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Three common components tips for new homeowners

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Three common components tips for new homeowners The convenience of having a low-maintenance lifestyle is a major selling point for a condominium for homeowners. Not to bother about yard work, gardening, or pressure cleaning the driveway. Yet, this does not give you the licence to disregard the shared spaces in your building completely. Discover the common elements Homeowners of a condominium share ownership of the common features, which include the building’s infrastructure, grounds, and amenities. This includes anything outside of your apartment: Laundry rooms Fitness rooms and pools Garages Roofs Gardens Lobbies Utility systems (e.g., heating, cooling, electrical, security) Hallways Walkways and steps to building entrances Elevators There are also “exclusive-use common elements,” which are used in a way that is different from their more common counterparts. Patios, balconies, and parking spots all fall within this category. Since these features are shared amongst multiple units, only the owners of the units directly adjacent to them can use them. Go to your Disclosure Statement or recorded Declaration and Description if you are unsure of the location of your unit’s borders in relation to common areas. Condominium fee information Each unit of homeowners in your building must contribute to the overall expense of upkeep and repair of the building’s common areas. Condominium dues are typically calculated monthly based on the size of your living space. Other monthly housing expenses must be taken into account besides the mortgage and property taxes. Common area upkeep is included in your monthly condo fee and includes things like landscaping, waste collection, recycling, outside window cleaning, snow removal, carpet cleaning, and energy payments. Condominium dues can include funding for the maintenance and upkeep of shared areas. Your condo association dues include money set aside in case of emergency repairs or replacements. In rare instances, however, additional funds from property owners may be required.home Learn your warranty’s terms and conditions Condominiums may qualify for warranty protection under Ontario’s New Home Warranties Plan Act, which might apply to individual units and the building’s shared infrastructure. Tarion will hear warranty claims from both individual unit owners and the condo association itself in regard to the unit’s individual components and the common areas. The period of interim occupancy, which can run anywhere from a few weeks to a few months, begins when you move into your unit and ends when you become the registered owner. When you move in temporarily, the warranty protections for your unit will kick in. It’s possible that the rest of the building won’t be done during your temporary occupation time before registration. During this time, your builder will finish the communal areas and any remaining units. Until the condominium project is registered, the warranty period for the common areas will not begin. Thus, your coverage will be inadequate during this time. Your home is still warranted even though the warranty has expired. Hence, if you see something in the common areas that you think needs fixing, let the property management know so that they can get in touch with the developer. The Common Element Building Performance Standards might help you figure out if the builder’s warranty covers your problem. Suppose your builder isn’t addressing your complaints. In that case, you can create an ad hoc committee of three to five unit owners who will communicate with Tarion’s common components warranty team on your behalf if the builder doesn’t. If you’re new to condo living, the shared areas can be especially challenging to figure out. Related posts 07 March 2023 Is the Buggy Light Justified? 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Here Are Five Things You Can Count On From Your Contractor If you want… 28 February 2023 Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s… 28 February 2023 Fitch Expects World’s Biggest Real Estate Price Correction in Canada Fitch Expects World’s Biggest Real Estate Price Correction in Canada A major credit rating agency… 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession,… 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a…

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Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor

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Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor If you want your custom-built new home in Ontario to be covered by the province’s new home warranty programme, you must hire a contractor or builder registered with the province as a new home builder and seller. Do you plan to construct your ideal home in 2023? If so, you could have already begun seeking a contractor to help you realise your vision. It is important to protect yourself from things like construction flaws, scams, and more. Therefore, it’s crucial to familiarise yourself with the standards governing new house construction before you get too deep into the design phase. Included here is everything that your custom home builder must do. Beginning from the time they break ground to the time you move in. When interviewing potential builders for your project, it is important to take the time. Ensure to go over these points to ensure you are speaking with the correct person Get a registered builder and supplier of new houses The Home Construction Regulatory Authority is responsible for issuing licences to home builders and real estate agents in Ontario (HCRA). Your builder needs a licence before he can sign a contract with you. Checking a builder’s licencing status and warranty history is easy with the help of the Ontario Builder Directory. Tarion registration is a must All new homes in Ontario must, with rare exceptions, be registered with the Tarion warranty programme before construction can begin. Enrolling your home in a warranty programme gives you access to benefits. This include financial reimbursement for losses if your builder fails to deliver as promised before the home is finished. You can verify your home’s enrollment with Tarion through the HCRA’s Ontario Builder Directory as well. Have a legally binding contract drawn up, including any applicable warranties Your new home purchase agreement should contain a Warranty Information Sheet that summarises the coverage provided by the builder and any additional warranties you may purchase. Before signing any real estate transaction, it is wise to have it evaluated by an attorney Have a last walkthrough before the scheduled delivery date Pre-delivery inspections (or PDIs) are conducted before a home is officially handed over to the buyer. This is done to document any issues with the home’s condition prior to delivery, such as items that are missing, incomplete, damaged, or not functioning as they should. You can also get answers to your inquiries concerning the care and maintenance of household goods at this time. At this point, you should also receive a copy of your warranty certificate from your builder. Provide a warranty on the new construction After you accept ownership, you have seven years to make a claim on the builder’s workmanship and materials warranty. Coverage for items like code violations and major structural flaws is included. Your builder must promptly investigate and resolve any issues you bring to their attention that are covered by the warranty. The time, effort, and resources required to construct a bespoke home are substantial. Your chances of having a successful building project increase significantly if you are familiar with the regulations in advance and check to see that your builder is adhering to them. Related posts 07 March 2023 Three common components tips for new homeowners Three common components tips for new homeowners   The convenience of having a low-maintenance lifestyle… 01 March 2023 Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor If you want… 28 February 2023 Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s… 28 February 2023 Fitch Expects World’s Biggest Real Estate Price Correction in Canada Fitch Expects World’s Biggest Real Estate Price Correction in Canada A major credit rating agency… 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession,… 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a… 30 January 2023 How can homeowners safeguard against title fraud? How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and…

