If you are that someone who is looking to invest in the real estate market and want to buy yourself a pre-construction condo located in the Mississauga area, you might want to know that the process of buying a pre-construction condos largely different from the process of buying a resale condo. As you know the condo is in its pre-construction stage therefore the purchase is like 2-4 years early and thus there is no requirement for mortgage. Even though there may be a lot of things to consider, buying a pre-construction condo is planning for future and it may as well pay off getting you money more than you spent. All you have to do is to find the correct deal, with the right dealer with the help of a correct real estate agent.
While buying a pre-construction condo, the main thing is that, at the present time, you are essentially buying just a floor plan. Although some dealers in Mississauga have also built a condo or two depicting what the actual condo may look like in a couple of years, thus helping you further in making the decision. Now we’ll go after the steps in buying a pre-construction condo.
1- Before even starting to look for the condos or any kind of real estate property, the first step always choosing a real estate agent who specializes in the kind of property you are looking for. Similarly, in the case of pre-construction condos, first-of-all look for a real estate agent who specializes in pre-construction condos. Always make sure that the real estate agent has the perfect knowledge and experience in dealing with pre-construction condo deals, knows the process inside out and has a good sales record.
2- After choosing the perfect real estate agent for you, you may now go for condo hunting by booking appointments with various builders fulfilling your criteria of the pre-construction condos.
3- The third step in the process of buying pre-construction condos is visiting the selected few projects whose floor plans were the ones you liked and the ones that filled your criteria of the pre-construction condos. After selecting the one pre-construction condo that you like enough, you’ll be asked to sign various appropriate documents. The whole agreement of the pre-construction condos is big bunch of papers and almost 30 pages longer than the agreement used in the dealings of resale condos. After the selection, a period of 10 days known as the “cooling period”. During this cooling period, you’ll be asked to get your agreement with the builder reviewed by your lawyer. Once your lawyer gives you the go ahead, you’ll be asked to deposit the remainder of checks. The payment at the start of the deal is usually 20% of the total purchase price of the pre-construction condo.
4- After almost halfway through the construction phase of the condos, a sales presentation will ask you to finalize the kind of finishes and colors you would like to use in your condo and also various features of the condos will be discussed. This opportunity can be used to use all your creativity and fill the home with the colors you have always wanted for your home.
5- After the condo is almost built and ready to be handed over, the keys to your brand new condo will be handed over to you. Though the condo is still not yours legally as it still belongs to the builder, but you’ll be paying for the various taxes such as maintenance tax, property tax, the raining of the balance owed etc. This in realty terms is known “Interim Occupancy” and lasts for almost 6-8 months. Once the condo building is registered with the local governmental bodies and the title ownership is transferred to you that are the time you’ll be requiring a mortgage. This is known as “Final Closing.”
6- Now you have your own brand new Condo. Congratulations.
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The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.
Information is deemed reliable but is not guaranteed accurate by TREB.
Toronto Real Estate Board - IDX Last Updated: 3/21/2019 8:50:51 AM