As the condominium market in Toronto continues to expand there is considerable interest in purchasing pre-construction units. These are units that will be developed, constructed, and administered by one or more developers prior to being occupied. The sale of these units typically takes place through a reservation agreement with full payment made before construction begins. This means buyers purchase units without seeing a physical model of the development or knowing what the interior layout or finishes will look like.
There are a number of reasons why buyers may be interested in pre-construction condos. Some may view it as an investment, believing that the value of the unit will appreciate by the time it is completed and they can move in. Others may like the idea of being able to choose their own finishes and customize their new home. And finally, some may simply find that buying a pre-construction unit is the only way they can afford to purchase a property in Toronto.
Given this level of uncertainty, it is important that buyers have a clear understanding of their legal rights and obligations before signing a reservation agreement. A real estate lawyer can help by reviewing the contract and explaining the risks and benefits associated with purchasing a pre-construction condo.