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Quick tips for first-time homebuyers

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Quick tips for first-time homebuyers How will someone know when it’s “the proper moment” to buy a house? maybe a question you have if you’ve been considering it. Is it still ok to think about buying if you don’t have a 20% down payment saved up? Like any major undertaking, the secret to a smooth home purchase is to pay attention to every last detail. You can navigate the procedure, save money, and complete the transaction with the aid of these first-time house purchase recommendations. Determine the cost of your home Before you start looking, determine how much you can afford to spend on a house. The house affordability calculator can assist you in determining a price range based on your income, debt, down payment, credit score, and the location of your intended residence. Examine and improve your credit If you are eligible for a mortgage, your credit score will help lenders decide what interest rate to give you. Generally speaking, a better score will result in a lower interest rate, so follow these recommendations to improve your credit score in order to purchase a home. Get free copies of your credit reports from Experian, Equifax, and TransUnion, the three credit bureaus, and challenge any errors that could lower your score. Maintain the lowest possible credit card balances while paying all of your bills on time. Keep your active credit cards active. Closing a card will increase the amount of credit you are already using, which could harm your credit score. Monitor your credit rating. Research for first-time home buyers programmes First-time home buyer programmes are available in many states, some cities, and counties, and frequently include low-interest mortgages, down payment help, and closing cost aid. Additionally, tax benefits are offered by several first-time home buyer programmes. Costs and rates of mortgages To compare costs, including interest rates and potential origination fees, the Consumer Financial Protection Bureau advises receiving loan estimates for the same type of mortgage from many lenders. Discount points, which the borrower pays up in advance to reduce the interest rate, may be available from lenders. If you have the cash on hand and intend to live in the house for a long time, buying points may make sense. To make your choice, use a discount point calculator. Get a letter of pre-approval An offer from a lender to lend you money up front and on particular terms is known as a mortgage preapproval. A pre-approval letter can provide you with an advantage over other home shoppers who haven’t taken this step yet by demonstrating to home sellers and real estate agents that you’re a serious buyer. When you’re ready to begin looking for a home, submit an application for preapproval. To confirm your income, assets, and debt, a lender will check your credit and look over your paperwork. If you apply for a preapproval from multiple lenders to compare rates, as long as you do it within a set time period, such as 30 days, it shouldn’t adversely affect your credit score.

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Essential facts about mortgage

