Hi Newbuyer,
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?
Ok. These are some areas that he 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
$20,000.
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.