Mourad  Hanna

Mourad Hanna

Broker of Record

Royal LePage Realty Plus Mourad Hanna

Mobile:
416-822-7112
Office:
(905) 828-6550
Email Me

Expert Advice

 

COMMONLY ASKED QUESTIONS

 

Our team stays on top of all new developments launching across the GTA, so you don’t have to. We continue to educate ourselves on the latest opportunities and Real Estate trends to better assist you in finding the perfect property. 

 

 

HOW DO I A PURCHASE PRE-CONSTRUCTION/NEW BUILD PROPERTY?

First things first, find the right Agent with Platinum Access to the project to help guide you through the process. Platinum Agents like ourselves, have a vast knowledge and selection of the latest project launches all over the GTA for you to review. 

Once you’ve selected the area of interest it’s time to choose the development/project you wish to invest in. Our Platinum Agent will help you find a great project with a developer you can trust. 

The next step is to select the type of unit that best fits your needs. Studios - Penthouse units will be available for you to purchase (depending on the project). You will have the chance to review different floor plans and layouts from a range of suites. Some builders will also have a “Presentation Centre” to showcase the features and finishes in a Model Suite so you can grasp a better understanding of what you are buying into. After you select your unit type, we help you determine how your selection will fit into your budget.

Our Platinum Agent will then submit your request to the builder and confirm the allocation of the unit. Once confirmed, an appointment (in person or virtually) will be arranged to sign an “Agreement of Purchase and Sale”.

After you’ve signed the agreement, we help you review the documents with a lawyer to ensure everything is in place and no hidden fees/issues will arise. You now have a 10 day “Cooling Period”. If there are any problems within the 10 days, you will be able to cancel the agreement with no penalty. 

 

 

WHEN IS THE BEST TIME TO PURCHASE PRE-CON?

The best time to invest in a Pre-Construction Property is at the beginning phases of the project's launch. 

At this time, the builder invites a select group of Platinum Agents like ourselves to a Launch Event. It’s at the Launch Events that the builder will release Price Lists, Floor Plans, and Limited Time Buyer Incentives exclusively to this group of Platinum Agents. 

During the launch, our Platinum Agents will also give YOU access and the first selection of units before the builder releases it to the public. You have the chance to pick the best units at the lowest price the builder is offering. Purchasing at the beginning of a launch also gives you access to special Platinum Incentives like Discounts on Parking & Locker, Capped Development Fees, Discounts on Assignment, Right to Lease During Occupancy, etc. This is all only for a limited time! It's important to be informed and to act quickly because during the initial launch 75% of the building is likely to be SOLD and the best units already allocated to other purchasers.

 

 

HOW AND WHEN DO I MAKE A DEPOSIT PAYMENT?

After signing the agreement, the builder will ask for the initial deposit. Depending on the deposit structure and builder’s buying procedures you are expected to provide your initial deposit cheque within 24 hours of signing the contract. Then you will need to provide post-dated cheques covering a portion of the purchase price (standard 15% -20% of purchase price). 

Example:

24 hours after signing Agreement of Purchase and Sale = Initial Deposit Due
30 Days After Signing Agreement = 5% of Purchase Price Due (This Amount Includes Initial Deposit)
90 Days After Signing Agreement = Another 5% of Purchase Price Due 
120 Days After Signing Agreement = Another 5% of Purchase Price Due 
Occupancy of Building = Final 5% of Purchase Price Due 

Once the building has begun to occupy and you’ve provided your final deposit, you will then begin paying off your mortgage.

 

 

WHAT DOES “COOLING PERIOD” MEAN?

Once you sign the agreement, you will have 10 calendar days to review your agreement and suite decision, called a “Cooling Period”. This will give you the chance to check your financial situation, review the agreement with your family, and have a lawyer look at the agreement to point out any issues that may be of concern. 

If for any reason you find this is not the right purchase for you, you have the right to cancel the agreement within the 10 day Cooling Period with no penalties. 

 

 

WHEN DO I NEED A MORTGAGE APPROVAL?

The Builder requires a Mortgage Approval or Pre Approval Letter before occupancy which is typically 2-4 years from the time you signed the agreement. However, some builders will require mortgage approval within the 10 day cooling period. All will depend on what was agreed upon within your Agreement of Purchase and Sale.

Builders will require confirmation you have the capacity to close the final remaining balance of the purchase price on the unit (standard 75%-80%) come occupancy.

 

 

 

 

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