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Essential facts about mortgage A mortgage, at its most basic, is a debt taken out to finance the purchase of real estate. A mortgage, like any other loan, has parameters such as an interest rate and an amortisation (payment) schedule. Mortgages are secured by the collateral of the home itself. This means that the mortgage lender has the right to take back the home if the mortgage holder defaults on payments. It is important to understand the following ideas before applying for a mortgage. That will help you receive the best mortgage possible: Term- During the term of your mortgage agreement, you are obligated to make monthly mortgage payments. Rental periods might be as short as six months or as long as five years. Rate of interest- the cost of carrying a mortgage. A portion of each monthly mortgage payment goes toward reducing the loan’s principle balance, while the rest covers interest accrued. Open or closed mortgage- How much leeway you have in determining when and how much of your mortgage payment you make each month determines whether your mortgage is open or closed. You’ll need an open mortgage if you ever want to modify the loan in any way, including renegotiation, refinancing, or repayment. A closed mortgage will limit your options. But the interest rate is usually lower on these types of loans. Mortgage amortization- It is the time it will take to pay off your loan in full. For mortgages, the standard amortisation time offered by the country’s major lenders in Canada is from five to twenty-five years, with a maximum of thirty years available with a twenty percent down payment. In most cases, borrowers will need to wait until the end of many mortgage periods before making the final payment. Fixed or variable mortgage- Mortgage interest can be either fixed (staying the same for the duration of the loan) or variable (changing periodically). Rates of interest on variable-rate loans can rise and fall in response to fluctuations in the market.is How long will it take to pay off your mortgage The length of your mortgage is different from the time it takes to pay it off. The length of time during which you make payments on your mortgage is known as its amortisation period. With a 20% down payment, the standard amortisation length offered by most Canadian lenders is 25 years; with a larger down payment, this number can rise to 30 years. In general, the lower the amortisation term, the lower your interest payments will be over the life of your loan, but the larger your regular mortgage payments will be. should I go for the highest possible amount? For first-time buyers, it’s also vital to consider how much of a mortgage they can comfortably make each month. There are practical matters to think about in your house search regardless of the size of the loan you can afford. First and foremost is the reality that variable interest rates will almost certainly increase in 2022 due to a likely rate hike by the Bank of Canada sometime in the first quarter, maybe in April. The uptrend in fixed rates is expected to continue. Not only should you be aware of the growing rates, but you should also be aware of the fact that many experts advocate setting aside at least 10% of your gross pay for retirement (and some even propose as much as 30%). When borrowing money, it’s best not to borrow more than you can comfortably repay in a single payment. Mortgage affordability calculators can be helpful if you’re not sure how much house you can afford. You should always double-check the results of these tools with a broker who is familiar with the nuances of your financial situation, as they are only meant to provide estimates. How can I determine whether I need adaptability or stability? The choice between a fixed or variable interest rate, a longer or shorter term, a shorter or longer amortisation period, and a larger or smaller mortgage balance all comes down to personal preference and tolerance for risk. If you want to stay within your financial means and at the same time feel at ease, you need to be practical. And fortunately, you can rely on others to help you get the best mortgage for first-time buyers. A mortgage broker can help a first-time buyer get the best mortgage rate and lender for their situation by comparing products from numerous sources.

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Pre-construction assignment sale is ADVANTAGEOUS

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PRE-CONSTRUCTION ASSIGNMENT SALE IS ADVANTAGEOUS Things can shift rapidly in life, for better or worse. The Agreement of Purchase and Sale includes a no-assignment clause for the security of both the original purchaser and the developer. It normally takes about four to five years to finish building a condo from the ground up, and even longer for a high-rise complex. These apartments are put up for sale well in advance of when the building really begins. George, a bachelor of 27 years, has a career in the medical sciences. He has worked hard and saved enough money to put a down payment on an apartment in a new downtown Toronto development that will have 30 stories when it is finally finished four years from now. After putting down a down payment and signing the purchase agreement, George is free to carry on with his single life and thriving profession as a proud future homeowner. Imagine that two years from now, George receives a job offer in a different city, meets a wonderful new person, and envisions a bright future with them both. Or perhaps his financial situation has taken a turn for the worse, and he no longer qualifies for a mortgage and desperately needs the pre-construction condo unit. It’s also possible that George is an investor with extensive knowledge of the local real estate market. He invests in pre-construction unit contracts, then, when the time comes, lists the apartments for sale as assignment sales through real estate agents. Due to the length of time, it has taken to complete the building, the value of the land on which it is situated has increased, increasing the worth of the unit beyond the amount paid for the contract. In the few years it takes to construct a condo complex, a lot can happen in anyone’s life and finances, both for the better and for the worse. These are just a few of the many circumstances that frequently lead to an Agreement of Purchase and Sale assignment in the pre-construction building industry and with developers.

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The Legal Process of an Assignment Sale

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The Legal Process of an Assignment Sale Using the assignment clause to buy or sell a pre-construction apartment requires competent legal advice. The services of a lawyer with experience in this field should be sought out. Three years ago, when Stefan bought his two-bedroom-plus-den condo, he worked with a real estate agent and a lawyer who specialised in pre-construction real estate to help him navigate the process, answer his questions, and make sense of the complex legalese contained in his Agreement of Purchase and Sale. Legally, you can sell a property before building has even begun through a process called an assignment, but it’s a bit more involved than a regular selling because there are now (the assignor original buyer, the developer, and the assignee new buyer). Stefan’s condo’s assignment sale clause was included in the Agreement of Purchase and Sale that he signed with the developer. Stefan is now permitted by law to sell the pre-construction contract for the unit to a third party, provided that the new buyer agrees to be bound by the terms and conditions of the Agreement of Purchase and Sale. Yes, the transaction is regarded to be valid if an assignment clause is included in the Agreement of Purchase and Sale and Stefan complies with the terms and conditions specified therein. Although assignment sales are permitted under the law, each pre-construction developer has their own set of rules and regulations that might make each assignment sale different. As the anticipated occupancy date for Stefan’s pre-construction condominium unit approaches, he is considering selling the contract for the apartment. He has decided to engage with the same real estate agent and lawyer to guide him through the assignment sale process and ensure that he complies with all applicable laws and developer regulations. Stefan will need to pay the developer for the assignment sale, which often takes the form of legal and administration fees in order to transfer the contract for the 2-bedroom plus den unit from his name to the new buyer’s name. The Assignment of Purchase and Selling will detail the total price of the pre-construction sale assignment.

