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Tips on How to Buy a Condo

couple in  front of one-family house in modern residential area

Buying a condo in Toronto, Canada can be considered as one of the main concern you are going to undertake in your life. It is very essential that you understand everything including the potential of a new home as well as how to cover all your bases. To have a summary about a condo building is very essential. It includes the financial well-being of the building and this summary is called, status certificate. In buying a condo, having a status certificate is very important since this is part of the process in the buying procedure for a condo building. Status certificate is prepared by the Board of Directors and to obtain it, you need to make a written request to the property management company of the condo building.

 

To have a status certificate is very important in buying a condo since it will keep you informed particularly, if there are impending complaints against the condo. Aside from that, it will offer awareness on how the condo is being managed. Here are some tips on how to buy a condo.

 

  • Determined the fees of the condo’s maintenance. The fees of a condo are determined based on the existing market price and there are plenty of builders who promote condo building in a low price to attract buyers. The inflation as well as future increase in utilities is not included in the maintenance fees or condo fees since the fees are guaranteed to increase after the 1st year of occupancy.

 

  • Cooling Off Period. You have 10 days to review the purchase of the condo unit. This is after the day you receive and signed the document about the Agreement of Purchase and Sale. During this time, you need to take full advantage of the chances to talk to a professional or ask a lawyer to assess the agreement about the purchase and sale. Bear in mind that within this period, you have the right to cancel, withdraw or dismiss this contract.

 

  • Closing Cost. The contract to buy a recently constructed condo is not regular and it varies depending upon the builder. In closing cost, you need to be aware about the adjustments that can be charge against you. It includes the closing costs regarding the legal dues as well as the taxes for land transfer, legal payments and a lot more.

 

  • Occupancy fees. Usually, if you are purchasing a condo unit, you are required to reside in or occupy the unit. This is called the occupancy closing. This is done before the builder transfer the legal rights to you. Throughout this period, you need to pay for the occupancy fees. However, you are not paying your own loan but you are paying the developers expenditures. The expenses include the interest rate that is fixed for the unpaid balance, common expenses that is contributed to your condo unit and the evaluation for the municipal duties. You can prevent paying for occupancy only if you pay the complete amount of the condo unit. However, you still need to pay for taxes and common expenditures of the unit.
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