What Are the Advantages of Buying Your New Home at the Pre-construction Stage?
Buying your home or condo at the pre-construction stage can involve substantial savings and also allows you a much wider selection of floor plan options.
What Are the Advantages of Buying A “New” Home?
1. A fresh, clean new home means less maintenance, fewer repairs and in return, reduced expenses.
2. Your choice of finishing and home décor, resulting in a home that matches your individual taste instead of someone else’s.
3. Tarion New Home Warranty Coverage
What Is the Tarion Warranty Corporation?
Tarion Warranty Corporation is a government-regulated organization which regulates/licenses all builders and vendors of new homes in Ontario, and provides the following safeguards and benefits to all new home purchasers:
1: Deposit protection
2: A one-year warranty against defects in workmanship and materials as well as violations of the Ontario Building Code
3: A two-year warranty against defects regarding the electrical, plumbing and heating delivery/distribution systems.
4: Protection against major structural defects for seven years
5: In addition to providing warranty coverage for the individual unit, Tarion provides warranty coverage for the common elements of the condominium
6: Protection against substitutions of key elements in a new home made without the purchaser’s approval, in those cases where the agreement of purchase and sale expressly allows the purchaser to make choices regarding such elements
7: Provides compensation to purchasers for delayed closings.
Go to www.tarion.com for details of warranty coverage and limitations.
Do I Get to Select my Own Colours and Finishes?
This depends on the status of the home you’ve purchased. For pre-construction homes, colour selection is scheduled as soon as possible after the commencement of construction. You will be contacted by a representative of the design studio to arrange for an appointment. At your appointment you will select colours and finishes (carpet, flooring, tiles, cabinets and countertops) and you may elect to purchase upgrades or specialty items.
If you are moving into an inventory home, the finishes and colours will have been already selected and installed.
When Do I Get My Keys?
Keys will be available on the date that you take possession of your new home. You will be contacted when confirmation of closing has been received from our lawyer. Arrangements will then be made for key pick up at a mutually agreed upon time.
When is Final Closing?
Final closing is the date upon which you will receive title to your home or condo. For condos it will occur approximately four to six weeks after the condominium has been registered.
What Happens on Final Closing?
On final closing, the transaction contemplated by your agreement of purchase and sale will be completed in accordance with the statement of adjustments, in order to account for any outstanding occupancy fees, realty taxes, common expenses, purchaser upgrades and extras, and other Builder adjustments set out in the agreement of purchase sale. At this time, your lawyer will receive a deed/transfer of title to your home (for ultimate registration), in exchange for your payment of the outstanding balance of the purchase price.
How is my Moving Day Established?
For freehold single family, semi-detached and townhomes, you can move in on your closing date which is the date you receive title to your home.
For condominium units and townhomes, your moving day is scheduled in an orderly fashion. It starts with lower floors and finishes with the upper floors. During the move-in process, corridors and lobby areas may remain unfinished, as the final touches are postponed until the majority of units are occupied, to avoid damage to the final finishes.
Do I Need to Buy Property Insurance?
Yes, as the homeowner, it is your responsibility to obtain property insurance for your home or a condominium owner’s insurance package that covers contents and betterments, which the condominium corporation’s insurance does not cover.
What Is An Amendment?
An amendment is a document that changes any part of your original Agreement of Purchase and Sale. It usually involves items such as lockers, parking spaces and deposit structure. Any amendment must be accepted and executed by both YHD and the Purchaser and cannot alter any other portion of the Agreement. Any amendment must also be negotiated and finalized a minimum of four weeks prior to occupancy.
Will I Require High Ratio Mortgage Insurance?
For most people, the hardest part of buying a home – especially a first home – is saving the necessary down payment. If you have less than 20% of the purchase price to put down on closing, you will be required to purchase mortgage insurance through your lender. Mortgage insurance protects your lender against payment defaults.
To qualify for mortgage insurance you must be purchasing your home as your principal residence. Credit and income requirements vary dependent upon which financial institution you are dealing with. Insurance premiums apply as well. Please speak to your Mortgage Representative for details.
Does Your Home Developments Have the Right to Extend the Occupancy Date?
YHD may extend your occupancy date pursuant to the terms and conditions set out in the Tarion Statement of Critical Dates which forms on integral part of your agreement of purchase and sale. The Tarion Statement of Critical Dates sets out specific timelines for providing notice of any extension to the tentative occupancy closing date. Tentative occupancy dates may be extended provided you are given a minimum of 90 days notice, prior to your original occupancy date and no later than 30 days following roof assembly (if you are purchasing a condominium unit). It is important that you familiarize yourself with this document in its entirety.
It is important to note that in accordance with Tarion rules, “the builder is not responsible for delays caused by strikes, fires, civil insurrections, floods or Acts of God.”
What Is an Interim Occupancy Date, And How Is It Established?
Your interim occupancy date is the target date for completion of your home to permit occupancy. This date is dependent upon a number of factors, including the achievement of a threshold level of sales to permit the commencement of construction of the condominium building, and the particular location of your unit within the building. You will be kept up to date on the progress of the development and will be given a revised occupancy date once it has been established by the builder. Although you will be moving into your new home on the firm occupancy date, you will not own the unit until such time as the condominium has been registered thus permitting title to be transferred to you.
What Is Condo Registration?
Registration refers to the formal creation of the condominium corporation. The process is initiated when the builder submits plans and paperwork to the requisite governmental authorities once all the units and common elements within the project have been substantially completed. The condominium’s declaration and description are registered in the land registry office, following their approval by the requisite governmental authorities.
What Happens at Interim Occupancy?
A few days prior to your firm occupancy closing date, you will attend at your lawyer’s office to sign an occupancy agreement and to provide a series of post-dated cheques for your monthly occupancy fees.
Why Would I Need a Locker for My Condo?
Lockers are used to store large or cumbersome items that are not used on a regular basis such as bicycles, ski equipment or holiday decorations. They allow the homeowner to store certain items conveniently without having them encroach on valuable living space within your home.
Am I Allowed to Have Pets in my Condo?
Pets are permitted in YHD condominiums. It is advised however, to refer to the specific rules and regulations of your condominium of interest, before purchasing, as the rules set out the type, size and number of pets permitted.