There are some differences when purchasing a new home (Pre-Sale) versus a resale or previously-owned home. Generally a new home project will have been marketed before the release date culminating into a busy launch date. You should know what you are signing and make sure that you are not caught up with the hype. Here are some contract considerations for a new home:
- If you are buying strata, there is a seven day rescission period. This allows you to purchase a home providing you enough time to read and review the disclosure documentation making sure you understand what you are purchasing.
- Make sure that your deposit is protected. Is it being held in trust?
- Provide the agreement to your lawyer. A lawyer will assist you with your rights and obligations and point out some items which may not be reasonable.
- The Developer usually give you notice periods of up to 30 days before you are obligated to move-in. Be sure to know what this notice is as some developers provide less time.
- Ensure that you get your financing in order which correlates with the occupancy date.
- If you are unable to close on time, the developer has several rights including right to terminate your contract, keeping your deposit and in some cases charging you a fee.
- Developers have the right to terminate. Most developers have a clause built into the agreement allowing them to terminate the contract as a result of certain events. Usually this is reflective of sales and required pre-sale requirements.
