I don't have a lawyer to go over the purchase agreement. But my friends who purchased condos before helped me went though them and they said it was a typical agreement. Can you tell me what areas your lawyer doesn't like?
-In the purchase agreement, there is no clause that protect the buyer when the HST in
effect on July 2010. Basically, the original agreement says the buyer could be ask to
absorb the 8% PST and then would have to get a refund from the government. That is ten of
thousands on top of your purchase price. How long the government will give you the
refund? Nobody knows because everything is still up in the air.
-He thinks the levys, development charges, and etc should be absorb by the builder. He
also thinks $1,500 max for water meter installation is too much. He will make some
changes on the capping numbers.
-He suggests to put a clause where if the builder delays the construction over a certain
time, the buyer should have an option to walk out of the deal.
-The builder should also issued something in writing under my name that the deposit in
excess of $20,000 will be cover by the condominium act, since Tarion only covers
I don't remember the other things but he will be drafting a format amendement to the deal today so I can bring it to the sales office. He also will fax one to the builder's lawyer.
What do you guys think about it? The thing that I'm really worried is the HST part. To be honest with you, I can't afford another $20k tax on top of the purchase price plus closing cost. It could be a deal breaker for me if they can't absorb it.
I'm not aware of any delay of construction will allow the buyer to walkout. Is this common in most purchase agreements?
I would like to know more about this HST and at what point am I paying for it. I also heard a lot of recent rising prices was a reflection of HST, but if it's part of the initial condo cost, perhaps the builder should amend the agreement to reflect that so you won't need to pay an additional tax afterward.
Last edited by animatrix; 2009-Jul-27 at 17:40.
Are you guys aware the unit, Daffodil no longer exist? I just learned they are planning to change the unit/layout completely and I have no ideas to what. The lady said it could be a 2 bed or the same 1+1, but different layout. I asked her what about the people who purchased that unit and she said they will have to accept the changes or change a different unit....strange.
She did say they will know by next week or so with the new layout.
Not surprising as they have your money and they don't want to lose it.Nobody contact me for the change
I don't know what is the standard, but when my lawyer see that the builder can delay the construction as long as they want, he wants a clause to protect my rights in case when it happens I can decided whether continue to wait or cancel the agreement. You need to know that you will be putting over than $40,000 as a deposit for at least 2-3 years. Do you still want to wait when they delay the construction 1 year later?
Regarding HST, the prices that you see right now are GST included only. When the HST takes effect in July 1,2010 the builder could ask you to pay the 8% PST of the purchase price. Now, if you purchase $300k unit, you are looking to pay $24,000 in tax on top of your closing cost. I know I won't have that kind of money. You then claim a rebate 75% of your 8%. You will get the 6% back to you. When do you get it? I don't know. Right now everything is still in the air. We don't know how the HST will be implemented. There could be different scenarios. You can simply deduct the 6% from the 8% at the time of closing and then just pay the difference, or you have to pay full 8% and wait for the refund of the 6%, or else. We don't know how this tax is going to work. I can not take chance. If the government ask the buyer to pay first 8% PST then refund the 6% later, that is the money that I won't have. If I can't pay the tax, it means I can't close then I'm screwed.
Probey, did you get an assignment inserted to your purchase agreement? If you did, worse come to worse you can sell it to someone else.