Why should I purchase Pre-Construction Condos Vs. Resale?

There are definite pros to investing in pre-construction condos.

Choose a condo that fits your goals and taste
Buying at the pre-construction stage offers buyers a lot more choices – from selecting the right floorplan, to the floor and exposure. Unlike resale, where only get to choose from what’s listed on the market at that point in time. Appliances and finishes will be old and likely dated. Wear and tear will mean renovations will be needed, and the lifetime of appliances will be shorter. During the later construction stages and just before occupancy, buyers get to select specific interior finishes and customize to their preferences. YOU pick the colours for everything – the kitchen cabinets, tiles, floors, bathroom tiles and floors. Choose from the builder’s selection of both standard or upgrade packages and design your own dream condo. Upon closing, new condo owners get everything untouched and brand NEW.

Buy at today’s pricing and lock in ROI
Historic market performance has proven new construction condos deliver solid, reliable ROI. For example, in 2014 condos were selling around $600/ sqft in Downtown Toronto, and today resale is close to $1,000/sqf – that’s a 67% increase! Interestingly, pre-construction condos are typically sold at market rates, matching current resale values. However, price appreciation once construction is complete is considerably more relative to comparable resale condos.

Continue to build equity between purchase and closing
Most resale purchases will require you to pay anywhere between 50% to 100% at contract signing. Pre-construction condos on the other hand have a more flexible and extended deposit structure. You can typically deposit between 15% to 20% to lock in your purchase.  Further, the deposit is collected in instalments over the first over 18 months, broken down in to 5% payments with the final 5% to be paid on occupancy. With the right purchase, you get the benefit of full price appreciation on closing, leveraging your initial 15% to 20% purchase deposit. This also gives you the advantage of more time to save, and the opportunity to invest the remaining capital elsewhere. The deposit structure can vary by Developer and project, you can always ask for an extension or negotiate an alternate structure.

Why do I need a Real Estate Agent when I'm buying pre-construction from a Developer?

Given the dollar value at stake, investing in real estate is likely one of the largest purchases you will ever consider making. The Sales Team at the Developer’s Presentation Centre is hired to represent the Developer in your transaction. Partnering with a qualified Real Estate Agent will ensure your interests and goals are represented in negotiations and reflected in the final contract you sign. Agents help identify your investment goals and purchase criteria, conduct thorough market research and present data to inform your decision. They guide you through the end-to-end pre-construction buying process, from when you first hear of the project to when you close years later, either moving in yourself or renting to someone else. I personally specialize in pre-construction condo sales, and have firsthand experience working with leading Developers. My clients benefit from my insights on project site plans, unit layouts and floor plans, neighborhood and market trends, and condo leasing process. I am also inclined to present a thorough and unbiased competitive analysis of comparable projects, something the Developer’s Sales Team would not do. The most critical point to note is that it doesn’t cost you anything to have your own agent. Agent Commissions are paid fully by the Developer to realtor brokerages. You essentially get an expert consultant representing you for free!

What type of unit is the best rental investment?

Rising rents in Toronto are pushing a majority of the market to rent smaller units, typically Studios that go between $1,700 to $1,900 per month and are considerably more affordable than renting anything larger than a 1 bedroom. Studios tend to be popular with students, recent graduates and young professionals that have are just starting their career. Professional individuals, couples and young families gravitate to 1 bedroom, 1 plus den, and 2 bedroom units.

Do I need to buy parking with my unit?

Parking spaces are a significant investment. Prices can vary between Developers and projects, and can typically range anywhere from $40,000 to over $80,000 for one underground parking spot. A good way to determine if you could benefit from investing in a parking spot is to consider if it is at all possible that you could live there in the next 5 to 10 years and would need a car. If your answer is yes, then you should play it safe and consider buying one, assuming that it would be much harder to find a spot for sale at a later time. It is important to note that prices for parking spots appreciate just like condos themselves, so you can expect to later sell with gains. If you’re investing in a 2 or 3 bedroom that would likely be rented to a family, or if you’re buying in a neighborhood with a lower walk and transit score and where a car can make daily commuting easier, it would make sense to strongly consider making the additional investment in a spot. If on the other hand, you are only looking for a rental investment with no intention of living there yourself, then purchasing with parking spot becomes less necessary. Further if you are buying a smaller unit, 1 bedroom in or Studio in a neighborhood with an excellent walk and transit score, you could easily pass on a parking spot. Consider this – a $50,000 parking spot rented at $200 per month will take about 20 years to pay off.

