You’ve found the home you’ve been looking for and you’re ready to make the deal. Before you sign an Agreement of Purchase and Sale, consider these tips to help you understand your rights as a new home buyer. If you're having a Custom Home built with a contract, click here.
- 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 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.
- An 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 be required to provide a deposit for your home. As of January 1, 2018, deposits on freehold homes are protected for up to 10% of the purchase price to a maximum of $100,000 and a minimum of $60,000. Condominium deposits are covered for up to $20,000 by Tarion, and 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 (PDI) and when it will take place. Prepare for the inspection by reading our PDI Checklist or using our brochure Getting Ready for the Pre-Delivery Inspection.
- 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.