Condo buyers- legal hurdles for condominium buyers in Barrhaven, Nepean, Ontario
As a condo buyer, you want to keep a few things in mind when buying a brand new condo from a builder:
The plans, or sketches, which are attached to the agreement, are not legally binding on the builder. The builder can always modify these floor plans if necessary. The unit you purchase as a condo buyer may end up being smaller than what was represented in the sketches, or the dimension may be different.
The budget for the first year condo fees (which you receive as part of the disclosure package) is only an estimate. The monthly fees can always end up being higher by the time the condo is finished and ready for occupancy. As a condo buyer, you should expect that these monthly condo fees will always increase year to year (although hopefully only by the rate of inflation).
If you're purchasing a lot of upgrades or 'extras', the builder can always make substitutions of materials provided that they reimburse a condo buyer the difference on closing if lower quality materials are used.
The closing for a new condominium takes place by way of a two-step process: interim closing and the final closing. During interim closing, as a condo buyer, you're paying interest on the unpaid balance of the purchase price. When you're buying, count on an interim occupancy lasting at least several months, and bear in mind that these occupancy fees aren't credited back to you on closing- in other words, you don't get any of this money back. For this reason, most condo buyers hope that the interim occupancy period doesn't drag on for more than a few months.
Buyers need to familiarize themselves with the rules and regulations of the condo. Condo buyers with pets should know most condos restrict the number and/or size of pets you can keep in a condo unit. 
If you're buying the unit as an investment, know that most builder's agreements have restrictions on advertising for lease during the first year. If you're an investor, you may want to negotiate having this wording changed before your agreement is finalised. As a condo buyer who is also an investor, you won't quality for the federal GST new housing rebate (although you will qualify for a similar GST rebate for investors in rental property).
Finally, closing dates are estimates. A builder always has the right to extend the closing date if the unit cannot be completed on time, subject to the delayed closing rules establisehd by Tarion for new condo buyers.
This blog entry is intended for general information only for condo buyers and does not consitute legal advice. If you need legal advice, please speak to a lawyer.
Kerry Fox is a real estate lawyer practising in Nepean, Ontario.
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