Purchasing a condo in Toronto is one of the best investments you can make in your life. Many investors and clients have been asking for opinions when they are purchasing a pre-construction condo. There has been a drastic increase in the number of condos built in Toronto over the last few decades. However, some people have ended up making some terrible mistakes when they are purchasing a property or condo in Toronto. The following are some of the mistakes that you need to avoid when purchasing a condo .
Trusting the floor plans
Trusting the floor plan of a condo is one of the greatest mistakes you can make when purchasing a condo. You will realize that most of the condo units are small, but they are advertised as being large. For instance, a professional who works in one of the video production houses in Toronto realized that the size of the condo he had bought being 560 square feet instead of 700 sq ft.
This is something that has also been proven to be true by some of the real estate lawyers. In fact, most of the condo sales staffs are known for including the terrace or balcony measurements when they are computing the total area of the house floor. They can also use the measurements of the external walls when calculating the base room areas.
As a condo Investor, you are discouraged from relying on the verbal assurances given on the sale brochures or advertised floor models. Instead, you start negotiating the price once you have confirmed the actual details of the plan layout and the sizes of the different rooms.
They don’t hire a lawyer
Irrespective of whether you are purchasing a pre-sale or anew condo, you should know that the purchase agreement made is legally binding. Having a legally binding agreement will spell out the conditions of the condo for sale and what you are getting. You should avoid signing documents without legal representation as this might subject you to some terms that you do not want or you don’t understand.
Failure to secure a warranty
A provincial warranty should cover all the new-built lofts, homes and condos. However, some homes are not covered. Warranty coverage has been made mandatory in some provinces such as Ontario, Quebec, and B.C. For instance, in Ontario, building a house or a condo without being registered is considered to be illegal. Home buyers are supposed to get a warranty before buying any property.
Accepting delays without a fight
Some few years ago, investors were faced with a problem of their condos not being ready on time. Builders could not explain why such delays were happening. However, things changed from 2006 in Toronto when a condo investor challenged the builder in court. Since then, builders are supposed to compensate the owners for the days. In fact, all the critical dates should be included when signing the contract or the purchase agreement. The builder is now required to seek for an extension in case they miss these critical dates. The buyer can either seek compensation or agree.