Prepare For Pre-Sale Purchase

Buying a condo or home at "pre-sale" or "pre-construction" stage, directly from the builder? There is no doubt that you can save some money and get desireable units by buying before the construction starts, there are also some risks involved in this type of purchase. IE:

1. Delay in development
2. Cancellation of development
3. Higher than expected costs of construction that may be downloaded to the purchaser.
4. Possible devaluation of the development if the real estate prices decline in the area.

Here are some steps you can take to protect yourself:

• Before signing the pre-sale contract clarify whether you will receive interest paid on your deposit money should the proposed development not proceed.  
• Obtain a professional advice from a licensed real estate professional or a lawyer before entering into any contract.
• Carefully review the developer's disclosure statement.
• READ THE FINE PRINT

In the light of recent events, the Ministry of Finance and The Superintendent of Real Estate are exploring the need for measures to help buyers make informed decisions. Click here for more info. 

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