Guides

If you're looking to buy a pre-construction condo in the GTA, it's important to do your research and be prepared for a potentially complex process. Here's a step-by-step guide to help you navigate the process:

Work with a pre-construction broker: It's recommended to work with a realtor who specializes in pre-construction condos, as they can negotiate beneficial terms for you.

How Pre-Construction Condos Are Sold: The suites are released in two phases - General Broker Release and Public Release, with the lowest launch prices available in the former.

Your Deposit/ Down Payment: You will need up to 20% (or more depending on the development/builder) of the purchase price, spread out incrementally over time.
ex. Requires 5% at signing, 5% 6 months in, 5-10% 1 Year in, and 5-10% at time of closing (or some structure resembling this)

Research: Research the developer's reputation, location, pricing, and other factors that can affect the value of the condo in the future.

Review the Agreement of Purchase and Sale: Ensure that the agreement includes all critical elements, such as deposit structure, unit price, closing costs, and other fees.

Land Transfer HST: HST is actually built right into the builders price. So the builder does the market research on what prices should be and right off the top buries HST 13% into the purchase/ advertised price. If it is not for personal use as a principal residence at closing the buyer will face paying the HST credit they would have received if it was principal residence (+$25,000 approx).

Closing Day: On this day, the property officially becomes yours, and you will need to provide the balance of the purchase price.

Additional Factors to Consider: These include interim occupancy timelines, rental allowance, Tarion warranties, development fees, land transfer HST, closing date, deposit structure, assignment allowance, and the sales procedure.

Benefits of Working with a Realtor: They can provide invaluable guidance, support, and advocacy throughout the purchasing process, ensuring that your best interests are taken care of. Inspection: Have a home inspection done after approximately six months of owning the property to take care of any covered items under the Tarion warranty.

When choosing a realtor to work with, it can be helpful to look for someone who has experience specifically with pre-construction properties. This can help ensure that they are familiar with the unique considerations and potential pitfalls of buying a property that is not yet built.

When reviewing the Agreement of Purchase and Sale for a pre-construction property, it's important to pay attention to details such as the deposit structure, potential fees or charges, and any restrictions on making changes to the unit or choosing finishes during the pre-construction phase.

Buyers should also be aware of the risks involved in buying pre-construction, such as the possibility of delays or changes to the development plans. While a reputable developer will typically work to minimize these risks, it's important to be prepared for the possibility that things may not go exactly as planned. It's also worth noting that pre-construction properties can be a good option for investors, as they offer the potential for appreciation in value over time. However, it's important to carefully consider factors such as location and the overall demand for the property before making an investment.

Finally, buyers should have realistic expectations about the timeline for a pre-construction property. While some properties may be completed relatively quickly, others can take several years to be built and occupied. Buyers should be prepared for a potentially lengthy interim occupancy period, during which they will need to pay monthly fees to the developer before the property is officially transferred to their ownership. Make sure to ask if you can rent the unit out during interim occupancy.

Placing An Offer:

You’ve found the one - fantastic! Now, there are a number of things to consider before writing the offer for your next or first home:

1. Offer Price
2. Deposit - Typically 5%+ of the purchase price due herewith or within 24 hours of offer acceptance.
Make sure funds are available.
3. Terms & Conditions - Included to clarify expectations and protect your best interests.
Most common conditions = financing, inspection, and status review (if condo). Typically about 5 day
conditional periods. When you are fulfilling the obligations of these conditions you remove/ waive
them.
4. Inclusions & Exclusions
5. Closing Date

First, we will conduct a detailed CMA (Comparative Market Analysis) complete with comparable listings and relevant historical data in order to determine the market value of the home.

In a seller’s market, where there is a low supply of homes and high buyer demand, it is not uncommon
for sellers to list their homes below market value and set an “offer date” in order to attract attention and
encourage multiple offers. Don’t worry, we will guide you in making an educated yet competitive offer.

Pricing must always be carefully considered, as overpaying for a property is oftentimes not an option.
Sometimes a pre-emptive or “bully” offer is your best option. This is a firm (unconditional) offer submitted
in advance of the offer date. In this case, you may want to consider having a pre-inspection done. Our
home inspectors will inspect the home in advance of you placing an offer. There are various offerings for
every type of home. 

