Phase 5: Okay You’re Ready to make the Purchase official
Always obtain legal advice before buying a brand-new home as the contract and details can be overwhelming even for those who often read contracts.
- Before you sign a purchase contract, you may consider having a real estate lawyer review it before you do. Standard purchase agreements are designed to keep everybody out of court, but they come from the Builder and are generally not designed with language that protects you the buyer.
- Make sure to be clear about what deposits are required, when they are required and that you have rights in place to ensure your financing and other items are in place prior to making the contract firm. Also, be sure to understand what deposit money is or is not refundable.
- Generally in Canada you are entitled to a standard cancellation period ( cancellation rights) which really is defined as a Buyers remorse period. Maybe you were excited that day and the show home was amazing…now the price, move, life decisions are changing that perspective. For the most part, you SHOULD have time to really think it over before moving forward. Be sure to understand your liability and commitments.
- Additionally, in Canada, all New Home Builders MUST offer a New Home Warranty to the Buyer. However, each province has different rules and each with different warranty providers. It is good to research the warranty provider for the Builder you are working with and ensure they are a quality warranty provider. Many Buyers think “well if the Builder messes up its under warranty”, yep good thought until you find out that the Warranty provider has that Builder as their main client paying their bills so make it as difficult as possible to get the items you want covered. Back to those horror stories we mentioned at the beginning you heard from your friends.
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