Buying A New Condo? Start Here

Toronto, ON – Buying a new condo these days, is a lot like a blind date. You don’t know what you’re in for, and it’s difficult to get out if you don’t. 

Developers pay their lawyers lots of money to design agreements of purchase and sale, which are so lop-sided, buyers have no rights. It’s not fair. We’ve seen many of examples of the developers saying they “might” do this or that, or worse, having the right to change a number of things without the consent of the buyers. 

Builders have a lot of room to make changes, and the buyers’ only recourse is to get out of the deal. But people don’t want to walk away from their deposits, or lose the home they thought they were buying.

In one case, a buyer purchased the “Penthouse” suite in a downtown building, paying a hefty premium, only to later find out that there was and “Upper Penthouse” above her suite, and she couldn’t do anything about it.

One of the things we recommend is to do a line-by-line comparison between the disclosure documents you got when you first signed, and the ones they give you upon occupancy, and have your lawyer review these carefully.

Another thing to note is the new condo warranties are handled by the Ontario New Home Warranty Program, or “ONHWP”. The problem is that the board of directors is run by the builders, even though the homeowners pay the premiums.

Also, if you are buying a “conversion” loft project, OHNWP doesn’t cover it, so if you have any deficiencies, you have to deal directly with the builder. And if the builder is a shell corporation with no other assets, good luck getting any recourse after the fact.

What to do? Make sure that any deficiencies are handled prior to closing, and make sure your buyer agent and your lawyer are kept up to date in this regard. 

Another beef: people are being forced to move in when workmen are still completing substantial amounts of work in their suites – like missing sinks or doors, or unfinished common elements, such as gyms and pools.

You shouldn’t have to live in a construction site, and you shouldn’t have to pay maintenance fees for amenities you aren’t getting!

The truth is, for some people, buying a new condo is still better. There’s nothing like a brand new suite, with the exact finishes you like, but it comes with a price. To make sure you don’t pay too heavily in the end, make sure you have the right team, including a lawyer experienced in new condominium purchase, and a Condo Expert Agent. 

Not sure where to look? Give us a call, and we’ll refer you to the right people. Call now.

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