First Time Buyer (Condo) Questions

[DTK]

Hello Everyone,

I'm looking to purchase a preconstruction condo really soon and would like to consolidate information about the process.

I hope that this thread can be used for future first time buyers and perhaps even be stickied.

There are a lot of experts and great advices I've read, but are mainly scattered. So here goes:

1. Outline the general steps from the time of offer till final closing?
-put offer, 10 day cooling period, pre-approved mortgage, lawyer, payments, phantom rent, etc...

2. What is on the purchase agreement and what are some things to look out for?

3. Is the deposit 100% refundable if you back out during the 10 day cool off period?

4. Are there any disadvantages (ie. record or credit check, etc) if you back out (or maybe more than once)?

I think that's a good start.

Let's get the tips and advices going!

Thanks!

 

[DTK]

Saved for future post purposes...

 

[andrejeffry]

Hello Everyone,

I'm looking to purchase a preconstruction condo really soon and would like to consolidate information about the process.

I hope that this thread can be used for future first time buyers and perhaps even be stickied.

There are a lot of experts and great advices I've read, but are mainly scattered. So here goes:

1. Outline the general steps from the time of offer till final closing?
-put offer, 10 day cooling period, pre-approved mortgage, lawyer, payments, phantom rent, etc...

2. What is on the purchase agreement and what are some things to look out for?

3. Is the deposit 100% refundable if you back out during the 10 day cool off period?

4. Are there any disadvantages (ie. record or credit check, etc) if you back out (or maybe more than once)?

I think that's a good start.

Let's get the tips and advices going!

Thanks!

1. Steps:
- Get a pre-approved mortgage
- Find a reliable lawyer
- Start shopping for a condo
- Negotiate as much as possible, changing non-structural floor plans, etc, etc
- Put an offer
- Bring docs/agreement to your lawyer to be reviewed. Incorporate what you have negotiated into the paper, i.e if you want to change the floor-plan make sure it's documented and signed, or if you want to change the maximum delay period
- Before the 10 days passed, ask yourself firmly if you really want this unit. Consider 10 days is your point of no return
- Write pre-dated checks

2. Ask your lawyer, that's why it's important to find a lawyer that's really looking out for you. some lawyers will just say things are ok, etc, because they want you to buy the unit, so he'll get your paperwork

3. Yup

4. Nope

 

[luxome]

Does anyone know if the 10-day "Cooling Period" applies to in-house or other insider deals as well?

 

[cmystikal]

The 10-day cooling off period should apply to all pre-con condo deals. Be sure to check the details of your purchase of sale agreement to make sure the clause is there.