Is the balcony or terrace included in the condo size?

No, when looking at condo floor plans you will find there is the interior and the exterior square footage noted. The interior size is for the interior of the building and the exterior size is of the condo’s outdoor space such as a balcony and/or terrace. Important to note that the condo unit’s monthly maintenance fee is calculated only on the interior size of the unit. This is because balconies are only for your use but are actually owned by the condominium corporation and covered by the common elements warranty.

Common Elements

Some condominium buildings include ‘common elements’, which are shared facilities in the building that every condo owner has access to and can enjoy. (e.g., recreational facilities, lobby, elevators, parking garage).Your monthly maintenance fee covers the expenses for maintaining these common elements.

Exclusive Use Common Elements

Depending on what kind of condo you’re buying, you may also have access to ‘exclusive common elements’. These may be things like balconies that are only for your personal use but are actually owned by the condominium corporation and covered by the common elements warranty. You will find these details in your agreement of purchase and sale and disclosure documents.

What is the “Cooling Off Period”?

Section 73 of the Condominium Act provides pre-construction buyers in Ontario with a 10 calendar day period during which they can rescind their sales agreement for any reason. The market refers to this time as the Cooling Period. Start and end dates The 10 day period includes weekends and holidays. The 10 day period begins when the contract has been signed by the buyer and executed by the Developer. As soon as the 10 calendar days are up, the contract becomes legally binding. Your deposit cheque is not cashed until the 11th day once your deal has firmed.

Eligibility and Exemptions
Section 73 of Ontario’s Condominium Act only applies to contracts where a pre-construction condo is purchased directly from the Developer. Section 73 of the Condominium Act does not apply to any other type of residential real estate purchase, including assignment sales or resale.

How do I cancel (rescind) my signed contract?

You have 10 calendar days (the Cooling Off Period) from the date your contract is executed by the Developer to cancel your contract without any penalty. You must provide your intention in writing, and ensure it is delivered to the Developer’s Sales Team in due time. I facilitate this recession process for my clients, ensuring the required paperwork is completed and that their deposit cheque is returned.

What happens if my financial situation changes and I can’t close on the property in a few years? Can I decide not to close?

It is up to the Developer’s discretion to allow an “Assignment” or “Assignment Sale” where a buyer sells their unit before Final Closing. I work directly with the Developer to ensure this critical clause is written into my clients’ contracts. I also inform my clients of any terms around assignment that might create limitations. For example, Developers might require that at least 70% of their units are sold before any buyers can sell. Some Developers also charge an Assignment Fee, which can range anywhere from $1,000 to $6,000.

What is Interim Occupancy?

As construction is winding down the Municipality grants the Developer permission to allow buyers to begin occupying their units before it is officially registered. This means you are legally allowed to occupy your suite, but the developer can’t give you the “title” to your property. The Interim Occupancy is the time between when buyers take possession of their unit and when they have ownership. This is part of the typical process with pre-construction purchases, so don’t be concerned.

Is all building construction complete before Interim Occupancy begins?
Typically both buyers and Developers push to have people start moving in as soon as their units are ready. Certain residential floors or certain project elements might still be under construction.

How do I get my keys?
The Developer will send your Lawyer an Interim Statement of Adjustments. At this time, you’ll sign the Interim Closing papers and provide any further deposit payments or Interim Occupancy Fees in the form of post-dated cheques. On the day of Interim Closing, you’ll be notified when your keys are ready for pickup, usually from the Developer’s site office after 3 p.m.

Your Lawyer will notify Utilities Companies of your interim occupancy date to arrange for a meter reading and to change over all applicable utilities to the unit, such as electricity, water and taxes.

Interim Closing Deposit
Your Interim Closing deposit is due during this period.

