Buying a Pre-Construction Condo in West Toronto

Buying a pre-construction condo comes with a unique array of advantages – particularly in West Toronto, a vibrant region well-suited to all kinds of buyers.

However, the process of buying a pre-construction condo is vastly different from a traditional real estate purchase. Beyond an extended purchase and occupancy timeline, buying pre-construction introduces new, often under-considered variables to the transaction and the property itself.

Therefore, if you are thinking about buying a pre-construction condo in West Toronto, there’s a lot you’ll want to know before you begin your search.

Considering pre-construction? Our strategic advisory services can help you achieve a smooth condo purchase. Call us at 416-722-4723 or reach us by email at evan@christensengroup.ca.

Buyer Protections: The Cool Off

One way in which buying a preconstruction condo can vary from a resale transaction is pace. During a seller’s market peak, buyers are often forced to make snap decisions on a major investment due to increased competition. Although today’s market conditions are more balanced, condo buyers can still find themselves in competitive scenarios, depending on the property. This creates the risk of buying a property only to find out it doesn’t completely meet your needs.

With pre-construction, the risk of buyer’s remorse is greatly reduced. Under Ontario law, pre-construction buyers are entitled to a ten-day cooling-off period. In other words, should you change your mind at any point during this time, you are entitled to cancel your contract without penalty. Your initial deposit will also be returned to you.

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Delays Are to be Expected

Across Toronto as a whole, most pre-construction projects experience some degree of delay. Developers often establish an initial closing date that is deliberately premature, partially to attract buyers but also for administrative flexibility.

Although delays are considered status quo, there are regulations in place to hold builders accountable and protect buyers. To be specific, developers are granted two closing date extensions for delays attributable to their own operations. In the event of delays arising from circumstances beyond their direct control, such as extended periods of inclement weather or labour challenges, developers may postpone the closing date without incurring consequences beyond the initial two permitted extensions.

Almost Everything Is Subject to Change

Another variable to be aware of before you buy a pre-construction condo in West Toronto is developer autonomy. Many aspects of your unit and the larger property are subject to change during the building process.

Developers retain significant privileges when it comes to modifying units, amenities, and the building itself – even after you’ve signed a purchase agreement. Material and appliance alterations, layout revisions, and amenity relocations are all possible. While buyers are safeguarded against some modifications, it’s important to understand which aspects of your purchase are guaranteed and which may change.

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Pre-Construction Condo Fees

Prospective buyers should be aware that condo fees are also subject to alteration. During the initial sales period, developers frequently present an estimated figure for condominium fees, which is generally lower than the actual costs.

This lower estimate can be attributed to the minimal maintenance requirements of a newly constructed building, which subsequently leads to reduced operational expenses compared to more established structures. However, these reduced fees often increase within one or two years of occupancy.

Pre-Construction Closing Costs

Just like resale units, pre-construction condos are also subject to various closing costs when the purchase is finalized. Standard closing costs include Land Transfer Taxes, mortgage insurance (if applicable), and legal fees. However, there are also a number of expenses that are unique to pre-construction, such as the Tarion Warranty Fee, amenity or service deposits, and builder adjustments. Altogether, closing costs can amount to 1-4% of your initial purchase price.

You Still Need a Real Estate Agent

Buying a pre-construction condo is different from a standard market purchase in many ways, but they do share one significant commonality – the value of an expert. As a buyer, partnering with an experienced, high-performance real estate agent is crucial to your success.

An agent can provide invaluable strategic advisory services to navigate Toronto’s complex and ever-changing condo market, especially for pre-construction properties. They have access to exclusive listings and insider knowledge about upcoming developments, enabling them to find units that match your preferences and budget – potentially even before they’re publicly available.

Further, the right agent can provide insights into the neighbourhood, future development plans, and potential resale value, helping you make an informed decision about your investment.

Wish to explore Toronto’s complex condo market? Our strategic advisory services can help you achieve a fantastic result. Call us at 416-722-4723 or reach us by email at evan@christensengroup.ca.