Making sense of your New Sales Contract

In today's real estate market, there are options relating to purchasing a properties.  You can buy resale, (detached, semi-detached, townhouse, condo apartment, and condo townhouse). Or you can buy brand new from a builder. Within you community, check out your local newspaper to view where their new build sites are located.

If you do decide on buying new, there are a few things regarding the New Sales contract in which you should understand as a buyer.

PRICE	In regards to buying a home there are 2 parts to know: A)The actual price of the home B)Other costs that may arise during the build Furthermore, know if any item in the home is going to be a rental. For example, hot water tank, furnace, and or heat pump. If you are also interested in upgrading your basic features. Make sure you know the cost of each item and that it’s listed with the offer.
PRICE SCHEDULE	Within the contract there needs to be a payment schedule with dates an amounts. Make sure to ask your specific builder.
OTHER COSTS	Builders may charge you for installation and hook-up fees for the utilities, connection of appliances, tree planting, driveway (2nd coat), and maybe a fee if the builder hits bedrock. Don’t forget about your CLOSING COST. This amount of funds should be kept aside. It can cover lawyer’s fees, land transfer tax, Miscellaneous cost, and balance of Mortgage.
FINANCING	As the buyer you have options regarding your mortgage: A)    Builders Mortgage: The buyer would get pre-qualified from the builders financial institution B)     New Mortgage: The buyer arranging their own mortgage through a Mortgage Broker or a Lending institution Check with your financial institution regarding your specific mortgage commitment.

SITE VISITS	Homeowners may view the property with a representative from the Builder. Ask your builder on how they schedule site visits.
WARRANTY	Ask your builder about the warranties of the manufacturers materials. In addition, find out about the builders after-sales service policy.
PRE-DELIVERY INSPECTION	Pre-Delivery Inspection (PDI) has 2 aspects:       A) To inspect the home for completion       B) To show the buyer the home systems and how they work Any deficiency’s or defects should be written down and documented

Compliments of CMHC, About Your House: Understanding Your New Home Sales Contract.

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MyDaddyHomes