Length of Interim Occupancy
It’s not possible to set a defined interim occupancy period across all projects, however it typically takes several months. Once constructions is complete, the Municipality will do a thorough inspection of the completed property to ensure the Developer has delivered exactly what was presented in their original site plans. You must pay the Developer an

Occupancy Fee
during the Interim Occupancy period.

Occupancy Fee
The interim occupancy fee is like a rent paid to the Developer for the right to live in the unit. It does not accrue to the mortgage. The Interim Occupancy Fee is based on:1. Interest on Unpaid Balance of Purchase Price (the rate is set by the Condominium Act)2. Estimate of Maintenance Fee (Common Element Fee)3. Estimate of Property Taxes (apportioned monthly)

Do I still pay Mortgage?
No, you are not on the hook to make any mortgage payments during this period. The Developer technically still owns the unit and so your mortgage doesn’t kick until you have ownership.

What is Tarion?

For more than 40 years, Tarion has provided new home warranty protection to more than two million Ontario homes.  We serve new home buyers and new home owners by ensuring that one of their life’s biggest investments is protected.  Almost every new home in the province is covered by a new home warranty.  This warranty protection is provided by Ontario’s builders and lasts up to seven years.  It is backstopped by Tarion.  More than 365,000 homes are currently enrolled in the warranty program.  Every year about 50,000 new homes are enrolled.

serves Ontario’s public interest by enhancing fairness and building confidence in the new home buying experience. Tarion is tasked with administering the Ontario New Home Warranties Plan Act (ONHWP Act)

Tarion's Ontario Builder Directory

It is always important to invest with a builder who has an excellent track record of sales, construction, delivery and execution. Experienced and reputable builders always deliver quality product that gives all homeowners great pride. One way to research a builder on your own is to look them up in

Tarion’s Ontario Builder Directory
section to ensure they are registered with Tarion. You’ll learn how many homes they have built in the last 10 years, and whether they have had any claims with Tarion over this period.

What is a Master-Planned Community?

One of the best investment strategies is to invest in the early stages of master-planned communities. These communities usually have multiple condominium towers or townhomes, retail and commercial office space, pedestrian paths and public green spaces. Some communities also have integrated public transit routes. As more families choose an urban lifestyle, they prefer these communities where they can live, work, play and thrive. Day-to-day groceries, banking, indoor and outdoor children’s activities, new community centres, daycares, co-working spaces all at walking distance within your community. Master-planned communities are becoming more popular in the GTA – just look at the Vaughan Metropolitan Centre, Erin Mills Mississauga and downtown’s Garrison Point project. With master-planned communities, you are investing into the future of the community.

What is an Assignment?

An assignment is essentially a sale of a contract or right to acquire property. An assignment is a transaction whereby the original purchaser (the “Assignor”) of a property sells, and thereby transfers, their interest and obligations under the original contract to a new purchaser (the “Assignee”). The Assignee will generally assume all of the Assignor’s duties and obligations under the original Agreement of Purchase and Sale. These rights and obligations are stated in the original Agreement of Purchase and Sale and include terms such as interest payments, taxes and maintenance fees during interim occupancy. Upon completion, the Assignee is granted the title to the real property and will incur all final closing costs.
a) Assignor: An Assignor is the original buyer of the unit from the Builder/Developer.
b) Assignee: An Assignee is the buyer of the Agreement of Purchase and Sale from the Assignor.

Is an Assignment legal?

An assignment is legally permitted unless otherwise expressly prohibited in writing in the original Agreement of Purchase and Sale. An assignment fee may be charged by the developer and is normally a cost borne by the Assignor (the original purchaser).

Is it necessary to get permission from the Seller/Developer to assign the Agreement of Purchase and Sale?

You need to consult the Agreement of Purchase and Sale. Generally, Developers will not permit assignments without the Developer’s consent, therefore every situation requires consultation with the Developer and your lawyer. Please note, there have been incidents where an unauthorized assignment has resulted in termination of the original agreement and the withholding of the deposit.

Will the Assignor's or Assignee's lawyer's services be adequate?

It is essential that the Assignor and Assignee each retain a lawyer with expertise in this area of real estate.

Can the Assignor's REALTOR® market on the MLS?

