HomePre Construction Condo

Purchasing a home is a significant milestone in a person’s life. While it can be a thrilling adventure, it can also be exhausting and overwhelming. When it comes to buying a condominium, you have the choice of investing in a pre-construction condo or purchasing a resale condominium unit. A pre-construction contract is fundamentally different from an Agreement of Purchase and Sell for a resale home. If you need more details on buying a resale condominium, please visit our “Buying Property” page. However, if you intend to purchase a pre-construction condo from a builder, there are several issues, different from a resale purchase that must be carefully considered to ensure the desired outcome.

When purchasing a pre-construction condo, the buyer may have to wait several years before taking possession of the unit. During this time, numerous life-changing events may occur, altering the buyer’s ability or willingness to complete the transaction. If the buyer wishes not to continue with the deal before the project is completed, they can sell their interest in the property to a new buyer through an assignment agreement. An assignment is a sale transaction in which the original buyer (assignor) sells their interest in the Builder Agreement to another buyer (assignee) before taking possession of the unit. Following the assignment transaction, the assignee will assume and take over all of the assignor’s rights and responsibilities. As a result, the assignor is no longer required to close the transaction with the Builder, while the assignee is expected to complete the purchase transaction and take possession of the property.
The approval of the transaction by the builder is one of the primary concerns in an assignment agreement. Some builders may have a provision in their agreement that forbids the assignment sale, while others may restrict the right to assign by imposing an assignment fee clause in the Builder Agreement. As a result, if you are purchasing a new unit from a builder and plan to assign it before closing, it is strongly advised that you retain an experienced lawyer to evaluate the agreement before the cooling-off period expires. With the guidance of a legal advisor, you will be able to discuss the right of assignment with the builder and either remove the prohibition term from the agreement or reduce the assignment fee. Ghasemi Law will be there for you every step of the way, dealing with any issues that may arise and answering questions you may have. The law firm will make every effort to anticipate and address any problems that may threaten your real estate investment.

When you purchase a new condo from a builder, there is a period of time between when you move in and when you officially become the owner. The number of days between the occupancy date and the final condo ownership transfer is known as the interim occupancy period. You are not considered the owner during the occupancy period while the building is in the process of being registered with the local authority. Given that you are not the owner before registration, you must pay the builder the occupancy fee for staying at the unit prior to the ownership.

There are numerous procedures involved in pre-construction transactions, some of which you may not have considered. Ghasemi Law will assist you from the initial signing of the agreement with the builder to the final closing of the deal. You can be certain that any concerns you may have will be properly addressed. The law firm will make every effort to foresee and resolve any issues that could potentially lead to your financial loss or inconvenience. With Ghasemi Law, you can rest assured that your transaction will be completed in a professional, timely and attentive manner. We appreciate the opportunity to assist you with your transaction and hope to make it an enjoyable experience for you.