Capping Adjustment Costs

[uto123]

If I'm buying from a builder and I want a global cap on adjustments, is it possible to request this during the initial negotiation stage and have the builder include amendments to the contract or does our lawyer have to request capped adjustment costs to the builders lawyer?

The sales rep has only said that all costs from the builder side is waived and that there are no levies.

 

[Wooba]

First of all, don't believe anything the sales rep tells you. All that matters is what the contract says.

If you're buying a condo (perhaps a house, not sure of the rules) you get 10 days cooling off period. During this time I've always taken my contract to my lawyer to look over. Here he makes recommendations and we draft an amendment to present to the builder. It always includes a cap on closing costs and every builder I've dealt with has accepted one.
I don't see any harm in negotiating up front for it, but if you don't, it's not a big concern because you can deal with it during the cooling off period.

 

[uto123]

First of all, don't believe anything the sales rep tells you. All that matters is what the contract says.

If you're buying a condo (perhaps a house, not sure of the rules) you get 10 days cooling off period. During this time I've always taken my contract to my lawyer to look over. Here he makes recommendations and we draft an amendment to present to the builder. It always includes a cap on closing costs and every builder I've dealt with has accepted one.
I don't see any harm in negotiating up front for it, but if you don't, it's not a big concern because you can deal with it during the cooling off period.

Thanks.

It's definitely something I'd like to have taken care of before I sign the contract but I guess I can have my lawyer draft the amendment.
I just hope it will be possible to have a global cap because I don't want to have unforeseen costs when closing. (read some horror stories)

In regards to purchasing a house from a builder, I do not believe it has the 10 day cooling off period you get with condos.

 

[Rod]

In regards to purchasing a house from a builder, I do not believe it has the 10 day cooling off period you get with condos.

Wrong. Same 10-Day Cooling period applies to house purchases through a builder.

 

[vwltong]

Hi, to the OP, did the builder agree to the closing cap that your lawyer has drafted?
I am entering a pre-construction contract for a condo and the builder said they cannot amend to the contract for that for 1 owner. Is that true? or is that a red flag?

 

[ladhaan]

I've bought 3 pre construction condos and each one I had my lawyer draft amendments to include caps. I've submitted them within my 10 day period and all 3 have accepted them.

If your builder is saying they won't look into this, RUN!!!!!