Pre-Construction FAQ
What is a pre-construction condominium?
A pre-construction condominium is a condominium that has not yet been built. Traditionally, developers sell condominium units early
in the development process to help finance construction and other development-related expenses.
There are several advantages of buying into a pre-construction condominium:
- Price – Buying at the pre-construction phase has traditionally cost far less than buying the same unit once construction has been
completed. Keep in mind that developers need to sell a certain percentage of units to kickstart the development, so they have a
greater incentive to offer lower pricing at the pre-construction phase. - Personalization – At the pre-construction phase, your condominium suite is like a blank canvas that you get to fill in with your
choice of finishes. Kitchen cabinetry, quartz countertops, ceramic tile backsplashes and porcelain/ceramic floor choices are all
yours to select from the builder’s sample packages. - Choice – The earlier you buy, the more choice you’ll have from the range of suites available. Imagine having greater control over
your suite’s layout, square footage, upgraded finishes and even the location (floor and floorplate) within the building! - New everything – Your unit is new and so are your appliances, fixtures, countertops, flooring and more. With proper care, you
likely won’t have to repair or replace anything for years and years.
Is my deposit protected?
Yes, your deposit is protected through the Tarion Warranty Corporation up to a maximum of $20,000.
CONDO COSTS
What essential housing costs do I need to budget for when living in a condominium?
Like every homeowner, you’ll need to budget for your mortgage and property taxes. In addition, you’ll be required to pay a set
condominium maintenance fee every month. Hydro and water are metered separately in each suite so you only pay for what you
use – and keep in mind that as a new energy-efficient building, the utility costs are going to be lower than older condominium and
apartment buildings.
What do my condo fees cover?
One of the greatest things about living in a condominium is the stress-free lifestyle. Unlike owning an older low-rise home, you don’t
have to worry about budgeting for a new roof, rebuilding an old deck or having to shell out for a new furnace. Everything is covered
under your condo fees including landscaping and snow removal, security and general maintenance of all the common elements. One
simple fee covers it all!
LEGALITIES
What happens if I buy a suite and change my mind a couple of days later?
The good news is that, in Ontario, every condo buyer has a 10-day grace period to reconsider their purchase (calendar days, not
business days). If you change your mind any day within 10 days, for any reason, you can revoke your agreement of sale and get your
initial deposit returned to you without any deduction.
What are Builder Closing Costs?
Pre-sale condominium buyers should be aware of what’s called Builder Closing Costs. These costs can apply to expenses the developer
has had to assume such as unexpected development and education costs levied by the municipality, HST on appliances and utility
connection fees. Builder Closing Costs in North Bay have traditionally been on the lower end of the spectrum; budget for around 1% of
your original purchase price to be applied when you close on your purchase.
I heard I have to pay HST if I buy a new condominium. Is this true?
Yes and no. Unlike resale condominiums, new condos are subject to HST. However, if you’re planning on living in the suite yourself,
you’ll qualify for an HST rebate – and this rebate is factored into your original purchase price.
INVESTORS
I would like to invest. Can I purchase more than one suite?
Yes, you can purchase multiple suites, however your choice of suites is subject to availability at the time of purchase.
Can I purchase under a company name?
Yes, your purchase can be made in a company name but an individual must also be included on the title.
When can I resell my suite?
You are free to list and sell your suite once you have the registered title to your unit.