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Development & Education Levy (UNCAPPED closing costs)

Seesus

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Just wanted to run this by all the gurus here at UT to see if am righteous in being a little worried about this. I have bought a pre-con condo from Monarch builder which is due for occupancy in around 2012. One thing that now i am realizing is that my lawyer did not advise me to cap the closing costs. Thanks to UT as by reading the posts i now figured that a cap on this cost can be a very important amendment.

At any rate, I am a first time home buyer and at the moment have a agreement of sale with no cap on the closing costs. I am reading the closing cost can be upward of $10k in some cases where there are no caps and am worried if i have exposed myself to a potential disaster by not having it capped. What should i do besides just getting worried. Is it a possibility that Monarch can actually put my closing cost to a horribly higher value compared to the ones who are capped. Am i totally screwed because of this stupid mistake that my lawyer has made ?

Any one here has any experience of situations like this with any builders, if not with Monarch, I would really appreciate all the guidance i can receive.

Thank You
 

MBS-Guru

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Just wanted to run this by all the gurus here at UT to see if am righteous in being a little worried about this. I have bought a pre-con condo from Monarch builder which is due for occupancy in around 2012. One thing that now i am realizing is that my lawyer did not advise me to cap the closing costs. Thanks to UT as by reading the posts i now figured that a cap on this cost can be a very important amendment.

At any rate, I am a first time home buyer and at the moment have a agreement of sale with no cap on the closing costs. I am reading the closing cost can be upward of $10k in some cases where there are no caps and am worried if i have exposed myself to a potential disaster by not having it capped. What should i do besides just getting worried. Is it a possibility that Monarch can actually put my closing cost to a horribly higher value compared to the ones who are capped. Am i totally screwed because of this stupid mistake that my lawyer has made ?

Any one here has any experience of situations like this with any builders, if not with Monarch, I would really appreciate all the guidance i can receive.

Thank You

i wouldn't worry too much over uncapped fees. I know a lot of first time buyers fail to even seek a lawyer to look over the docs so there are a lot of buyers who have uncapped fees. Having said that, monarch prides itself on being a honest, reliable and reputable builder with many years of experience so i highly doubt they will try to screw their buyers. (Note, you could still go in and ask for the fees to be capped as most reputable builders (IE Great gulf or menkes) have standard amendments to cap extra fees that they use and they'll just do it for you if you ask for it).
 

Seesus

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i wouldn't worry too much over uncapped fees. I know a lot of first time buyers fail to even seek a lawyer to look over the docs so there are a lot of buyers who have uncapped fees. Having said that, monarch prides itself on being a honest, reliable and reputable builder with many years of experience so i highly doubt they will try to screw their buyers. (Note, you could still go in and ask for the fees to be capped as most reputable builders (IE Great gulf or menkes) have standard amendments to cap extra fees that they use and they'll just do it for you if you ask for it).

Thank You MBS. I will try and connect with them to see if this is something that can be done. Much appreciate your response.
 

Seesus

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I did call them and spoke with the person in sales, She is telling me that nothing can be done right now (which is not a surprise), and she mentoned that she doesnt know how much the closing cost would be. She is saying that in some cases it has been 8k (ouch) and in some cases it has been none. At any rate I am still worried with all the changes happening in Ontario with HST and what not, how much could be a wild guess at the amount of closing cost for a project in North York ? If this goes above 5K for example, I will probably have to take a chunk of the last installment and that would hurt me real bad.

Any suggestions or experience from anyone is much apprecaited :)
 

shawn_c

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Since your agreement is cemented... there's pretty much nothing you can do about it, unless you want to cancel your contract and lose your deposits.

That said, Monarch is one of the bigger builders and does pride itself in being honest and fair. Also, if there was something really crazy to happen... it might turn out like this: http://www.yourhome.ca/homes/column...s-hit-with-big-bills-for-surprise-adjustments

But in that case, there would be a big group of buyers that could band together to get justice.
 

W. K. Lis

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With education delayed until September, what changes will have to be looked at?

Start with school supplies...

Crayola Just Released Crayons With 24 Skin Tone Shades So Every Child Can Color Themselves Accurately

From link.

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ca3c0b0a-9f53-4a2a-96a3-6f7dac121281.f1d027e2cceffa983f53d6d7eb39d20d-610x610.jpeg
 

vwltong

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i wouldn't worry too much over uncapped fees. I know a lot of first time buyers fail to even seek a lawyer to look over the docs so there are a lot of buyers who have uncapped fees. Having said that, monarch prides itself on being a honest, reliable and reputable builder with many years of experience so i highly doubt they will try to screw their buyers. (Note, you could still go in and ask for the fees to be capped as most reputable builders (IE Great gulf or menkes) have standard amendments to cap extra fees that they use and they'll just do it for you if you ask for it).
Is that true? can you ask the fees to be capped globally like that? I asked a builder (not as reputable) and they said they cannot amend to the contract for 1 buyer. What is everyone else's experience?
 

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