Frequently Asked Questions

Retaining a lawyer at the beginning of the pre-construction condo purchase is advisable. A lawyer will help you review the Agreement of Purchase and Sale (APS) and other documents that you'll need to sign throughout the purchase process.

Having a lawyer can help you save time and money while also helping you understand the legal terms and mitigating your financial risk as much as possible.

Having an understanding of all the legally binding terms of your contract may mean the difference between giving the condo buyer a preferred right versus imposing a heavy financial burden on them.

In short, getting a lawyer involved early on in the pre-construction condo purchase process can help you successfully complete this major financial decision.

Platinum agents tend to offer front-of-the-line access to the best projects and suites. Below are the typical steps when it comes to buying a suite at the very beginning of its launch.

1. Select the Project

This is perhaps the most important aspect! Selecting the right project for you will involve consultations with your selected real estate professional.

2. Choose Your Suite

Now that you've picked the project, it's time to choose your suite. You'll review floor plans, views, a range of floor choices, pricing, and more, all to determine how and which suite will fit your budget.

3. Submit a Suite Reservation Worksheet

Once you determine which suite you are interested in purchasing, simply complete a suite reservation worksheet and return it to your platinum agent. The worksheet will outline the suite you are interested in, as well as the floors you'd like to purchase that floorplan on.

It'll also include your occupation and contact information. Additionally, your platinum agent will ask for a copy of your ID to confirm that the information on the worksheet is accurate.

4. Confirm Suite Allocation

Your platinum agent will confirm the suite that has been allocated to you. Once you confirm that you'd like to move ahead with the purchase, you'll make an appointment to sign an agreement. In the meantime, the suite will be held for you.

5. Sign the Agreement

If the information you provided on your worksheet is accurate, paperwork can be prepared before your arrival. It's common to sign multiple copies of the same agreement, ensuring all parties have a copy.

6. 10-Day Recession Period

Once all agreements have been signed, you'll have a ten calendar day "cooling off period." The developer is required to give you this time to review your suite decision and the agreement itself. Here at All Access Homes, we recommend that you do the following during this period:

• Have a lawyer review your agreement. They'll read through and highlight any issues that may be of concern.
• Get pre-approved by a mortgage broker. If there are any problems within those ten days, you can cancel the agreement with no penalty.

7. The Deal Goes Firm & Deposits Cashed

Once you hit the 11th day, the agreement will automatically go firm. That also means that the first deposit cheque will be cashed.

A mortgage is not required until the final possession, which is usually 3-5 years after the first round of sales for a condo in the Greater Toronto Area. At the time of the final possession, the deposit money you have already paid will be applied to the purchase price.

Every condo launch cycle is slightly different, but it's important to note that nearly all increase in price and have incentives removed as they move through various stages.

That being said, here's generally what to expect when it comes to the stages of a new condo launch:

Stage 1: Family & Friends

This stage is usually not advertised, as it's only available to close friends and relatives of the developers. They are invited to look around and buy a suite before the developer begins to sell to the public.

Stage 2: Platinum Launch

This stage is typically the best time for an investor to buy a new condo, as it offers the following perks:

• Day one pricing, which is usually much lower than at other stages of a condo launch
• Typically has the highest number of incentives
• Best suite selection (the "prime units" are often sold during the platinum phase)

Stage 3: VIP Launch

VIP agents are those that sell pre-construction condominiums but at a different volume than a platinum agent. They'll be invited to the second round of sales, but at this stage, the prices have typically increased, perks and incentives are removed, and the best suites are usually already sold.

Stage 4: TREB Agent Launch

At this stage, developers open their sales to TREB agents who may have clients. By this point, most of the best units have been sold, and prices have increased significantly; however, in some cases, "purchase perks" are added at this time.

Stage 5: Pre-Registration Invites

Have you registered on a developer's website? Then it's at this stage that you'll get an invitation to purchase before the majority of public buyers. While you don't need an agent to purchase, we recommend that you have outside buyer representation to help you through the purchase process.

Stage 6: Public Opening

This is the final stage of a condo launch. By this time, there have already been five previous purchase groups. In Toronto, our basic rule of thumb is, "If you can walk into a sales office without an agent representation, you are way too late."

An assignment sale is when a buyer who has purchased a pre-construction unit wants to sell it before it has been built. That "unit" is sold in the form of a contract since the unit hasn't been built at this point.

In simple terms, it's the process of an original buyer selling their interest in a pre-construction project to another person.

Assignment sales come with many advantages for the buyer, including:

• Less competition – typically, fewer people look at these types of listings, as they're focused on traditional pre-construction projects.
• More options – when there's a listing shortage, assignment sales are a great way to open up your options.
• Customization – depending on what phase the project is in, the buyer may still be able to select their upgrades, colors, and finishes.
• Timeline – buyers of an assignment sale get their unit much faster than a typical pre-construction project; in many cases, they can take occupancy in just a few months!
• Tax benefits – there may be tax savings to take advantage of, like HST and GST.
• Negotiating power – sellers may be more willing to negotiate things like deposits and closing dates, especially if they need to drop their equity quickly.