It all depends on whether the developer permits advertising of the assignment. Refer to the original Agreement of Purchase and Sale to see if there are any prohibitions against listing the assignment or consult the Developer (Most Agreements of Purchase and Sale contain such a prohibition).

What if the construction, occupancy, closing, or unit transfer date is delayed?

In the event of a delay, the assignment is still valid: the Assignee has agreed to take on their agreement and all responsibilities involved in it.

What if the Assignee doesn't close?

This is no different than in any sale. The Assignor in most cases is not released from the obligations under the Agreement of Purchase and Sale. Accordingly, both the Assignor and Assignee will be liable.

What is the cost of assigning an Agreement of Purchase and Sale?

If the Developer consents to an assignment, there will generally be an administration fee and legal fees. These fees will vary. Consult the original Agreement of Purchase and Sale and the Developer.

When does the Assignor get their money?

In an assignment, depending on the closing date and the terms of the assignment agreement that Assignor and Assignee agreed on, the Assignor is usually paid when:
a) the Assignee gets possession or occupancy or,
b) when the original seller approves the assignment, if applicable or,
c) when the Assignee obtains legal title.

Who gets the interest, if any, payable by the Builder on the original deposits?

Unless otherwise specified, the interest is likely to be paid to the Assignor.

Who pays the interim occupancy costs?

Once assignment is finalized, the Assignee will typically pay occupancy costs through to the final closing and will pay the final closing costs unless specifically negotiated otherwise.

Does the Assignor have to claim Capital Gains for tax purposes?

Whether a resident or non-resident, the Assignor should discuss this question with a tax advisor.

What should I do when I see a house online that I like?

Call your buyer’s agent: the agent you are working with to find your home. It’s best that you work with one real estate agent throughout your search because that person learns what you like and dislike and will invest a lot of time vetting properties for you. That person also represents your best interests only. When you call the agent advertising the home, you are dealing with the seller’s agent, so, while they can assist you, they are also trying to get the best price for the seller.

Can you show me a house if it’s not your listing?

Absolutely. As a buyer’s agent, I can show you any house listed in our MLS system.  As mentioned above, working with our team as your buyer’s agent ensures that your interests are protected.

How do we write an offer?

When you find the property you want to make an offer on, our team will run a Comparative Market Analysis (CMA) to help you determine a fair offer amount. We will also guide you through the additional terms of the contract, such as the escrow amount, closing date, and any additional terms you want to be added to the offer. We will write the offer on a contract form and submit it to the seller’s agent.

What if I want to back out of a contract?

You always have the right to back out of the purchase, but you may lose your escrow deposit. If the contract is contingent on a property inspection, you usually have the right to cancel for any reason during the inspection period. Once the inspection period has passed, you cannot back out and keep your deposit unless the seller agrees, or an additional term has not been met.

What happens when my offer gets accepted?

Once both parties have agreed on all terms and signed the contract, your escrow deposit must be made and you should schedule the home inspection. Your lender will receive a copy of the contract and will begin processing your mortgage application.

How do I know if it’s time to buy instead of rent?

If you know where you want to live, have a steady and secure income, and are ready for the responsibilities of homeownership, then it’s a great time to invest in property.

How do I know if I qualify for a loan and how much I can afford?

Contact a mortgage lender to get pre-approval for a loan. The lender will ask you some basic questions about your income and debts and can tell you what amount you can be approved for, and how much your mortgage payments will be.

What do Lenders require?

Mortgage lenders use two calculations to help determine your eligibility for a mortgage – your Gross Debt Service (GDS) ratio and your Total Debt Service (TDS) ratio. Your GDS ratio is the percentage of your gross monthly income used for mortgage payments, taxes and heating costs and – if you are buying a condominium – half of the monthly maintenance fees. As a general rule of thumb, your GDS ratio should not be more than 32% of your gross monthly income. Your TDS ratio is the percentage of gross monthly income required to cover monthly housing costs, plus all your other debt payments, such as car loans or leases, credit card payments, lines of credit payments and any other debt. Generally, your TDS ratio should not be more than 40% of your gross monthly income.

What’s the difference between pre-approved and pre-qualified?

