There are a lot of variables when it comes to purchasing a home from a Builder. Some Buyers think it’s cheaper to purchase directly from a Builder, but it’s important to read the fine print in the offer to ensure you understand what the hidden costs are outside of the purchase price. These upfront costs at closing will be the variable. If in double, hire an agent so you will be properly represented. A good realtor should guide you thorughout the purchase process from pre-purchase to the day you get the key to move into your new home.
BUYING A NEW CONSTRUCTION CHECKLIST
①Pre-purchase period:
□ You want to be represented. Hire a trusted agent and get a Buyer purchase walk thru
□ Get a Pre-approval. Decide how much you wish to spend.
□ Deposit ready in bank [generally 5%-15% of purchase price]
②1 week before sales event [coordinate with your real estate agent]:
□ Decide size of unit, number of bedrooms, if parking and locker prices are additional to purchase price, any builder’s incentives being offered at the time
□ Review floor plans
□ Make selections
□ Hire a lawyer
□ Builder’s purchase selection instruction
③Day of purchase:
□ Bring cheque book
□ 2 photo ID for each purchaser
□ Deposit
□ Circulate copy of purchase agreement to lawyer
④10 day recission period:
□ Get lawyer to review offer, builder’s closing cost, tarion warranty etc.
□ If proceeding with purchase, provide further post-dated cheques to Builder
⑤New construction:
□ 10 day recission period upon signing
□ 2 closings - interim closing at occupancy, and final closing when the building is registered
□ Occupancy fees to Builder before you get title [typically 6-8 months]
□ Ontario and Toronto Land Transfer Tax [refer to First time buyer rebate]
□ Closing cost, lawyer’s fee and disbursements, city levies, builder’s closing cost and adjustments
□ Pre-delivery inspection PDI
□ Tarion Warranty Form
Ontario Land Transfer Tax + Toronto Land Transfer Tax Chart
Provincial Land Transfer Tax
[Applies to Ontario Properties including Toronto]
0.5% on the first $55,000
plus 1.0% of the amount from $55,001 to $250,000
plus 1.5% of the amount in excess of $250,001 to $400,000
plus 2.0% of the amount in excess of $400,000
Toronto Land Transfer Tax
[Applies to Toronto Properties only]
0.5% on the first $55,000
plus 1.0% of the amount from $55,001 to $400,000
plus 2.0% of the amount in excess of $400,000
*First time buyers are exempted from Toronto Land Transfer Tax for purchase under $400,000.
**First time buyers can claim an Ontario Land Transfer Tax rebate of up to $2000
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