While condominium developments have played a major role in the Greater Toronto Area for years, there are strong signs that their popularity is spreading into much smaller areas outside of the “big smoke.”
Condominium sales are on the rise in smaller Ontario communities, and the trend doesn’t look like it will slow down anytime soon.
Buyers of pre-construction condos benefit from several layers of consumer protection. If you’re thinking of buying one, here are a few important facts to know:
Your deposit is protected
Deposit protection covers you in cases where your builder goes bankrupt, fundamentally breaches your agreement, or the project you bought into gets cancelled. It also applies in situations where you exercise a statutory right to terminate the purchase agreement, such as when completion of your home is extended beyond the latest allowable date indicated in the addendum section.
When you buy a condo unit, you benefit from two levels of deposit protection. To begin with, your deposit is protected by the trust provisions of the Condominium Act. Under the act, your builder must hold your deposit money in a trust account. As a second level of protection, if for some reason your deposit was not placed in trust, Ontario’s new home warranty program provides protection for up to $20,000.
You have time to change your mind
As a buyer of a pre-construction condo, you’re entitled to a “cooling off period” of 10 business days after you sign the purchase agreement to review the details once again and generally think things over.
If on further reflection you decide you no longer wish to go through with the deal, you’re able to terminate your agreement within this period and get your deposit back.
Your condo comes with warranty coverage
New-build condos in the province come with a warranty from the builder and backed by Tarion, the organization that administers the warranty.
The coverage on your condo unit takes effect once you take occupancy and includes one-year, two-year and seven-year warranties that cover up to $300,000. This coverage includes everything from issues with workmanship and materials to major structural defects.
Not only is there warranty coverage on your individual unit, but also on the common elements, which are the shared areas outside your unit such as parking garages and fitness rooms. This warranty takes effect on the date your condominium project is registered and is managed by the condominium corporation. (NC)
Find more information about buying a new condominium at tarion.com.