How to Buy Pre-Construction Condos
By All Access Homes
October 1, 2023
Investing in a pre-construction condo is a great way to enter competitive markets while being part of the construction journey, from its inception to completion. But buying a pre-construction condo is a unique process that even experienced homebuyers may need to familiarize themselves with.
If you're curious about pre-construction condos but need help determining where to begin, you've come to the right place. We'll tell you everything you need to know about buying a pre-construction condo, from finding a platinum-level broker to closing on your new property.
How Does Buying a Pre-Construction Condo Work?
You may have bought and sold numerous properties, but buying a pre-construction condo is a unique process. Here's how it works:
Find a Platinum-Level Broker/Firm: Start by searching broker and condo developer websites. More specifically, look for platinum-level brokers and firms. Why? Because they’ve earned early access to projects, which means you’d get to complete a worksheet, choosing your preferred units in the building, before anyone else.
Sign Purchase Agreement: You found your dream condo. Now it’s time to sign the developer’s purchase agreement, which reserves your unit and shows your intent to purchase. It’s worth noting that you do not have immediate ownership at this stage.
Receive Unit Assignment: Next, you will receive a unit assignment, which reserves your unit until it is built.
Enter Occupancy Period: Once your unit is finished, you can take occupancy while the remaining construction work is completed. At this stage, you will pay an occupancy fee to the developer—not a mortgage.
Receive Full Ownership: When the occupancy period ends, you will close on your property by paying the remaining balance of the purchase price, closing costs, and any additional fees. After the title is fully registered, you are officially the owner!
How Do I Buy a Pre-Construction Condo?
To buy a pre-construction condo, take the following steps:
Find the Right Location: Explore real estate markets that appeal to you. Search cities or regions experiencing growth, development, and access to amenities that suit your lifestyle preferences.
Find the Right Broker: Not all brokers are created equal. Look for experienced, well-connected professionals who have platinum access to upcoming projects.
Put Your Research to Good Use: You know the general area you want to live in. Now tell your broker so s/he can focus on projects in that region.
Sign Purchase Agreement: Next, you’ll sign a purchase agreement, most likely make a $5,000 down payment, and wait for your condo to be built.
Secure Financing: 10 days later, you’ll make an initial deposit, which is usually 5 percent of the total cost of the condo. You’ll also need to get pre-approved for a mortgage.
Make Payments: You'll continue making deposits once you enter the occupancy period. However, you still do not have ownership.
Take Ownership: Once the entire construction project is complete, you will pay final closing costs, receive full ownership, and begin making mortgage payments.
Why Settle for Ordinary When You Can Experience Extraordinary Living?
All Access Homes is your trusted source for pre-construction projects in the Greater Toronto Area, offering a wide range of new condos, townhomes, freehold houses, and commercial projects. As platinum-level agents, we have strong relationships with builders, mortgage specialists, lawyers, and property managers. We secure clients unparalleled access to projects before anyone else, with the highest number of purchase incentives. If you're looking for the most sought-after pre-construction condos not available anywhere else, contact us now!