You've found the newly built home you've been looking for and are ready to make one of the biggest purchases of your life. But do you know how to protect your new home?
Before you sign an Agreement of Purchase and Sale, consider these tips:
• Review the APS with a real estate lawyer to ensure you understand exactly what is included in the price of the home. If you are buying a condominium, review the disclosure statement to understand which items are part of your unit and which are considered common elements. Make sure everything that is agreed upon is reflected in writing.
• If construction has not started on the home or condominium, find out when the builder will begin and how you will be notified if there is a delay. Be sure that you and your lawyer document all details regarding deposits and delayed closings or occupancy.
A standard Addendum is required to be included in the purchase agreement. It provides additional information, as well as your rights concerning delays in construction. It is important to review this document with your lawyer.
• At the signing of the purchase agreement, you will likely be required to provide a deposit for your home. Understand that deposits on freehold homes are protected up to a maximum of $40,000 by Tarion, the administrator of Ontario's new home warranty program. Condominium deposits are covered for up to $20,000 by Tarion. Deposits over $20,000 are protected by the trust and excess deposit insurance provisions of the Condominium Act, 1998.
• Ask when you will be contacted to make selections for interior and exterior finishes. Each builder has a different policy for finalizing selections.
• Ask your builder who to contact about scheduling your pre-delivery inspection and when it will take place.
• Ask about the builder's after sales service policy and who to contact should an issue arise. Ask who to contact in emergencies, too.
• Read about the warranty that comes with your new home and understand what to do if you think you have a claim.
Sign up for the MyHome, the portal where you can manage your warranty online at www.tarion.com.