From: Mario Zammit, B.A. (Hons), LL.B.
To: Toronto Area Real Estate Buyers
Date:
Generally, purchase agreements with
Builders on new residential properties are within two types of situations:
(A) Those dealing with Condominiums where
either the entire unit or a certain component (such as common roads
in a Townhouse complex) are part of a condominium corporation and where
a maintenance fee is payable each month;
(B) Freehold properties NOT involving
a condominium.
(A) BUYING A NEW CONDOMINIUM
FROM A BUILDER
By law, the purchaser of a newly constructed Condominium
unit has a ten day “cooling off” period beginning on the
date when the builder has signed an acceptance of the offer and
has made a fully signed copy available to the purchaser. During this time,
a purchaser can review the contents of the agreement and can request
in writing any changes that are proposed to be made (or the purchaser
can provide the builder with a written notice of termination of
the transaction) which must be provided to the Builder prior to the
expiration of the cooling off period. A purchaser who decides not
to provide any such written notice within the 10 days is deemed to have
accepted the agreement as originally written.
(B) BUYING A NEW
FREEHOLD PROPERTY (NOT A CONDOMINIUM) FROM
A BUILDER
By contrast, a purchaser of a “Non-Condominium
Freehold Unit,” enjoys no automatic “cooling off” period
and any rights to have a lawyer review the contents of the sale agreement
must be inserted into the agreement itself by way of a special
condition for a lawyer’s review which is usually a special condition
schedule inserted by the builder’s sales representative, if requested
by the buyer prior to signing the offer to purchase from the builder.
NOTE
ON REVIEWS OF BUILDER AGREEMENTS
(Condo and Non-Condo)
Our Law Offices have reviewed hundreds of Builder
contracts over the last 15 years, and although agreements vary from Builder
to Builder and from project to project, there are common issues present
in virtually all such agreements.
Consequently, we are providing our clients with
a FREE special AMENDMENT on this website, being a general amendment
to the builder’s agreement dealing with these common issues, including
a cover sheet to be submitted to the builder’s sales representative
in order to address such common issues of possible concern.
Included below are two proposed AMENDMENTS which deal with
each of the two residential categories mentioned above, being one for
condominium properties and one for Freehold (Non-Condominium) properties
being purchased from a Builder.
Each of these amendments can be modified to suit
individual needs or concerns; however, for the majority of cases, the
free AMENDMENT proposed below will be sufficient to deal with the recurring
common issues in Builder contracts.
Our Law Offices still continue to provide individualized
personal service associated with an Individual Builder
Review at our MAIN OFFICE location should any of our clients require
a comprehensive customized review of a builder’s agreement in a
more personal face to face meeting.
For most “Typical or Usual” Builder Agreements,
we hope that the FREE Amendment (below) together with its cover letter
will assist you in your dealings with your Builder and help make your
purchase an easy and predictable one with no later surprises.
Sincerely,
Mario Zammit, B.A. (Hons), LL.B.
Download Cover Letter
& Amendments
(To Download, right
click on the link and select Save Target As....
Files are in Adobe PDF format, if you need Adobe Reader, you can download
it here)
Condo |
Freehold /
Non-Condo |
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If you'd like our office to represent
you on a
purchase from a builder,
please call: 416-222-1882
or
Fill in the form below:
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Please click
below for a FREE Quote:
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