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President's Toronto SUN Column

TREB President's Column as it appears every Friday in the Toronto Sun's Resale Homes and Condos section.


Using A Realtor To Buy A New Home

October 21, 2011 -- I recently read an article, in a Toronto news paper, that got me thinking about the experiences of home buyers purchasing newly built condominiums.  The article detailed home buyers who had bought a newly constructed condominium, from floor plans, but, unfortunately, once the unit was built, they were disappointed when they realized that one window looked at a brick wall, the floor was laminate and the balcony was “more of a ledge.” This article is a good reminder that there is a lot to consider when deciding to buy a newly built condominium.

Condominiums are regulated by the provincial Condominium Act. In recent months, there has been some talk about the need to reform this law, in part to provide better consumer protection. There is no doubt that the Condominium Act does need reworking but “caveat emptor” or buyer beware can go a long way to help home buyers considering any property, including newly built condominiums.

When buying newly built housing, there are many things to consider.  Firstly, when you walk into a new housing sales office, please realize that, often, everyone working there is working on behalf of the seller/builder.  If that is the case, you may have discussions with them, but their fiduciary duty is to the builder, not you as the Buyer. With this in mind, you do have the option of working with a REALTOR® and entering into a Buyer Representation Agreement, to authorize them to work on your behalf in any Purchase.

At any time that you work with a licensed REALTOR® they must disclose, to all parties, on whose behalf they are working, in writing. For years, I have been hoping that the Government of Ontario would make disclosure part of all sales that happen in the Province. Currently only REALTORS®, who are licensed under the Real Estate and Business Brokers Act 2002, must do so. Consumers would be better protected if other parties that are involved in real estate transactions, including lawyers, private sellers and new construction on-site salespeople, were also required to do so.  It’s only fair: anyone acting on behalf of someone else should have to disclose their relationship with the Buyer or Seller.

Secondly, a very important thing to know is that all Buyers of newly built condominiums are entitled by law to a 10 day cooling-off period, during which time they can cancel their agreement.  This is a good time to peruse all documentation and take it to a lawyer for review. When dealing with condominiums, it could help to use a lawyer who specializes in Condominium Law. The lawyer may have good advice on stipulations that you can add into the contract to better protect yourself.

Thirdly, understand what you are buying:

  • Make sure that a condominium suits your lifestyle. Do you have a good sense of the reality of a 665 square foot property with two bedrooms and two bathrooms? If you have house-sized furniture are you ready to sell it all to make this type of new space liveable.
  • Be diligent in getting the details. If the plans show nine foot ceilings, is that in all of the rooms? Where will the heating, cooling, and water be located for the apartment below and above? Ask for the full building plans so you can see where the bulkheads are planned.
  • Understand the status of the neighbourhood.  Is it a stable neighbourhood with little re-development or is their significant development on-going, or coming, that could change the nature of the area, and affect things like the view from your unit. The municipality’s Official Plan and Planning Department staff can help you look into the future to get an idea of what may be coming.
  • Be realistic in your expectations for the property’s value; use common sense. Getting caught up in hype and speculating that your unit will increase dramatically in value from the time you purchase until construction is complete could leave you disappointed.

Finally, be sure to consider all of your options.  For many home buyers, newly built housing is the right choice; however, if you are the type of person who likes to “kick the tires” before buying, purchasing a re-sale property might be a better option for you.

Newly constructed housing is an important part of the real estate market.  It fills an important niche and is the right choice for many people. However, as with any major purchase, it is important that you take steps to look out for your best interests.   Go the extra step to make sure that you understand what you are buying, and consider working with a REALTOR® who can provide assistance and advice during the purchase of your  new home. 

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Archive
Note: All links are PDF files

 2011
October 14 Celebrating Many Years Of Service
October 7 Renovation Rebate Would Benefit Homeowners
September 30 Land Transfer Taxes Unfair to Home Buyers
September 23 Energy Rebates Should Be A Priority
September 16 Tell City Hall to Target Waste, Not Home Buyers
September 2 Realtors ride for a great cause
August 26 Strong economy sees numbers boosted
August 19 New Web Site Easy to Use
August 15 Learn to keep termites at bay
August 9

