Timing - How does it work

Discussion in 'Real Estate General Discussions' started by zaindo, Apr 29, 2012.

  1. zaindo

    zaindo New Member

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    We are approaching the closing of our precon condo. I am wondering how does it work from here.

    - Will the builder call or mail to confirm that condo is ready for occupancy ?
    - Should i need a lawyer after this who will help me close the legal stuff ?
    - How does the payment, closing and mortgage timing work ?
    - Do I pay everything through the lawyer to the builder ?
    - At what point does the PDI happen ?

    I am going through all these for the first time but if any one of you folks have gone through these before, please share your experience and also suggest if one should be aware of any known blips that surface during the time of closing.

    Thanks everybody :)
     
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  2. Paul Meredith

    Paul Meredith New Member

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    The developer should inform you in writing with plenty of time of your closing date. If it is coming up soon, and you are unsure, make sure you contact them right away to discuss.

    New build condos often have two closing dates. The occupancy date (the date you take possession) and the final closing date. These are usually the same date, but often with new condos, they are not. The occupancy date means that your unit is ready to move into, but the building has not yet been registered, meaning there is nothing to secure the mortgage loan against. You will pay 'rent' to the builder until the final closing date if this is the case. You won't need a lawyer for this. You really need to verify this with the builder and find out what kind of closing it is.

    You should also be shopping for your mortgage if the final closing date is coming up soon. You can lock in mortgage rates for as long as 6 months or even longer if you are dealing with the bank that the builder has a relationship with. For the mortgage, you will need a lawyer to close the transaction. The lawyer handles all the money transfering (outside of the deposits you have already given to the builder).

    Your best mortgage rates will be found within 30 to 60 days of your final closing date, however, I wouldn't wait until then to start shopping for the mortgage.

    The PDI should happen close to your occupancy date. Talk to your builder to know for sure.

    Hope this helps. If you have any questions about your mortgage, don't hesitate to contact me.

    Good luck!
     
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