When shopping for a new Toronto condo buyers should be aware of hidden condominium closing costs.
Do not sign sales Contract without your Buyer Agent
Your own buyers agent should be able to point out some of the extra closings costs hidden in the fine print of your new Toronto Condo sales contract.
Check sales contract with your Lawyer
In Ontario buyers of new Toronto Condos have a 10 day cooling off period upon signing a contract after which the agreement becomes legally firm and binding if you do not inform the builder/developer that you wish to abort the contract.
You should use this period to have your sales agreement checked by your real estate lawyer and have them explain the additional closing costs to you.
Some of the more common hidden closing costs are as follows:
Tarion New Home Warranty
Each new Toronto Condo comes with a new home warranty issued by Tarion Home Warranty Program.
The builder/developer passes along the cost of this warranty to you, the buyer.
Education Levies
School boards in Ontario charge a levy on each new condo built for new schools required as a result of new developments.
Municipal Levies
The City of Toronto will also charge a levy on each new Toronto Condo unit built for new parks and such.
Municipal Sewer Connections
There will be a municipal sewer connection charge that the builder/developer will pass on to you.
Electric Meter Connection
The local electrical utility will charge for an electrical meter connection which the builder will pass on to you.
Gas Meter Connection
If your new Toronto Condo building has individual gas heating to each unit the local gas utility will charge a gas meter connection charge. The builder will pass this on to you.
City of Toronto Transit Pass
The City of Toronto now requires builders to include a Metro Toronto Transit Pass for a period of one year to every buyer of a new Toronto Condo unit. You can be sure the builder will pass this additional cost on to you.
These are just some of the additional hidden closings costs but there will likely be others buried in the fine print of your new Toronto Condo sales contract.
They can and will add thousands of dollars to your costs on closing day.
Your sales contract will not necessarily specify a dollar figure on each of these costs as they could change by the time the closing date comes along.
Once you have an idea what these are you can have your buyers agent go back to the builder/developer and negotiate a cap on these costs allowing you to at least budget for them.
This will ensure there are no nasty surprises when the closing date of your new Toronto Condo arrives.
About this Author
John Lavin is a full time Realtor with 25 years experience helping buyers and sellers of homes, condominiums and investment properties in Mississauga and Toronto. Please visit http://www.john-lavin.com to search for homes and condos in Toronto and Mississauga Ontario.
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