While often used interchangeably, these terms don’t mean the same thing. Pre-qualification is an estimate of what you may be approved for based only on the verbal information you provide. Pre-approval means the lender has verified your income and debt information

Have you been pre-approved?

Getting pre‐approved for a mortgage before looking at properties gives you a more realistic expectation of what you can afford. However, keep in mind that the pre‐approved amounts can overestimate what you can actually afford to pay. Pre‐approval does not guarantee you will be approved once you actually apply if market conditions, interest rates, or your personal circumstances change.

Where can you get pre-approved?

You can get mortgage pre‐approval from a traditional lender, such as a bank and credit union, or by working with a mortgage broker who acts as an intermediary between you and the lender. Mortgage brokers negotiate mortgage terms and rates on your behalf, and usually work with dozens of different lenders, including mortgage finance companies. Their fees are paid by the lender when your mortgage is signed.

Click here for our blog post
to learn more about advantages of working with a Mortgage Broker

How do I know which mortgage option is right for me?

Your mortgage lender is the best person to advise you on this question. Their products and qualifications change from time to time, so they would know best what products are available to meet your needs.

Do you know your Credit Rating?

Order a copy of your credit report to make sure it does not contain any errors because lenders will check it before approving you for a mortgage. A credit report is a summary of your financial history and shows whether or not you have had any problems in the past paying off debts.The Financial Consumer Agency of
Canada (FCAC), a federal government agency, has tips on how to order your credit report for free and how to improve your credit rating. Visit FCAC’s website at: www.itpaystoknow.gc.ca

What is a Fixed Rate mortgage?

Your interest rate is locked in for a specified period called a term. Your payments stay the same for the mortgage’s term so you will not pay more if interest rates increase over time.

What is a Variable Mortgage?

Rate of interest you pay may change if rates go up or down

What is a Conventional Mortgage?

Require a down payment of 20% or more of the property’s value. You are not required to get mortgage default insurance with a conventional mortgage.

What is a Closed Mortgage?

The mortgage cannot be paid off early without paying a prepayment charge.

What is an Open Mortgage?

A mortgage that can be paid off at any time during the term, without having to pay a charge. The interest rate for an open mortgage may be higher than for a closed mortgage with the same term.

What is a Portable Mortgage?

If you sell your existing home, you can transfer your mortgage to your new home while keeping your existing interest rate. You may be able to avoid prepayment penalties by porting your mortgage.

What are Prepayment Privileges?

You can make lump‐sum prepayments or increase your monthly payments without having to pay a charge. This can help you pay off your mortgage quicker and save on interest penalties.

How Often Can You Make Your Payments?

By switching from monthly payments to accelerated weekly or biweekly payments, you can pay off your mortgage faster.

What is Mortgage Default Insurance?

When you buy a home with less than a 20% down payment, the mortgage needs to be insured against default. This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments. It does not protect you.

Are you Planning to Purchase a Property With Less Than a 20% Downpayment?

f yes, you require mortgage default insurance which generally adds 0.6% to 3.85% to the cost of the mortgage depending on the total amount borrowed.
Mortgage default insurance enables you
to purchase a home with a minimum down payment of 5% (10% for multi‐unit dwellings) with interest rates comparable to those of a conventional mortgage. Major providers of mortgage default insurance include Canada Mortgage and Housing Corporation (CMHC), Genworth Canada, and Canada Guaranty Mortgage Insurance Company.

When is a good time to sell?

An easy answer is when it’s best for you! Obviously, if you are closing on a home purchase, moving for work, or want to get settled before the new school year, you have a timeline you need to work with. But, if you have the luxury of choosing when to sell, there are a few considerations. Spring is traditionally a time when there are more buyers looking, but you may also have more competition. Fall, and closer to the holidays, is a good time to get a higher price from buyers that need to move before the new year. Watching the market is always smart. A seller’s market, meaning there are more buyers than sellers, is always a good time to list.

What is my home worth?

Determining your home’s market value is one very important reason to use a real estate agent. We will do a comparative market analysis (CMA) to help you set the correct listing price. We look at recent sales of comparable homes, similar homes that are under contract, and homes that are listed in the same price range of your home. Then we compare features of the homes including the size, style, number of rooms, age of the home, amenities, condition, lot size and placement, and the location or neighborhood. (Note: the tax appraiser’s assessed value of your home has nothing to do with the market price.)

