How To Avoid The Risks Involved With New Home Purchases
Investing in a home will probably one of the largest purchases you will make in your lifetime. With decades of experience assisting new home owners in Richmond Hill, Ontario, we know that there is always an element of risk involved in every purchase. To avoid or minimize the risk of any unpleasant surprises, there are a couple of things you can do:
Become Well Informed
Attend educational seminars. Some are offered on line such as those by Tarion. Watch local newspapers as Realtors may offer home buyers seminars. Use the internet. CMHC offers some excellent advice. Most banks also offer useful information including such things as mortgage calculators so you can determine just what you can afford.
Research The Builder
Tarion no longer provides builder rating but you can check to ensure they are registered using the link here.
You can also determine if they have received an award of excellence from Tarion by clicking here.
Perhaps the best method is to go to existing homes built by the same builder; knock on the door saying you are considering buying a home from the same builder and you would like to know about their experiences in matters such as; closing on time, quality of finishes, workmanship and after sales service.
Hire A Lawyer
Make arrangements to hire a lawyer so he will be available for you as soon as you have an agreement of purchase to be reviewed. Do not sign without having your lawyer approve it or ensure there is a condition that requires you to have your lawyer approve the agreement before it becomes a firm deal.
Make certain the time period that the builder gives you for this condition is sufficient to enable your lawyer to have a reasonable opportunity to review the agreement for you. Apart from the time set out in the conditions there is no cooling off period for a new home. (With the exception of a new condominium purchased from a builder in which case you have 10 days to change your mind and terminate the transaction).
Read Documents Carefully
Read the agreement of purchase very carefully and in its entirety. Be certain you understand it. If you do not understand something ask your lawyer about it either before you sign or before your condition upon lawyer’s approval expires otherwise you will be bound by the contract.