Once your offer is submitted, the seller may accept, reject, or counter it. Leave the negotiating to me!

Closing The Deal:

Congratulations, your offer was accepted! You will need to transfer your deposit over within 24 hours, so make sure it is in an accessible account.

*Note: Institutions like Simplii and ING don’t have brick and mortar locations. If you bank with them,
you may need to transfer the funds elsewhere so that they can be quickly accessed via bank draft.

It’s also time to satisfy the conditions of the offer, if any. I will help you make the necessary
arrangements and ensure all deadlines are met. Once conditions have been fulfilled or waived, the
deal is firm and pending closing day.

Depending on what you and the seller agreed upon in the contract, you will typically have anywhere from 30 to 90 days to prepare for your move. During this time, there are a few more tasks to complete:

• Hire a legal professional to represent your interests and manage closing documentation.
• Confirm your home purchase with your lender and finalize your mortgage details.
• Obtain home insurance.
• Give notice to your landlord if you are currently renting.
• Book your move; obtain estimates from reputable moving companies.
• Update utilities and transfer services (hydro, gas, water, cable, phone, internet, etc.).
• Update documents and IDs (driver’s license, health card, vehicle registration, passport, NEXUS card, immigration application, etc.).
• Inform the CRA, Service Canada, your financial institution, your investment firm, etc. of your new address.

Your purchase becomes a reality on closing day when ownership is officially transferred to you.
We will do a final walk through of the home 24-72 hours beforehand in order to ensure everything is
in working order. 

At closing, you will complete the final documentation with your lawyer, pay the remaining balances & fees, and collect the keys to your new home!

Make sure you account for the following closing costs:

• Balance of your down payment
• Land transfer tax
• Legal fees
• Title insurance
• Mortgage broker or application fees
• Mortgage insurance (CMHC) fees
• Bank appraisal fees
• Survey fees
• Pro-rated amounts for any prepaid costs
(utility bills, property taxes, etc.)
• GST/HST (if new build property)

In my experience, most closings happen between 2-4pm. This all depends on the lawyers, banks,
and registry office. I recommend you plan on moving in the following day as you will not know
exactly what time the keys will be ready for pick up. All closing related operations are performed between the lawyer who represents you as the buyer along with the lawyer who represent the seller. 

Finally, don’t stress! When the time comes, I will deliver a plan to help you coordinate a smooth closing which includes timely reminders and to do lists for you!

 

Now...the fun part; house shopping!

When viewing properties you are interested in, it’s important to try to remain objective. The initial glow of
a home can cause you to overlook its potential faults. Keeping your emotions in check and long-term future in mind will help you make a smart buying decision and find the home that’s perfect for you.

I will help you look beyond surface aesthetics at:

• Exterior features (foundation, roof, eaves/ downspouts, windows, doors, fencing, and
landscaping).
• Interior features (walls, floors, outlets/ switches, lighting, fixtures, and appliances).
• Heating, cooling, plumbing, and electrical systems.
• Visible signs of problems (water or pest damage).
• Noise levels from neighboring properties, cars, public transport, highways, railways, and airports.
• Storage potential and the ability to live comfortably with sufficient space for furnishings and belongings.

Once we find “the one” I gather lots of information for you, thats when our homework starts. When we pull up to a home, I will likely know just as much about it as you do. If you are immediately unimpressed, just say the word and we can leave.. If you don’t like something inside, we can quickly finish up and leave.
On the flip side, if there is a home you like, please let me know right away. Depending on the market,
there may be an offer/bid date; meaning we will need to act quickly. This is when our real work begins! I will start to gather loads of information, to report to you. Either way, we recommend keeping a list of all
of the homes you see and tracking their selling prices using the HouseSigma app. This will give you a good pulse on the market. Whether you find a home browsing online or we suggest one to you, make sure to always call us to ask any questions. Do not call the listing agent/brokerage. We know what to ask and how to ask it so as to not put all of your “cards on the table.” If you are going to attend open houses on your
own, be sure to take one of my cards with you. If the owner is home, please don’t look too interested!