How do I determine the right listing price?

What your home is worth and what you should list it at are not the same. You always want to have room to negotiate with buyers, so setting a “firm” price to avoid the negotiation process is not usually a good strategy. Neither is setting a very high price to “see what we get.” Setting an unreasonably high price usually results in longer time on the market, which does not look good to buyers and will frustrate you.  Many sellers ask about the price that Zillow or other real estate websites give for their home. These are not reliable because these sites are only taking into consideration very general demographics.

How long will it take to sell my home?

The length of time on market will depend upon the market in your area at the time of listing and whether the home is priced realistically. We are always working to get you the highest price in the shortest time possible. On average, a home that is priced right goes under contract in two to three months. If you need to sell fast, that should be reflected in the list price.

How much will I pay in commissions?

The standard real estate commission is 5% of the sales price, split between the listing and selling sides. Commissions are not paid directly to the agents, but to our brokers. They collect fees for marketing your home on MLS and other websites, administrative costs, insurance fees, and required fees for storing your transaction records as required by law. Our broker then pays me for representing you in the transaction. As your agent, we will work very hard to represent you ethically and with your best interest always the priority.

What do I need to do to get my home ready to sell?

We recommend that you give the home a thorough cleaning– get rid of anything you aren’t taking with you, declutter surfaces, take care of repairs, make sure the major mechanical systems are in good operation, have the exterior pressure cleaned and the landscaping spruced up. You may also consider repainting if it is overdue or if the home is painted in dark or bold colors.

What do I need to disclose?

It’s smart to disclose any issues right up front. Your buyers will have the right to inspect the home, so it’s best they not be hit with bad news after going under contract. If you know of problems with the appliances, plumbing, electric, HVAC, roof, foundation, property lines, or deed, these need to be disclosed. If there are repairs that you can have done before listing, go ahead and take care of those. Anything that cannot be remedied before listing should be considered when setting your list price.

How do you negotiate multiple offers?

A multiple-offer scenario is a fun position to be in as a seller. We will help you through the negotiation process to select the right buyer– and that is not always the one with the highest offer. We need to consider how strong the offer is, whether they are offering cash or financing, how much they are financing and what type of loan they are using. How much they are offering to put in escrow and the terms of the inspection process are indications of their commitment to the deal. You may also draw on sentiment: are they buying your home as an investment or a place to raise their family?

First-time Home Buyer's Tax Credit

The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible. A $5,000 non‐refundable income tax credit on a qualifying home. The credit provides up to $750 in tax relief to assist first‐time buyers with purchase costs. For more information, check the Canada Revenue Agency’s (CRA) website

CMHC Green Home Program

The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible. When you use CMHC‐insured financing to buy or build an energy‐efficient home or make energy‐saving renovations, you may qualify for a premium refund of 10% on your mortgage default insurance and a premium refund for a longer amortization period (if applicable).Check out CMHC’s website for more information: https://www.cmhc-schl.gc.ca

Home Buyer's Plan

The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible.A one‐time withdrawal up to $25,000 from
a Registered Retirement Savings Plan (RRSP) by first‐time buyers to help purchase or build a home. Generally, you have to repay all withdrawals from your RRSP within 15 years. For more information, check the Canada Revenue Agency’s (CRA) website

How is the contract sent?

The contract will be sent via DocuSign. Clients have a maximum of 12 hours to sign the purchase agreement to begin the 10-day cool off period. If the client does not sign within 12 hours from when the contract is sent, it will automatically expire at that time.

How long do I have to decide after signing the contract?

We provide a 10-day cooling off period. Anytime within and up to the 10th day, if you wish to cancel your offer you can, with any monies received by the developer being refundable back to you.

How is the deposit paid?

You can deliver the deposit by bank draft to a local BMO branch and you may wire transfer the deposit funds. The wire instructions to do this will be provided when a purchase agreement is signed.
NOTE: If a deposit is NOT received within one business day of signing the purchase agreement, it will automatically expire at that time.

