Buying a preconstruction property can be an exciting and profitable investment opportunity, but it can also be a risky endeavour. There are several steps you can take to protect yourself when buying preconstruction in Ontario.
First, research the builder and their track record. Look for reviews and ratings from previous customers, as well as any legal disputes or lawsuits they have been involved in. You can also check with the Tarion Warranty Corporation, which regulates builders in Ontario and provides coverage for new homes.
Next, review the builder’s disclosure statement carefully. This document outlines the details of the property, including the price, completion date, and any conditions or contingencies that may affect the sale. Make sure you understand the terms of the agreement before signing it.
Consider hiring a lawyer who specializes in real estate law to review the disclosure statement and offer advice. They can also help you negotiate any changes to the agreement or provide legal representation in case of a dispute.
Before making a deposit, ask the builder for proof of financing and ensure they have the necessary permits and approvals from local authorities. You may also want to have an independent appraisal done to determine the market value of the property.
It’s essential to understand the risks associated with preconstruction properties, such as delays in construction, changes to the property’s design or layout, and potential defects or deficiencies. The Tarion Warranty Corporation provides coverage for these issues, but it’s important to know your rights as a buyer and understand the process for making a claim.
Finally, keep in mind that the deposit you make on a preconstruction property is non-refundable in most cases. Be sure you are comfortable with the amount and understand the conditions under which you may forfeit the deposit.
In conclusion, buying preconstruction in Ontario can be a smart investment, but it’s essential to take steps to protect yourself. Research the builder, review the disclosure statement carefully, consider hiring a lawyer, and understand the risks and potential issues associated with preconstruction properties. By taking these steps, you can feel confident in your investment and enjoy the benefits of owning a new home.