When you are ready to sign a New Home or a New Condominium Agreement of Purchase and Sale or Offer, here are a sampling of items to look out for:
- Hydro and water installation and subdivision charges – get written maximums put in;
- Development charges and levies – get deleted or written maximums;
- The vendors lawyers’ Law Society Levy – get it deleted – you pay yours, they can pay theirs;
- Driveways – they say it is paved, does that mean base and finish coat or only a base coat?
- Damage deposits – get a maximum and make sure there is a process for obtaining a refund
- Mortgage clauses – are you stuck with the builder’s mortgage and terms? is there a clause requiring you to accept the builder’s lawyers undertaking to discharge the mortgage without a discharge statement or direction to pay funds to the lender? is the builder trying to make you pay to obtain partial discharges of a blanket mortgage
- Condos – do you own your parking and storage locker or is it only exclusive use?
- Survey – who pays? When do you get it?
- Extensions – how long? Are you contracting out of your Ontario New home Warranty rights?
- Title – is there a clause that says you have to accept the builders undertaking to give you a deed if one is not available on Closing.
Resale Offers
Just a few items to mention:
a) in a condo offer make sure the Vendor supplies at Vendor’s expense a Status Certificate and that the deal is conditional on review;
b) for a freehold ensure you have a current survey showing all bildings and structures.
c) make sure you list those items you really want included in the purchase price;
d) ensure that requisitions on title may be made until at least the week before closing and please give your lawyer at least a month to prepare for closing;
There are many more issues that arise in an Agreement of Purchase and Sale or Offer. For more information ask your lawyer or read my articles at www.schwarzlaw.ca. Remember only a lawyer can provide legal advice, that’s the law. When you select a lawyer find one who knows real estate and wants a long-term relationship.