BRIAN'S BLOG
Pre-construction Toronto condos: The perils of buying or selling
January 17, 2014
I enjoy Toronto lawyer Mark Weisleder’s columns as evidenced by the number of them that I’ve been sharing.
In his most recent column, he correctly points out that over the past decade or so, it was a safe bet that if you purchased a condo at pre-construction prices, once the unit was complete, it could be sold at a profit. When you’ve done your research and you know the tax implications and the market, this is usually the case, but sometimes your financing can fall through at the last minute due to unforeseen circumstances, which means that you would lose your entire deposit.
The example Weislder uses in his column is a Syrian buyer whose financial situation was affected by civil war. We are not anticipating a civil war in Canada (fingers crossed), but life circumstances can change drastically over a three to four year period while you wait for a condo to be built. That’s why it’s important to protect yourself when you sign a contract with a builder.
Here’s Weislder’s advice:” Buyers should consider negotiating a clause with the builder that states that if there is a change of life circumstance before closing, such as death, serious injury or loss of employment, they can cancel the contract upon the payment of a set amount or penalty.”
Read the full article here