Whether you are looking into a condo or a house, it is possible to purchase them off-plan before their construction.
If you want to sign a purchase agreement for an off-plan property, be sure to follow these steps:
Determine Your Budget
As with a house that is already built, it is important to meet with one of our banking partners to find out the amount they can lend you (mortgage) depending on your financial situation. This pre-approval will prevent you from wasting your time when searching for properties.
When buying a new home off-plan, don’t forget to calculate taxes. Some builders display prices with these included. Also, know that even if a sale price is determined, you can negotiate with the contractor.
Also, keep in mind that during the meeting with the contractor (or the real estate broker who represents them), you may need to choose the materials (flooring, countertop, cabinet siding) and this may increase the purchase price.
Target Your Needs
You will also benefit from determining your must-haves and non-essentials with respect to the property. Must-haves are elements that you can not do without while the rest becomes a plus that will not prevent you from acquiring the property. It would be worth considering the following: number of rooms, type of neighborhood, nearby services, fireplace, air conditioner, amount of storage, bedrooms, if the property has a garage, etc.
Make Sure the Contactor is Reliable
Is the construction company that deals with the development of the neighborhood or the condo building in good standing? Has it received any complaints from the Office de la Protection du consommateur? Does it hold an RBQ license?
It must also be accredited in order to offer you a Residential Construction Guarantee: you will thus be entitled to legal protections on the guarantee plan for new residential buildings.
Also, be sure to check the contractor’s previous projects to validate their professionalism and experience.
Ask The Manufacturer for Clarification
Sometimes, real estate purchases can happen quickly: you may be told that the units are selling like hot cakes or that there is almost no free land left in the neighborhood. Don’t fall into the trap and stick to your pace.
Before acquiring property, it is best to know the product well. For example, ask for details on paper of the materials used, the quality of the soundproofing, the planned electrical system, etc. New homes must meet building codes and new energy efficiency standards.
Sign The Contract with Full Knowledge of The Facts
Signing a purchase contract is not trivial: you are required to buy, even if you have not yet signed with the notary. Often, you will also have to pay a deposit, even if the possession of the property is not expected for several months.
However, it is possible to terminate the contract up to 10 days after signing. The contactor can then keep up to 0.5% of the sale price of your deposit when signing the promise to purchase. Make sure all this is clearly stated in the contract before signing.
Carry Out an Inspection
Don’t forget to have your new property inspected once it is built! There will also be a pre-acceptance inspection with the contractor (mandatory under regulation), but it is strongly recommended that you be accompanied by a building professional.
For your future real estate projects, it is important that you call on the help of an expert. Contact a Via Capitale real estate broker now.