Newly Constructed Condominiums
Purchasing a new condominium involves some intricacies because unique problems can arise.
Read the disclosure statement you receive when you sign your agreement carefully. It contains important information about your condominium. You have a 10-day "cooling off" period once you receive the disclosure statement. If it contains information you were unaware of and you feel you cannot complete the transaction you can terminate the deal within this 10-day period.
A condominium agreement is different from single family agreements and even more so with newly constructed units because it contains an occupancy date that is often different than the final closing date. When the Purchase Contract is signed you are given a tentative occupancy date. Purchasers are given a "confirmed" occupancy date once the builder has established one. Review the Purchase Contract to determine when the builder must provide the confirmed occupancy date. Often the purchaser will take possession of the condominium as a tenant initially and title will transfer at a later date. The final closing date may occur several months after you move in. Registration of the Condominium Plan, establishing a condo corporation, and transferring control from the contractor to the new owners can all cause delays.
When signing the Purchase Contract, you will be required to provide a deposit for the condominium unit and possibly for items such as parking spaces, lockers and upgrades/extras. With new construction the contractor may request in excess of 10% of the purchase price as deposit to his account to be used for construction. Be sure that the contractor is reputable.