10 questions to ask before you sign a pre-construction agreement
Signing for a home that does not exist yet is a big commitment. Ask these ten questions first, and get the answers in writing.
About the money
- What is the full deposit schedule? Amounts, dates, and whether any payment falls before you have the funds.
- Is the price HST-inclusive, net of rebates? And what happens if you do not qualify for the rebate. See HST rebates.
- What are the closing costs, and are development charges capped? Ask for the adjustments schedule. See closing costs.
- What are the estimated maintenance fees per square foot? For condos, from the disclosure statement.
About the timeline
- What is the first tentative closing date, and the outside date? From the Statement of Critical Dates.
- What is this builder's record on delays? Recent projects, not the brochure. See choosing a builder.
- Are approvals in place, and has construction financing been arranged?
About flexibility
- Can I assign the unit before closing, and what does it cost? See assignments.
- Can I rent it during interim occupancy? If you plan to lease.
- What changes can the builder make to the plan, size or finishes?
Then
Use your 10-day cooling-off period (condos) for a lawyer's review, and confirm with a mortgage professional that you will qualify at closing.
Dinesh goes through every one of these with his clients. Book a call
What does this mean for you?
Book a free 15-minute call and Dinesh will walk you through how it affects your plans.
