Posts Tagged ‘deposit structure’

No two snowflakes are the same… and either are pre construction condo contracts!

With the launch of several new projects this year, I’ve seen my fair share of contracts and with all of them; the same thing remains true “THE DEVIL IS IN THE DETAILS!” It’s for this reason buyers of pre construction condos have a 10 day cooling off period for their lawyer to review the contract. But of course “reading the fine print” is basic and something all should do regardless of the type of contract…the point of this post is for something a bit more obvious! DEPOSIT STRUCTURES.

It’s typical in Toronto for a developer to ask for deposits ranging anywhere from 20%-25% from a prospective buyer. The amount is not given up front, but rather in instalments over a period of time. To better illustrate my point, I’m going to use a purchase price of $300,000 and a 25% deposit structure as an example. By the time the condo is complete and the unit registered in your name, a total of $75,000 would have been given to the developer…but before we pop the champagne and move in, let’s take a look at what gets us there!

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