What is the deposit amount needed, when is it needed?

Typically our Calgary projects only require a 10% deposit within 90 days. Please refer to the Pricing & Payments document for the specific project you're interested in.

Do I have to provide a mortgage approval?

Yes, and can be provided from a mortgage broker or any major Canadian financial institution.

Do the bylaws allow for short term rentals?

Yes, currently the bylaw’s allow long-term and short-term rentals such as AirBnB.

Am I allowed to assign my purchase?

Yes, assignments are permitted. However, the purchaser is responsible for any legal cost associated with the assignment estimated to be $700 – $1,000.

Do I need a lawyer in Alberta to buy a property in Alberta?

Yes, to do land title registration, the lawyer who processes the closing documents needs to be in Alberta. You can sign your closing documents from the comfort of your own home. Since the start of Covid-19, lawyers in Alberta can sign closing documents via zoom, and then you can courier them back to your lawyer in Alberta.

How does closing work when I am not there?

On closing day, designate your selected property manager permission to attend the closing day walk through, identify any deficiencies and sign the warranty letter of possession on your behalf.

What are the closing costs in Alberta?

Total closing cost will be around $1,350 for a legal representative to convey your purchase in Alberta. They do not need to be physically located in Alberta, but must be licensed to practice in Alberta. We have partnered with Brar Tamber (www.brartamber.com) to provide you unmatched service should you want to use a local representative. You are still responsible to pay the disbursement fees, which are usually around $500–$1,000.

Are there any hidden fees on closing?

No. There are no hidden costs such as levies or transfer taxes. Your purchase price does not include GST, unless otherwise noted.

My mortgage broker is inquiring about schedules, where can I find them?

Refer to the highlighted website link noted in your purchase contract that includes all condo disclosure documents.

Who pays utilities & how is that set up?

The owner sets up & pays for the utilities for their unit. Most utility providers require lead times of 3-4 weeks to have the transition be smooth. The most popular services are Enmax, ATCO Gas, and Direct Energy.

What type of insurance do I need?

If you purchased a condo, or townhome, you require condo owner content insurance. If you purchased a single family home, street town or duplex, you require full property coverage insurance.

What is the estimated property tax for the unit?

Can Truman increase the price at closing?

There is no escalation clause, the price will not increase on closing.

Can I get an update on the construction progress of my unit?

You can stay up to date with the progress of the project or your unit, on our website or by clicking the link below: https://trumanhomes.com/construction-updates

When will I receive notice of the date and time of my possession?

We provide notice of completion 30-90 days prior to possession, via email.

What if I want to be there in person for my possession walk-through?

Please provide us a minimum of 30 days notice prior to possession.

How do I get my keys?

The property management company, Empire 81, will take both sets of keys - one for the tenant, one for themselves. Upon completion of the rental guarantee term, your new property manager, yourself or a representative on your behalf, will be responsible for picking up your keys from Empire 81 or our head office.

My broker is looking for confirmation that the unit is registered with Alberta New Home Warranty?

If they’re looking to confirm that we have registered your unit, they can confirm and look up the builder number viathe link here: https://residentialprotection.alberta.ca/public-registry/Property

When do we need to fill out and sign New Home Warranty Insurance?

As the purchaser, you do not need to enroll for Alberta New Home Warranty. Upon possession, you will receive the warranty certificate and builder number. Within 2 weeks from closing, Alberta New Home Warranty will send the owner a package via email or mail.

When & how do I start receiving my rental guarantee payments?

Empire 81, the property management company, will reach out to you 1-2 weeks after closing to obtain your banking details and answer any questions regarding your tenant’s lease.

Can you send me the statement of adjustment for this project?

Statement of adjustment is sent to your lawyer, and is provided up to 60 days prior to closing.

I’m closing soon, what should I do?

If you haven‘t already provided your Lawyer’s information, please email it to invest@trumanhomes.comPlease reach out to your mortgage broker and lawyer to confirm all information and paperwork is ready and up todate, to ensure there are no delays for closing.

Frequently Asked Questions

Please view some of the more common pre-construction questions our clients ask, if there is something you are unsure about, please reach out to our team!