Purchasing a New Condominium
By Denise Lash
Are you excited about the prospect of buying your first new home? Perhaps you’re considering buying a new condominium townhome or a loft. With so many options, where do you start?
Most importantly, take the time to look around. Find a good real estate agent who is experienced in the condominium market and familiar with the area in which you hope to buy. You can check on a builder by contacting Tarion (www.tarion.com). They will have information on the company’s history and past projects.
Once you’re comfortable with your builder, the next step is to review the condominium documentation and find out exactly what you are purchasing. What are the restrictions imposed in the documentation? What are the extra costs? What about the closing date? What will the completed unit look like?
If you are purchasing a new condominium, you will be presented with an agreement (the Agreement of Purchase and Sale), as well as the condominium documentation. From the date that the Agreement of Purchase and Sale has been signed you and your lawyer will have 10 days to review the documentation. Here are a few points to consider:
Are there other charges besides the purchase price?
Yes, and some of those charges are negotiable. A few additional expenses you can anticipate are the Land Transfer Tax, the Tarion enrolment fee, the Law Society fee, utility meter hookup charges, development charges, upfront contribution to the reserve fund, and GST if you are purchasing the condominium as an investment and not occupying the unit personally.
What will the unit look like?
You may not get what you think you are getting. It is extremely important for you and your lawyer to review the Agreement of Purchase and Sale to ensure you have the protection you need. The dimensions and ceiling height should be clearly dealt with in your Agreement of Purchase and Sale so you can determine the size of the unit and the individual rooms. Finishes and features may also be specified and may be subject to substitutions. Items that you want to ensure you have in your unit should be brought to the attention of your lawyer at the time of review.
What are the restrictions?
Do you have a pet? Do you intend to use window coverings that are not white in colour? Or do you require hardwood flooring throughout your unit? Check these items in the condominium documentation to see what the restrictions are. It may be that no pets are allowed, that there are restrictions on the number or type of pets, or there may be a weight restriction for your pet.
Another common restriction is that floors need to be covered with carpeting. If you want that beautiful hardwood throughout the unit, check to see if you have to cover a certain percentage of your floor area with carpeting or rugs.
If your window coverings are not white or off-white in colour — beware. The condominium documentation may specify that any window coverings appearing from the exterior of the building must be a certain colour or type of covering.
All of these restrictions and others are contained in the condominium documentation. They should be reviewed in detail so that once you become an owner, you are aware of what you can do within your unit.
What else are you getting besides the unit?
Lockers and parking are often included with the purchase of your condominium unit, but you should confirm that they are included. The location of your parking space may be critical to you, or perhaps you need a certain size of locker. If these items are important to you, then you may want to specify those details in your Agreement of Purchase and Sale. Also, check to see if you are purchasing your locker or parking space as separate “units†to which you hold separate legal title with separate common expenses, or whether they are “exclusive use†which do not have separate expenses and are allocated specifically to your condominium unit.
Expect delays
It is common for closing dates, which are specified in your Agreement of Purchase and Sale, to be extended because of delays, such as construction difficulties, that may be beyond the control of the vendor. Be prepared for extensions in closing dates, and make prior arrangements for accommodation and storage just in case your move-in date changes. Obtaining this information and negotiating these terms early on will assist you in understanding what you are buying, and will make the process of purchasing a condominium less stressful.
Denise Lash is a condo lawyer at Miller Thomson LLP and co-founder of MondoCondo.
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