new construction private purchase

[noodlesalad]

Hello,
I am looking for information on purchasing a new construction CONDO privately. What is the procedure?

I am interested in a responding to an ad for a new condo for sale, not yet built. I spoke with the lady and she seems to be an investor and has sold several new construction units herself ... What are the steps I need to take as I am a current condo owner right now and I would need to sell my place in the near future. As well, I currently have a mortgage and would be porting this over to the new property if I buy it?

If the seller and I agree to a price, then what? Who do I pay and how does it work from there? Thanks.

 

[rbt]

I strongly advise you to hire a real-estate lawyer and speak with them.

Incidentally, your lawyer will usually handle the transaction on your behalf, making sure all of the papers are in order at the same time.

The mortgage changes are up to your specific bank and mortgage package. Many times they're tied to a specific property and are not transferable to a different property though it may be transferable the new owner.

 

[Observer Walt]

Agreed, get a lawyer and make sure all documentation is reviewed by the lawyer before proceeding. This should include the Status Certificate (formerly known as an Estoppel Certificate) for the unit which you are buying, which outlines such things as the monthly concominium maintenance fee, the current financial status of the condominium corporation, etc.

Make any offer conditional on review of documentation by the lawyer.

Money is exchanged by way of your lawyer. The actual purchase price will almost certainly not be what is paid to the vendor. Adjustments up or down are made for various factors, particularly the realty taxes and the condo fees which have been paid (or not) up to the date of closing, as well as any utilities, etc.