Do homework when buying a condo before it’s built: Laredo
By Kirsten McMahon, AdvocateDaily.com Managing Editor
“Who are you buying it from and what is their track record?” says Laredo, principal of Laredo Law.
While these condos present a tempting opportunity to prospective buyers, they come with risks, including the rare case of a builder cancelling the entire project, the article notes.
“So far this year, two projects representing 239 condominium units in the Greater Toronto Area have been cancelled, according to data from Urbanation Inc. Between 2016 and 2018, builders scrapped plans for 6,729 units,” CTV News reports.
Laredo tells the news outlet she encourages her clients to research the builder first, adding most of the bigger companies that have been around for a long time tend to get the job done.
Prospective buyers should also look at the way the company will construct the building and unit, she says, including the materials they’re using and if they’re building to standard or above.
If buyers are purchasing without a lawyer, they can also be hit with hefty closing fees, Laredo tells CTV News, adding that she has seen agreements that include $10,000 to $15,000 in additional costs at closing for things like installing meters or conducting the final inspection.
“That can be very difficult for a first-time buyer. All those amounts make a difference, especially if they’re just trying to get into the market,” Laredo adds.