TARION - Making the Deal

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Making the Deal

Congratulations!

You�ve found the home you�ve been looking for and you�re ready to make the deal.

If you are like most consumers, buying a new home is the biggest purchase you will ever make. Before you sign the Agreement of Purchase and Sale, consider these tips to help you understand what your Agreement will include, and your rights as a new home buyer.

Tips for Making the Deal

Review the Agreement of Purchase and Sale with a real estate or condominium lawyer before signing 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 what items are part of your unit, and what items are considered common elements. Make sure anything that is agreed to verbally by your sales representative is reflected in the Agreement in writing. This also applies to things in the marketing materials that you would like to have in your home.
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 negotiate a convenient and realistic closing or occupancy date, and document all details regarding deposits and delayed closings or occupancies.
For freehold homes, an Addendum is also included in the Agreement of Purchase and Sale. 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 Agreement of Purchase and Sale, you will be required to provide a deposit for your home or condominium unit. Deposits on freehold homes are protected by Tarion up to $40,000. Condominium purchasers are protected for up to $20,000 for the loss of a deposit, and are protected for deposits over $20,000 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 so that construction is not delayed.
If you are purchasing a condominium, read the disclosure statement you receive carefully. It contains important information about your condominium. For example, you have a 10-day "cooling off" period once you receive the disclosure statement. You can cancel the deal, with written notice to your builder, within this 10-day period.
Ask your builder who to contact about scheduling your pre-delivery inspection (PDI) and when it will take place. Prepare for the inspection by printing the PDI Checklist on this website, or call Tarion at 1-877-9TARION (1-877-982-7466) to order a free copy.
Ask about the builder�s after sales service policy and who to contact should an issue arise. Ask who to contact in emergencies, too.
Understand the warranty that comes with your new home and what to do if you think you have a claim. Click here to find out what�s covered under warranty or check out the Construction Performance Guidelines on this Web site).