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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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Deposit Protection Eases Homebuying Stress

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Deposit protection eases homebuying stress Putting down a sizable deposit to secure the purchase of a new-construction house or condominium is a significant step in the home-buying process. Similar to the rising cost of housing, the cost of making a deposit has also increased dramatically. If you make a down payment on a new house but are unable to close the deal because the builder declares bankruptcy or otherwise materially breaks the purchase agreement, your deposit may be protected by a government agency. Even if situations like these don’t arise often, it’s comforting to know you’re covered. If you end the purchase agreement due to a legal requirement, your deposit may still be protected. FREEHOLD PROPERTY DEPOSIT Deposits on freehold properties signed before January 1, 2018, are covered up to a maximum of $40,000. For contracts signed on or after January 1st, 2018, the amount of your security deposit insurance will be proportional to the price of your new house. In the case of a new freehold home costing $600,000 or less, for instance, a deposit of up to $60,000 would be compensated. You are covered for up to 10% of the purchase price, or $100,000, whichever is greater, if the total price is more than $600,000. Payment plans for condos The buyer of a condo can choose between two different deposit protection levels. To begin, the Condominium Act mandates that all deposits be held in trust by the developer. This ensures that your money is safe. The developer has 10 days to return your entire deposit if the purchase agreement is cancelled. Additional features and enhancements Putting money into enhancements and accessories for your new house can increase its resale price. Hardwood floors, quartz or granite countertops, upgraded cabinetry, and tiled bathrooms are all examples of popular renovations. Features like central air conditioning and fireplaces are possible upgrades. The deposit protection has been extended to include any payments made to the builder for improvements or extras, allowing you to rest easy knowing your money is safe. When it comes to deposits, what exactly is not protected? If you put down money to hold a reservation on a new construction house or condo before signing a purchase agreement, that money is not safe. If this is the case, you should request that the contractor hold the payment in escrow and acquire a receipt. Buying a brand-new house or apartment complex is a substantial financial commitment, perhaps the biggest of your whole life. It’s reassuring to know that the money you put down on a house is safe, giving you less thing to fret over in your hunt. Related posts. How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More How can Home Warranty Guard You Against Unexpected Expenses Read More Canada hopes to welcome half a million immigrants by 2025, but can the country keep up? Read More Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ Read More

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How can Home Warranty Guard You Against Unexpected Expenses

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How can Home Warranty Guard You Against Unexpected Expenses After moving into a brand new house or condo, the last thing you’re expecting is an unexpected emergency like a complete lack of heat or a huge plumbing leak. After all, the home’s essential systems and components are all spanking new, and the house was thoroughly evaluated at crucial points in its development. Unfortunately, however, crises do arise occasionally. Emergency situations that can be traced directly to the builder’s work or supplies are covered by the Tarion-administered new home warranty. WHAT DOES IT MEAN WHEN WE SAY THERE’S AN EMERGENCY? To qualify as an emergency under Ontario’s new home warranty, the problem must arise during the guarantee term and be caused by a warranted defect that, if left unresolved, would result in serious damage to your home, condominium unit, real estate property or condominium common features. Likewise, if your health or safety is in jeopardy or if your home is rendered inhabitable, you may be facing an emergency situation. Standard breakdowns that may be covered by a warranty include: Any of the following conditions exist no heat between September 15 and May 15; a gas leak; no electricity; no water; no sewage disposal; a plumbing leak so severe that the entire water supply must be turned off; a major collapse of any part of the exterior or interior structure; water penetrating the interior walls or ceiling; a pool of standing water inside the home; and/or the presence of unacceptable levels of hazardous substances i.e. mould, gas, and electricity. Keep in mind that the builder’s warranty does not apply in the event of an emergency caused by factors outside the builder’s control, such as the failure of municipal or utility services. IN A DIRE SITUATION, WHAT STEPS SHOULD YOU TAKE? Due to the fact that you are in charge of handling the home warranty, you should call your builder first in the event of an urgent matter. Once you’ve done that, you have up to 24 hours for your builder to fix the problem, make your home safe, and stop any additional damage. No one anticipates or hopes for unexpected problems to detract from the excitement of moving into a new house. If they do occur, though, you can be assured that plans are in place to get you back to enjoying your new home as soon as possible. Related posts. How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More How can Home Warranty Guard You Against Unexpected Expenses Read More Canada hopes to welcome half a million immigrants by 2025, but can the country keep up? Read More Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ Read More

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