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Closing costs going way up. Concern?

Dean2015 said:
Yup. Totally agreed.

I excepted to see more people complaining about the high cost but is very surprised to see only a few us complaining.
Click to expand...

I wish more people would complain. This needs some traction.

There are many winners and just one loser in the precon condo game.

Winners:
The city
The province
The builders
The lawyers
Utility companies

Loser:
There is only one loser and that's the purchaser.
 
TheKingEast said:
I wish more people would complain. This needs some traction.

There are many winners and just one loser in the precon condo game.

Winners:
The city
The province
The builders
The lawyers
Utility companies

Loser:
There is only one loser and that's the purchaser.
Click to expand...


I would say the real winner is the builder since they are transferring the costs that should/were built into the purchase price before.
it's not like their costs are anywhere near the sales prices.


and yes, the only loser is the purchaser !

oh FYI ... the purchaser loses again to the city because of the way the builder sells/markets the units.
development charges are based on the type of unit ie. bachelor + 1 bedroom, 2 bedroom and larger

as many developers sell what is really 1 bedroom + den as 2 bedroom units, the purchaser has to pay almost double as the development charges:
$8,356 vs $15,695

http://www1.toronto.ca/City Of Toro...pdf/D/DevChargesPhamplet_final_accessible.pdf
 
Last edited:
cdr108 said:
I would say the real winner is the builder since they are transferring the costs that should/were built into the purchase price before.
it's not like their costs are anywhere near the sales prices.


and yes, the only loser is the purchaser !

oh FYI ... the purchaser loses again to the city because of the way the builder sells/markets the units.
development charges are based on the type of unit ie. bachelor + 1 bedroom, 2 bedroom and larger

as many developers sell what is really 1 bedroom + den as 2 bedroom units, the purchaser has to pay almost double as the development charges:
$8,356 vs $15,695

http://www1.toronto.ca/City Of Toro...pdf/D/DevChargesPhamplet_final_accessible.pdf
Click to expand...

A bloody shame.
 
These are small fees compared to the price of the condo. If the unit is not properly constructed and delivered, the costs can be much higher for owners in the long run.
 
Shiny said:
These are small fees compared to the price of the condo. If the unit is not properly constructed and delivered, the costs can be much higher for owners in the long run.
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In many cases the unit isn't even constructed properly. The quality of construction is subpar.
 
I just signed on a unit from a builder today.
The adjustments/closing costs should be within the Purchase Agreement and not the condo documents (disclosure statement, etc.) correct?

I swear I've gone through the Closing Schedule at least a few times and I think only the following closing costs are mentioned:
-realty/hydro charges apportioned to purcahser on closing date
-on closing, pay/reimburse realty taxes required to be paid during year of closing
-6 post-dated cheques payable to Condominium for common expenses and another certified cheque for common expense contribution to the Condominum as working capital fund
-from and after closing, pay all telephone/hydro/cable/internet/other charges billed or intended to be billed directly to the purchaser
-credit Vendor HST rebate if failed to qualify

Should I be worried or relieved that there is no mention of other adjustment/closing costs (ie. development charges, etc.)?
 
uto123 said:
I just signed on a unit from a builder today.
The adjustments/closing costs should be within the Purchase Agreement and not the condo documents (disclosure statement, etc.) correct?

I swear I've gone through the Closing Schedule at least a few times and I think only the following closing costs are mentioned:
-realty/hydro charges apportioned to purcahser on closing date
-on closing, pay/reimburse realty taxes required to be paid during year of closing
-6 post-dated cheques payable to Condominium for common expenses and another certified cheque for common expense contribution to the Condominum as working capital fund
-from and after closing, pay all telephone/hydro/cable/internet/other charges billed or intended to be billed directly to the purchaser
-credit Vendor HST rebate if failed to qualify

Should I be worried or relieved that there is no mention of other adjustment/closing costs (ie. development charges, etc.)?
Click to expand...

Are you purchasing a unit where the building has already been registered? If that's the case, then I don't think you'll be having to pay some of the different levies (e.g. education, park, etc.) and utility meter installation that purchasers who bought pre-construction have to pay for.
 
aiekon said:
Are you purchasing a unit where the building has already been registered? If that's the case, then I don't think you'll be having to pay some of the different levies (e.g. education, park, etc.) and utility meter installation that purchasers who bought pre-construction have to pay for.
Click to expand...

Yes, the building is registered already and it's one of the few remaining units that the builder has available.

Is it normal or common practice for builder's to remove those adjustments from the contact after the building is registered?

I almost bought a unit from a different builder (also registered building) but they still had a lot of adjustments listed in the contract. Also, many of the adjustments were not capped and had unlimited costs.
 
I'm not sure and I would hate to provide you with any feedback that was wrong! Just from personal experience, a friend of mine who bought a condo resale (but from the developer) had the levies and meter installation removed from closing costs. It's possible that this developer did the same thing, however, your lawyer should be able to tell you what costs you'll be expected to pay on closing? Are you having a lawyer review the agreement within the 10-day cooling off period?
 
aiekon said:
I'm not sure and I would hate to provide you with any feedback that was wrong! Just from personal experience, a friend of mine who bought a condo resale (but from the developer) had the levies and meter installation removed from closing costs. It's possible that this developer did the same thing, however, your lawyer should be able to tell you what costs you'll be expected to pay on closing? Are you having a lawyer review the agreement within the 10-day cooling off period?
Click to expand...

How do you buy a resale condo from the developer? This is the first time I've heard of this.

I just dropped off the agreement with my lawyer today so hopefully I'll hear back soon after the review.
 
I am by no means an expert but in my experience Your lawyer if he is reviewing it may be able to get a cap on the closing costs.
You should see. Some builders offer in the sale to cap the closing costs..For e.g. $5K for a 1 bedroom, $8K for a 2 bedroom.
You will probably have to pay for the meter...usually around $500 and a few other things but the development levies and fees for neighbourhood improvements etc. can be capped...at least some developers/developments are willing to do this.

If you are in your recision period, these can be reviewed and negotiated. If you are beyond the 10 days, it is too late.

I would go back through your documents and see if there is anything in the sale agreement that says the closing costs are capped and at what level.
I would suggest you get it in writing.
 
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