Viewing Homes - Do’s and Don’ts

As I mentioned earlier, it’s easy to let your emotions take over while house shopping. Review this quick list of dos and don’ts to help you keep a level head during your search:

DO:
1. DO Start a group chat on imessage or Whatsapp with your realtor, and anyone who will be a property decision maker, so that you can all be on the same page, all the time.
2. DO look at the home on a map first. You may find that it backs onto a power line or highway.
3. DO drive by the home during the day and in the evening if possible. Check out the exterior,
street, and neighbourhood.
4. DO attend showings and open houses armed with a list of questions. Take photos, sketch
layouts, and measure spaces. Jot down things you like, dislike, or would renovate/repair.
5. DO check the water pressure, run the taps, and flush the toilets. See how fast the water
heats up/if there are issues with the heater.
6. DO look at homes within your budget. It’s easy to fall in love with a place you can’t afford, and
you’ll only set yourself up for disappointment.
7. DO draw your line in the sand for the price you are willing to pay for any particular home.

DON’T
1. DON’T forget to take stock of storage. Look at closets, basement storage, attic space, and outdoor sheds.
2. DON’T sweat the small stuff. Watch out for high cost fixes instead, such as outdated electrical or bathrooms that require a complete overhaul.
3. DON’T overestimate your DIY capabilities. Make sure you’re not getting too enthusiastic about what you can actually accomplish yourself.
4. DON’T be afraid to move on. New listings come on the market every day, so never assume that there will be nothing as good as (or better) out there. Be patient.
 

Thanks for considering using Syd as your Realtor! It’s an exciting time, and you probably have many questions. 

Let’s start with the basics...

8 Steps To Finding The Right Home:

1. Choose an agent that’s right for you
2. Explore financing options & get pre-approved
3. Identify needs vs. wants
4. Browse homes online & schedule home tours
5. Make an offer
6. Go under contract & fulfill offer conditions
7. Update utilities & transfer services
8. Close the deal & move into your new home!

Before you head to your bank, it is important to decide
on a timeline for your purchase. Do you currently own
a home? Will you sell first or buy first? Truth is, each
person’s circumstances are completely different.

*Note: If you’re purchasing at some unknown date and selling afterwards, you may want to have professional photos of your yard/pool/garden done in the summer. I can arrange for this ASAP if needed.

We will soon ask you to sign a buyer representation agreement with us, this contract outlines our exclusive right to act on your behalf as well as offer you our experience, knowledge, skills, and support for some period of time.

We will also ask for your photo ID (driver’s license or passport) for FINTRAC identification - a legal requirement of all real estate deals. If you will be purchasing/signing on behalf of a company or estate, we will need supporting documentation that validates your authority to do so.

Identifying Needs vs. Wants

A lot of time and effort goes into finding the right home. Once you know what you can afford, it is important to= assess your needs and wants so that you can focusyour search on properties that meet your standards. For starters, consider the following:
• Location (proximity to work, schools districts,,
shopping, transit, etc.)
• Type of home (detached, semi, townhouse,
condo, etc.)
• Condition (turn-key, fixer-upper, etc.)
• Features (# of beds/baths, parking, backyard, etc.)

Also, consider all of your options, including the benefits of purchasing a new build vs. a resale home. 
Create space for everyone involved in the process to share their thoughts. If you have a partner or kids, consider allowing everyone to make their own lists and compare notes in a family meeting.

While my approach is to ensure you find your dream home, inevitably there will be tradeoffs. It’s important not to set your expectations out of reach.

Don’t expect to find something that checks off every single one of your wants, just decide what is most important to you and consider the others luxuries/ bonuses. Don’t worry, you can rest assured that we are here to help you set realistic goals and sort through the options to find you the perfect home at the best price with as many of your needs and wants as possible.

Once we gather all of this information from you, we will input it into our database and create a personalized search. You will receive daily email updates with all new listings that match your criteria along with any relevant market changes.

If you would like us to adjust your search criteria at any point, just let us know! Realtor.ca is a great tool for
browsing listings, but your search portal will be the most up-to-date.

Map out a timeline & have a strategy. Involve me in this planning ASAP.