also stated that a homeowner with a variable-rate mortgage can anticipate an increase in monthly payments of around $28 per $100,000 of mortgage balance for every increase of 50 basis points in the interest rate. “Previous rate hikes significantly cooled the housing market while rising rates pushed many homebuyers, including first-time homebuyers and investors, to the sidelines to wait out the instability in the market,” Tran said, adding that Wednesday’s hike will have the same effect. “Rising rates pushed many homebuyers, including first-time homebuyers and investors, to the sidelines to wait out the instability in the market,” Tran said. Before purchasers start returning to the market in the spring of 2023, we may be witnessing the bottom of the trough that the housing market has been in. Mortgage holders are already feeling the effects of higher interest rates, which the Bank of Canada is beginning to notice. According to the most recent data provided by the central bank, approximately half of all variable-rate mortgages with fixed payments and nearly one-fifth of the entire Canadian mortgage pool have already hit their “trigger rates.” This refers to the point at which monthly mortgage payments are only covering the interest and are not making any progress on the principal. Those looking for a new place to call home will be pleased to hear this. Clay Jarvis, an expert on mortgages and real estate who works for the personal finance website NerdWallet Canada, stated that despite the fact that the path to homeownership may have become a little more difficult as a result of this announcement, this fact should not be a deal-breaker for prospective buyers. According to Jarvis, prospective purchasers of homes should be encouraged by the possibility that the Bank of Canada is getting close to the conclusion of its cycle of interest rate hikes. If the central bank truly believes that inflation will be back down to around three percent by the end of 2023, then they must also believe that the rate hikes they’ve been making will start having a noticeable effect in the early to middle stages of next year. “The overnight rate could rise further in January and March, but if the bank truly believes that inflation will be back down around three percent by the end of 2023, then they must also believe that the rate hikes they’ve been making will start having a If inflation begins to fall, there should be a halt to interest rate increases. The economics team at the Royal Bank of Canada made the observation that the policy statement issued by the Bank of Canada in conjunction with the interest rate increase was not as hawkish as the increase itself. In today’s guidelines, rather than stating that “the policy interest rate will need to rise further,” RBC Economics senior economist Josh Nye noted that “Governing Council will be examining whether the policy interest rate needs to rise further.” That unquestionably leaves the door open for a pause as soon as the next meeting in January, and from our point of view, that decision can be framed somewhere between 0 and 25 (basis points).

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Tips to decorate your new condominium

Tips to decorate your new condominium Whether you own a new home or condo, are thinking about buying one, or just love to fantasise about it. Your mind is probably already turning to the task of furnishing your new condo if this is your first such dwelling. Try to concentrate The best part about buying a brand-new apartment is making all of the design decisions yourself. Incorporating some of these options into your home’s decor can give you a solid head start. The options you choose to personalise your product are covered under the guarantee. The guarantee on your apartment may be voided if you make any modifications to the property after you move in. Before making any changes, consult with the builder. Time to use your imagination Make use of the apartment’s layout as a guide. It details the square footage of each space and highlights potential furniture-placing hurdles like walls, windows, and doors. You can use a website to create a floor plan of your condo and then arrange furniture to best utilise the space. Before you go out and buy new furniture, see if any of your relatives have any old armoires, desks, or cabinet drawers they aren’t using. It’s always lovely when antiques are used to complement newer furniture. In other words, splurging is unnecessary. There is plenty of high-quality, well-designed furniture that is suitable for use in condos in big-box stores. The quality is so high that it’s nearly impossible to distinguish them from high-end labels. Custom built-ins, like as bookcases and walk-in closet organisers, can be pricey, but they pay off in the long run because they maximise your storage space and are tailored to your needs. Mirrors are a practical and effective way to make a small room appear larger. Utilize decorative items such as throw pillows, vases with flowers, baskets, framed posters, planters, bowls, and lamps. To really make a space stand out, try mixing and matching these components in contrasting hues and textures. Try several arrangements of candles, books, small bronze or wooden planters, or boxes on a table, paying attention to how the different objects’ heights and textures contrast with one another. The carpeting you choose should be spectacular. It’s like hanging a painting on the floor; a beautiful rug can unify a space and draw the eye to the focal point. Whether you go big or go little, putting your own decorative imprint on your new apartment will provide you with years of joy. As you work to make your new home feel like a perfect fit for you, it’s important to remember that condo associations might put restrictions on some alterations, including: A requirement that all outside window treatments be white. In reality, this is a wonderful guideline; having all drapes and blinds in a building have the same colour makes the entire structure look tastefully unified. This fantastic neutral colour allows for continued experimentation with textures and textiles. Doormats and other decorative items placed outside the entrance door. The purpose of this regulation is to keep the common hallway free of shoes, boots, and strollers. It’s possible that the door decorations you think are so cute can actually be an eyesore to your neighbours. A well-planned layout and attractive finishing touches have the extra benefit of increasing the resale value of your home. Therefore, it is imperative that you read the fine print of your house warranty and become familiar with the maintenance requirements and restrictions associated with your new property.

