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Questions asked by every CONDOMINIUM PURCHASER

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Questions asked by every CONDOMINIUM PURCHASER Buying a brand-new condominium is a thrilling experience, and that’s putting it mildly. However, when you begin to feel more at home in your new surroundings, you may have some questions. Some of the more frequent examples are listed below. How might my situation be affected by interim occupancy? Before the entire development is registered with the local municipality, you may move in, but you won’t be the legal owner of the unit. The time between when you receive the keys to your new condo and when you assume title to the apartment is known as “interim occupation” (when you own your home) There will be a monthly charge paid to the builder during this time that will cover the interest accrued on the remaining debt, the estimated municipal taxes on the unit, and the estimated costs of maintaining the property. When the developer finishes the condo and the condo association is officially registered with the land registry, the interim possession period ends. During this time, you and the builder will decide upon a closing date, which is the day you will officially become the owner of the property. Who can file a claim for a warranty? Within the first 30 days of moving in, you are eligible to submit your first warranty claim for the one-, two-, or seven-year unit warranty that kicks in when you take possession. Everything from the unit’s walls and flooring to its cabinets and counters is covered by the guarantee, as long as it’s located inside the unit’s boundaries. You, the unit’s owner, must file all warranty claims with the building’s developer and Tarion. If you are a homeowner, you can fill out the warranty documents for your home and submit them to your builder and Tarion all at once using our online service, MyHome. We urge all new condo owners to sign up for MyHome as soon as they move in. When do I get to see the limits of my unit? A “unit” in a condominium complex is what a buyer acquires upon making such a purchase. Your builder should have issued you with a copy of the condominium project’s Declaration and Description, which will outline the boundaries of your unit. This will serve to define your group’s confines and its shared resources. When problems arise, whose responsibility is it to file a warranty claim, and what common components are involved? In a condominium complex, the unit owners collectively share the common elements. In most cases, the units themselves are not included but everything else on the property is. The recreation room, lobby, elevators, and parking garage are all staples. You may also have access to ‘exclusive common components,’ depending on the condo unit type you purchase. Things like a balcony that you use exclusively would fall under the purview of the common elements warranty but are not shared with other tenants. Since the condo corp is technically the “owner” of the project’s shared spaces, it is the only entity authorised to submit and manage warranty claims for these areas to the developer and warranty administrator, Tarion. When the condominium development is first recorded with the city, the warranty on the shared parts goes into effect

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A New Purchaser of a Condo Under Construction

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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

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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

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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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A Guide for interim occupancy

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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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