Dropping money on a deal for which a building hasn’t seen the light of day yet is risky. Experts say when it comes to these kinds of real estate transactions in Ontario, would-be purchasers would do well to spend some time researching the developer before signing on the dotted line and shelling out a down payment on a presale condo. That advice comes as hundreds of people had their deposits returned recently on a condo development in a trendy part of Toronto that flopped due to problems with permits, financing and approvals, according to the developer.
Those who would have done their research would have found that the same developer did the same thing a few years back. Having gained that tidbit of information would have saved purchasers a lot of time, money and allowed them to search for a more appropriate deal. Experts say using a developer who has been in the business for some years and has a stellar reputation might be the way to go rather than using one lacking a proven track record.
A real estate consulting firm found that since 2012, 23 condominium projects have been axed in Toronto with five of those in 2016. Some purchasers had their money tied up in these developments for months. But with that said, between 95 to 97 per cent of proposed condo developments in Toronto do actually come to fruition.
Some real estate deals can be risky, so doing research on a potential project is important. An Ontario lawyer could offer assistance when it comes to penning any deals. A lawyer experienced in real estate law will ensure his or her client’s interests are looked after, and can help a proposed buyer do his or her homework on builders and developers.
Source: msn.com, “Buying a presale condo? Do your homework”, David Hodges, Nov. 16, 2017