Things to Know when Considering a Preconstruction Condo to Buy
Buying a condo during the pre construction stage is a different process as the unit is still non-existent. Technically, you are paying for a home that is still being constructed or in the plans of being constructed. Presale condos are commonly offered at a discounted price to convince apprehensive buyers. The advantageous price and with proper diligence, you can make the most out of the benefits of buying your condo during the pre-construction stage.
- Floor measurements – The stated floor area might not be exactly what you’re getting. Developers would usually indicate the square footage up to the boundaries, which includes part of the area covered by the walls. Carefully review the floor plans to check the floor areas of the rooms within the unit.
- Ceiling height – The indicated ceiling height could still be reduced to accommodate ductwork, mechanical and electrical facilities. Ask the developer if the ceiling height is already the finished product or if it still includes construction allowances.
- Changes you can make – Presale condo offers commonly include the option for the buyer to customise the unit or to make some changes to the floor plan, add features and/or specify placements of fixtures. Verify with the developer as to the extent of changes and which aspects of the condo you can change.
- Location of building amenities and facilities – Review the condo plans to know the location of the building amenities and facilities. You might want to be near the exits, but far from the common areas and amenities. Being near ventilators, heating and cooling facilities might also affect your living conditions.
- Construction details – Ask as many questions as you can regarding the condo’s construction details. Are the units sound-proof? Is the parking heated? Are there any energy-efficient features in the building? Who will operate the water, heating and other building facilities? Will there be features to accommodate those with mobility limitations?
- Ask for any construction plans in the area – The promised views might not be there for long. Inquire if there are any construction plans in the near future. Any new neighbouring condo building could disrupt your city views, sunlight and airflow. The construction can also potentially be noisy and an eyesore.
- What comes with the price – Some components of the condo unit might not be included in the quoted price. Parking slot, lockers, extraneous finishes, appliances and amenities could be extra to the condo price. Know exactly what you’re paying for.
- New Home Warranty coverage – New Home Warranty aka Tarion is the buyer’s assurance that the condo construction will be done properly and that it will meet all quality standards and legal regulations. New Home Warranty coverage usually ranges from five to seven years after building completion.
- Occupancy schedule – When is the expected completion and delivery? When can you move in? Delays are not uncommon with new condominium constructions. Does the developer have the option to extend the occupancy? What are your options in case of delays? Consider possible delays when planning your move and financing.
- The Disclosure Statement – The Disclosure Statement indicates all the deliverables of the developer to the buyer – the building’s amenities and features, the governing documents and the financial condition and budget of the condominium corporation. Some areas require developers to provide buyers with the disclosure statement prior to signing the sales contract.