- Category: Finance and Money
- Written by News Canada
(NC) Buying a new home is a big commitment and it comes with a lot of paperwork. But understanding these documents can help you protect this major investment.
By far the most important document is your purchase agreement, which is a legal and binding contract between you and the vendor. However long and intimidating this document may be, there are three key pieces that you should look for.
- Tarion addendum
One of the biggest concerns for new home buyers is when their home will be ready, and what happens if construction is delayed. This is where this addendum comes in. It outlines information related to your closing date and what, if any, delays your builder is allowed. It also includes the conditions under which your purchase agreement may be terminated and how your deposit will be protected.
- Warranty information sheet
Beginning February 1, 2021, vendors of new homes will be required to attach a warranty information sheet to every new home purchase agreement. This will ensure that buyers are aware of the important coverage they are entitled to at the time of sale.
Tailored to the type of home being sold, the sheet provides a basic overview of warranty coverage (including deposit protection and compensation for closing delays), highlights the importance of the pre-delivery inspection, and directs buyers to additional resources for learning more.
- Condominium information sheet
If you’re buying a condo unit, your purchase agreement will include an information sheet that explains the risks and considerations that come with this type of new home purchase. Among the things covered are:
- the risk that pre-construction condominium projects may never be completed;
- early termination conditions that would allow a developer to cancel a project;
- information about the status of the development (e.g., formal zoning approval, relevant approval authority and date of commencement of construction);
- information about any restrictions on the developer’s land title that may prevent the project from going forward;
- a purchaser’s right to cancel a sales agreement within 10 days;
- the expected date when a purchaser can take occupancy.
There is a lot to take in, for sure. But with the help of a real estate lawyer who can guide you through the particulars, you’ll be able to buy your new home with a lot more confidence and peace of mind.
Find more new home buying tips at tarion.com.
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