New Condo vs. Resale Condo: Key Distinctions

When choosing between a new condo from a developer and a resale condo, several pivotal differences come into play:

  1. Cancellation Privilege: New condo buyers in Ontario benefit from a 10-day window post-agreement to reassess their decision, review documents, and seek legal counsel. This safeguard is absent for resale condo transactions.
  2. Disclosure Details:
    • New Condos: Buyers receive a comprehensive disclosure statement from the developer. This package details property specifics, pet regulations, budget breakdowns, the builder’s leasing intentions, and amenity completion timelines.
    • Resale Condos: Buyers must request and obtain a status certificate from the condo corporation, which offers insights similar to the disclosure statement, including unit definitions, common element descriptions, and condo operation by-laws.
  3. Guidance Materials: New condo buyers receive an informative guide from the Condominium Authority of Ontario detailing condo governance and owner obligations. Additionally, new condo purchase agreements now mandate a Condo Information Sheet acknowledgment.
  4. Warranty Protections:
    • New Condos: The Ontario New Home Warranties Plan safeguards newly constructed condos, administered by Tarion under the Ministry of Government and Consumer Services.
    • Converted Properties: Converted condos now fall under this protection, albeit with some exclusions for pre-existing elements’ conditions. Key warranty aspects include:
      • Deposit Security: Coverage up to $20,000 safeguards against builder insolvency.
      • Occupancy Delays: Compensation provisions exist if occupancy timelines are breached.
      • Structural and Material Defects: Warranty spans one to seven years, covering various defects and structural issues.

In essence, while both new and resale condos offer unique advantages, understanding these distinctions ensures informed decision-making tailored to individual preferences and priorities.

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