Occupancy

The occupancy date refers to the day you take physical possession o fyour condo unit. Typically, the unit will be complete, but common areas in the buildings –hallways, lobbies and communal areas –will remain under construction. These are the key things to know about occupancy.

1 You do not start paying your mortgage during occupancy. Instead, you pay an interest only monthly fee on the balance owing to the builder, as well as property tax and condo fees. To illustrate this scenario, we’ve provided a theoretical formula below:

Purchase price: $ 5 0 0, 0 0 0

Balance payment made: $100,000

Due to builder: $ 4 0 0, 0 0 0

The monthly payment required during the occupancy phase in this scenario would be:

Monthly interest($400,000 x interest rate / 12) + condo fees + propertytax = occupancy fees. Plugging in number to showcase how this may work, let’s use the following formula:

Interest at 3.5%:

Condo fees:

Property tax:

Total occupancy fees: $1,166.66

$350

$200

$1,716.66

2 Post-dated cheques must be provided to the developer to cover the estimated period of occupancy. 3 Our team has permission to rent units during occupancy. If you buy from us with the intention of renting, this permission carries to you. However, you must first obtain landlord insurance.If you choose to rent the unit to 4 a tenant, the builder will charge back the

HST amount upon final registration.

HST paid during occupancy is recoverable, so long as a one-year lease agreement is agreed to. Documents required to recover HST include:

a.

b.

c.

d.

e. Original agreement of purchase and sale entered into with the developer

Copy of rental agreement

Copy of interim statement of adjustments received by your lawyer from the developer upon occupancy

Copy of final statement of adjustments received from your lawyer’s office at final registration

A completed GST/HSTrebate form

Purchasing a Brand Purchasing New Condo 2018 a Brand New Condo 0 5 01

REGISTRATION OF YOUR UNIT

Registering your unit means you have officially taken ownership. This step is necessary to determine certain expenses, such as the property tax. Things to keep in mind regarding this process include:

1 Your lawyer should be informed approximately two weeks before the final registration date.

2 You will receive unused post-dated cheques that were provided for the period and sale, be sure to account for the following: sale of your unit prior to registration. Many

of occupancy.

3 We highly recommend obtaining landlord insurance for your unit ifyou plan to rent, and condo insurance if you don’t.

4 If your unit is not occupied by the owner (you), the HST will be added back on your final statement of adjustment along with other builder costs.

Assignment

An “Assignment” of an “Agreement of Purchase and Sale” refers to the sale of a unit you have purchased, but do not hold the title to. You may or may not have possession of the unit, and the building may not be registered. through arealtor with apersonal network.

During the assignment process, you are essentially selling the “Agreement of Purchase and Sale” entered into with the builder to another person.

need to work with an experienced realtor and lawyer to navigate the process, whether you’re the buyer or seller.

Why would you assign a unit?

1

You want to realize a profit on your investment as soon as possible. 2 You want to avoid incurring closing costs, which will be transferred to whoever purchases the assignment.

3

You want to avoid taking out a mortgage for the unit.

When assigning an agreement of purchase

1 You must be sure that your Agreement of

Purchase and Sale does not restrict the developers charge a fee to consent to an assignment.

2 If the new buyer does not fulfill the terms and conditions of the contract, then you, as the original buyer, are still liable.

3 You must have a contract with the assignee,which should be prepared by a realtor or lawyer. A copy of the original agreement should be attached to this contract, along with condo declaration documents, acknowledgement of prior payments, the PDI booklet and any other relevant paperwork.

4 You will receive payment, along the original down with any profit earned from the difference between the original and resale prices.

5 Builders can refuse if the property has to allow assignments been advertised in the MLS, or any other public network. It is essential that you market the assignment properly, Assignments are quite common; however, you

6 To safeguard the interest of the seller, the buyer needs to make all payments (original downpayment + resale increase) to the assignor’s lawyer in trust. This amount should then be released to the assignor upon successful consent from the builder, or as provided for in the contract.

01 Purchasing a The 0 6 Brand New Condo Bahl and Yew Team. #1 Real Estate Team in Downtown Toronto