Frequently Asked Questions From New Home Buyers
There are also several matters you must be aware of when you are making your decision as between a new home and a resale property. With several years of experience helping home buyers throughout Richmond Hill, Ontario, the lawyers of Blackburn Lawyers have complied a list of common client questions:
When will I be able to move into the new home?
Why would this be an issue, after all there is a closing date in the agreement of purchase? Check the fine print. In the Tarion Addendum you will see the builder has the right to extend the closing date up to one year.
My home will be just like it appears in the plans. Maybe not!
Virtually every new home agreement of purchase will contain provisions that allow the builder to make many modifications. Read the fine print carefully. They usually can construct a different elevation, change the grade, build your home as a reverse mirror image, eliminate the door from the garage to the interior of the home, make changes to the plans, substitute materials, change the location of windows and mechanical installations, build it as a walk out (at you expense), etc. Read your agreement carefully to avoid surprises and possible disappointments.
I have to pay how much?
If you are not prepared you could find the builder requesting a considerable amount of money you were not planning on paying for your home. In the agreements you will find the term adjustments. This refers to additional charges for items that will be added to the purchase price. Often only words are used to describe the expense such as the cost of a hydro meter but without a dollar amount. As a result, you could be charged $200.00 or $1,500.00, whatever sum the builder thinks is correct. Builders can be very creative with the items they refer to as adjustments. These charges can amount to several thousand dollars.
Items builders will add to the purchase price may include: hydro, water and gas meters, a security deposit for grading, municipal levies, increases to the cost of levies, your Tarion warranty fee, cost of a survey, electronic registration and documentation charges, their own lawyers’ transaction levy, a sum to discharge their own mortgages, the cost of the blue box and many other possible charges. If you encounter these adjustments, if they can’t be deleted in your negotiations insist upon a “cap” or upper limit being inserted in your agreement, in writing, so that you will actually know the true amount of money you are being charged.
The salesperson told me that …
Do not assume it will happen. If it is not in writing it is not an enforceable agreement, definitely get it in writing.