Public and Businesses See Eye-to-Eye on Municipal Finance Issues

July 22 Know when it's time to renovate
July 8 Treat first-time buyers fairly
June 17 Time To Repeal The Land Transfer Tax
June 10 Take a tour of the virtual office
June 3 Parking red tape should be streamlined
May 27 Helpful Advice Is Keystrokes Away
May 20 Taking a walk through REALTOR® QUEST
May 13 The social side of real estate
May 6 Staying on top of municipal issues
Apr. 29 Expect demand to remain strong
Apr. 22 Know what to look for in a condo
Apr. 15 Choosing between new and resale
Apr. 8 Learn to use the tools of the trade
Apr. 1 Expect demand to remain healthy
Mar. 25 City needs to cut parking red tape
Mar. 11 Select the right neighbourhood
Mar. 4 Consider investing in a fixer-upper
Feb. 25 Expect homes to remain affordable
Feb. 18 REALTORS® help clarify parking rules
Feb. 11 Learn the benefits of going online
Feb. 4 Increase the value of your resale
Jan. 28 Know the value of a REALTOR®
Jan. 21 Move is on to repeal an unfair tax
Jan. 14 Choose a home that fits your style
 2010
Dec. 17 Working Hard to Make a Difference
Nov. 19 Sorting out HST misconceptions
Nov. 12 Give more thought to going green
Nov. 5 All signs point to a healthy market
Oct. 29 Green your home and save money
Oct. 15 Keeping your best interest in mind
Oct. 8 All signs point to a healthy market
Oct. 1 Condos have become a way of life
Sept. 24 Setting the HST record straight
Sept. 17 Coming to 'Terms' with Real Estate
Sept. 10 Growing Up and going green
Sept. 3 Keeping your best interest in mind
July 16 Charity begins and ends at Home
July 9 Saving the HST with Resale Housing
July 2 Recognizing Our Volunteer Efforts
June 25 Getting to know all your options
June 18 Embracing Diversity in the GTA
May 28 REALTORS® need to know quite a lot
May 14 April transactions nearly met record
May 7 Shopping for the best deal in Town
Apr. 30 The Hidden costs of moving
Apr. 23 Knowing all the local options
Apr. 16 Many ways to cut energy costs
Apr. 2 It pays to renovate before you sell
Mar. 26 Working in your best interests
Mar. 12 Growing Tax burden is taking its toll
Mar. 5 A Professional Touch
Feb. 26 Registry links buyers to homes
Feb. 19 Mitigating the HST tax threat
Feb. 12 Expect strong start to 2010 to continue
Feb. 5 Helping those in desperate need in Haiti
Jan. 29 Having a green home provides savings and peace-of-mind
Jan. 22 REALTORS® assist with Rentals Too
Jan. 15 REALTORS® Give Back
Jan. 8 Why our REALTORS® are the envy of the world
 2009
Dec. 11 Making the jump to home ownership
Dec. 4 Your kind of town, Toronto is
Nov. 27 Emerging Neighbourhoods
Nov. 20 Mid-Month market report: The economic recovery continues
Nov. 13 There's More to us than MLS
Nov. 06 Fix-up Frenzy
Oct. 30 A Taxing Issue: Let's call on future mayor to roll back LTT
Oct. 23 Where to buy
Oct. 16 Value Added
Oct. 10 Market report
Sept. 25 NO sense of harmony
Sept. 18 Vertical City - The GTA is growing up and going green
Sept. 11 Go Site-seeing
Sept. 04 A changing shade of grey
August 28 Gateway to the World
August 21 Vertical City – Toronto is Growing Up
August 14 A new way to hunt for homes
August 7 Home Away from Home
July 31 The Canadian Dream
July 24 Move or Improve
July 17 Weathering the Storm
July 10 Mid-year market report
June 26 Making the Right Connections
June 19 Condo City
June 12 More co-op on grow ops
June 5 Investing in Real Estate
May 29 The News is Good
May 22 Ownership Housing Plays Important Role
May 15 REALTORS® Invest Time to Improve
May 8 REALTORS® take message to Ottawa
May 1 REALTOR® Education
Apr. 24 Community Spirit Alive
Apr. 17 Tech tools of the trade
Apr. 10 Public Wants Toronto Land Transfer Tax Repealed
Apr. 03 Invest In Future
Mar. 27 Agents of Change
Mar. 20 Harmonized Sales Tax Would Hurt Home Buyers
Mar. 13 Actions Speak Louder than Words on Affordable Housing
Mar. 06 Market review: 2009 so far
Feb. 20 Scholarships offered by real estate board
Feb. 13 Make Home Owners Priority of City Budget
Feb. 06 Federal Budget Helps Home Buyers and Owners
Jan. 30 January's Resale Housing Market Report
Jan. 23 TREB to Feds: More help to Homebuyers
Jan. 16 Lifestyles in the 416 and 905
 2008
Dec. 19 Be prepared for closing costs
Dec. 12 Toronto Land Transfer Tax Costs City's Economy $170 million
Dec. 5 Understand your privacy and rights
Nov. 28 Seasons of Real Estate
Nov. 21 Setting the Stage for a Sale
Nov. 14 The Ins and Outs of Inspections
Nov. 7 Outlook still good for GTA
Oct. 31 Taking Advantage of Taxes
Oct. 24 The Ins and Outs of Insurance
Oct. 17 Fighting Back Against Fraud
Oct. 10 Local Market Holds Steady
Oct. 3 Show Good Form During a Deal
Sept. 26 Using Equity to Your Advantage
Sept. 19 Choices Abound but Choose Carefully
Sept. 12 GTA Housing Market Stable
Sept. 5 Points to Ponder This Fall
Aug. 29 Don't Take This For Granted
Aug. 22 A Helping Hand
Aug. 15 A Market Report for July
Aug. 8 A Primer on Attracting Buyers
Aug. 1 Returns on RENOs
July 25 New Federal Mortgage Rules
July 18 Revitalizing the Big Smoke
July 11 Condos Changing the GTA
July 4 Feeding the City's Future
June 27 Recognizing Volunteers
June 20 Buyers, Be Aware of the New Rules
June 13 The Market Remains Healthy
June 6 Reasons to Pick a REALTOR®
May 30 The Power of MLS
May 23 Greening Up Resale Homes
May 16 A Quest for Knowledge
May 9 Lobbying Goes a Long Way
May 2 Toronto Compared
Apr. 25 Beware of Hidden Development Charges
Apr. 18 From the President
Apr. 11 Guarding Against Grow-Ops
Apr. 4

The Importance of the Budget

Mar. 28 Another Way to Invest in Real Estate
Mar. 21 Federal Budget Misses Opp
Mar. 14 Prepare Now for a Spring Move
Mar. 7 Remember to Budget for City's Budget
Feb. 29 From the President