Buying a Waterview Condominium or any other new build condo from the builder comes with certain obligations, expectations and obvious items that can change. LJM Developments is a respected boutique builder with projects that have gone well in their building process. As a buyer of a pre-construction condo (or in WatervieW’s case, during construction), there are a slate of items you should be aware of as a buyer.
Most pre-construction builders require a larger deposit than buying a resale home or condo. This of course helps the builder in ensuring the build process is completed on time and on schedule. Depending on the builder these amounts can differ and be as high as 20%. LJM works hard to keep deposit schedules as manageable as possible.
Cooling Off Period
Ontario allows a 10-day no questions asked cancellation period if you should choose to rescind your offer on a new build condo. This helps buyers get the financial approvals they need and to ensure it was the right choice for them.
Every builder tries to stick to a schedule to ensure that homeowners have a realistic date to move into their new home. However, there are literally 1000s of reasons why delays happen, from unexpected inclement weather to permitting delays. As a buyer of pre-construction be prepared for a delay and do not give notice at your current residence until the move in date is set for final notice by the builder.
On Par Changes
Between the design phase and building phase a number of things can change in the building process and available products that can potentially change amenities, appliance brands, potential slight changes to layouts and even fixture changes. These are generally only changed when suppliers change availability, but great builders like LJM realize these changes are inevitable and invest the time in choosing quality suppliers that offer similar quality items every year.
Realize that there is a period of time that you may be able to move into your condo unit, but at which time the ownership has not actually transferred to you. During this period, you will be required to pay ‘rent’ in the same amount of your mortgage and association fees in order to occupy the unit until actual ownership changes hands.
There are extra fees that are assessed to new build condos that are not charged on resale condos. These fees are not fees the builder charges, but fees that come with new construction. Such as land transfer fees, closing costs that include development fees from the municipality as well as HST on the new sale are all assessed after closing.
Maintenance & Condo Fees
There are monthly condo fees that are associated with every unit in a new building, regardless of where the building is located – London, Ottawa, Niagara, Toronto or GTA areas such as Hamilton, Burlington, Grimsby, Markham and Stoney Creek, or elsewhere in Ontario. These associations are responsible for keeping your communal areas in good repair, the building kept up to date with needed repairs and follow the direction of the board of the condo association. Ensure your voice is heard in your new community by attending condo association meetings and understand how these fees are assessed.
Whether you are a mature adult, 50+ baby boomer, or senior considering buying a new build LJM Development condo like WatervieW or from another builder, these items should be on your radar of understanding. Knowing exactly your obligations and responsibility as well as that of the builder can ensure the process goes as smoothly as possible.