| Buying

On Buying New Build

At the Christine Cowern Team we work with many great professionals to ensure that your purchase or sale goes as smoothly as possible! This week we welcome Gary Wong of Cohen Law to our blog to talk about what you need to know when buying new build from a builder.

When buying a new home or condo from the Builder, we strongly advise Buyers to have a lawyer review the Agreement of Purchase or Sale (prior to the transaction becoming firm) in order to advise the Buyer about the typical hidden closing costs in the Agreement which can add between $8000.00 – $20,000.00 to the final price of the home! These are usually labeled as “Closing Adjustments” and they are buried into the body of the Agreement.

Typical “Closing Adjustments” include:  Tarion Enrollment Fees, Development Levies, Art and Park Levies, Hydro, Gas and Water meter installation and/or energization/connection fees. These additional closing costs are often opened ended but your Lawyer can help you obtain a “Cap” (maximum amount to be charged) on the Closing Adjustments.  Your lawyer can also address any issues surrounding HST Rebates and Assignment or Leasing restrictions in the Agreement.

In a recent case involving one of the Christine Cowern Team’s Clients who was purchasing a home from the Builder, we were able to obtain a cap of $8000.00 on the closing adjustments.  When the final closing occurred, the closing adjustments charged by the Builder amounted to over $30,000.00 to our client’s dismay! Fortunately, because of the cap, the Builder could only charge $8000.00 and our client saved approximately $22,000.00 in additional closing costs.  Needless to say the clients were relieved that the Christine Cowern Team had advised the Buyers to retain a lawyer to review the Agreement before firming up the deal!

Are you considering purchasing a home from a builder? Would you like more information about the importance of hiring a real -estate agent and a lawyer to review the builder’s Agreement of Purchase or Sale? Contact us at hello@christinecowern.com or 416-572-1380.

*Cohen, Barristers & Solicitors is a boutique firm that provides its small business and individual clients with practical results-oriented solutions. Their real estate practice is primarily focused on residential real estate purchases and sales and mortgage refinancing. They are client focused, working closely with real estate and mortgage agents to complete your home purchase or sale. Their philosophy and business culture is built on experience, client focus and entrepreneurial spirit. Visit their website or contact Gary directly at gwong@cohenlaw.ca or 416-380-7550.

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