Buying a Pre-Construction Condo
Builder Agreements and The Rescission Period
Toronto Real Estate Lawyers
So you’ve decided to jump in to the real estate market and buy a pre-construction condo. You put 5% down and your new home will be ready in a year or two.
You’re then given a copy of your Builder Agreement, and have 10 days to have a lawyer review it, firm up the purchase, or negotiate amendments. This is called a rescission period. A lawyer can charge anywhere from $250-$500 to review your pre-construction Builder Agreement before the end of the rescission period.
Often, buyers will review it themselves and firm up the purchase as is in order to save on legal costs. This is a mistake! When you’re eager to purchase a property you may not notice the fine print in a Builder Agreement which is often 40 pages in length or more. This can lead to an increase in hidden or surprise charges.
What buyers don’t realize is that the pre-construction Builder Agreements often shift costs unnecessarily to the buyer. A real estate lawyer can easily identify these costs and often get them waived by writing to the Builder’s lawyer, along with getting the rescission period extended.
Requests to remove these costs are often, but not always approved. This depends entirely on the Builder, the number of potential purchases, and market conditions.
Call Kesarwani Law Office today to review your pre-construction condo Builder Agreement. We conduct diligent reviews with your best interests in mind, to ensure you understand what to expect with your purchase and from your builder.
We are real estate lawyers in Toronto located at Bloor and Kipling. We look forward to hearing from you. We service across the GTA, including Mississauga, Brampton, Vaughan, and Oakville.
Kesarwani Law Office
3817 Bloor Street West
Toronto, ON M9B 1K7