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Five Things to Know Before Purchasing a Condo

Five Things to Know Before Purchasing a Condo Buying a new condo is a big investment that demands careful preparation and research, regardless of whether this is your first or fifth condo purchase. In this way, you will know exactly what to expect from your new condo and will be able to buy with confidence. Affordability of the condos As the cost of a condo is typically less than that of a “normal” house, it might be a better option for someone looking to buy their first home. Plus, you get the aforementioned extras. Although the purchase price is important, it is not the only cost to consider when deciding to become a homeowner. This is because condo maintenance expenses may ultimately make condo payments more expensive than rent payments for a similar single-family home. Mowing the lawn, cleaning the common areas, and painting the exterior of the building will not be on your to-do list. To be fair, though, somebody has to do it. You, together with the other owners, are responsible for these costs. Condominiums have more rigorous mortgage requirements. You may have heard that condo financing is more challenging, and that’s because they are. Condominiums provide their own set of obstacles when trying to get a mortgage. Condominiums are subject to further scrutiny from lenders to ensure they meet certain criteria. Some condos have these features, but some do not. You shouldn’t let the difficulties deter you, though; millions of individuals have funded their homes in this method with no major problems. Live by the HOA Rules In the process of purchasing a condo, you will be provided with a copy of the Covenants, Conditions, Restrictions, and Easements established by the condo association or condo management firm (CC&Rs). This is crucial background knowledge. To begin, they’ll outline who is responsible for what within your unit and what is yours to maintain as an individual owner. It’s possible that you’re not responsible for maintaining the exterior doors and windows if they aren’t yours. Furthermore, while central air conditioning is a standard feature, window air conditioners are not. Those specifics will be spelled out in your CC&Rs. The regulations you must follow are spelled forth in the CC&Rs as well. Liabilities are shared with hoa Because you have a financial stake in the HOA (partial ownership), you may be held responsible for its problems. As a result, you can be on the hook for some of the cost of fixing a problematic building if it gave its stamp of approval to the project. You may also be required to pay for the HOA’s legal fees and share in any losses incurred if the HOA is unsuccessful in its attempt to get the developer to take obligation. In fact, you will be treated as an anonymous third party in any lawsuit the association files. It’s probably best to avoid buying into a community with a HOA that’s in the middle of a major lawsuit or that routinely files lawsuits. The “assessments” on a condo might be costly In most cases, a financially stable HOA or condo corporation will have significant reserves. Each month’s fee should be somewhat higher than necessary to allow for savings. In this way, it will be able to afford costly maintenance and repairs if and when they become essential. However, not all condo or HOA management companies are competent. There isn’t enough savings to pay for major maintenance like a new roof, HVAC system, or window replacement.

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Three Tips For Resale “New” Homeowners

Three Tips For Resale “New” Homeowners You’re not exactly a first-time homebuyer, but you are fairly recent to the market. That’s because the condo or house you bought secondhand was probably constructed within the past year. There’s a strong possibility you’re still covered because Tarion provides a seven-year warranty on every home built in Ontario. Questions like “How does the warranty get transferred from the previous owner to me?” are reasonable at this time. as in “What if there are pending warranty claims?” Consider these three points before you make some of the same mistakes that other owners make Exchange of keys by hand A transfer of the warranty is not implied. The Property’s Age Although “old is gold,” at what point does it become unusable? For the most part, homes older than 40–50 years should be avoided. The building and the house may have sustained significant structural damage by now. You’ll need to spend significantly more money than you planned on due to the extensive remodelling and unanticipated repairs. The Bylaws and Regulations of the Association Buying a house in a community always involves joining an association that has control over the running of the community. To find out if any alterations or additions to the home you’re looking to buy are prohibited, you should contact the relevant authorities. Some communities set restrictions on what kinds of renovations can be done, when such renovations can be done, etc. Before purchasing a home that will require extensive repairs, it is wise to seek the blessing of the local building association. Insurance premiums and a deposit on a house It’s important to remember that the insurance payout you receive when purchasing a previously owned property will be less than if you were purchasing a brand new home. You’ll need a larger down payment to purchase a resale home than you would for a brand-new home, typically 20% or more.

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