7 Things You Need to Know Before Investing in Pre-Construction Condos (The Series- Part 2)
The 10 Day “Cooling” Period
The 10 Day cooling period is mandated by Ontario law on all new condominium purchases in the province, and it gives you an advantage in the Pre-Construction market that you just don’t have in Resale.
When you purchase a condo from a developer, you have 10 calendar days from the date of signing to decide if you want the unit or not. The 10 day grace period has no obligations, no penalties, no “gotcha’s”.
Mourad Hanna and his team recommend using the 10 Day cooling period to your advantage. In Toronto’s rapidly growing market, buildings sell out on average within 3-6 months from the date of sales. Typically, builders increase their prices regularly and change incentives as they open up sales to the public.
The 10 day cooling period allows you to reserve the price, the incentives, and ensures the builder cannot sell the suite to anyone else or change the price on you.
There are two things Mourad recommends doing during your ten day cooling. First, have a lawyer review your Agreement of Purchase and Sale with the builder to give you the scoop on closing costs & what the fine-print legal-jargon says.
Secondly, take a look at other options. Go look at another comparable pre-construction project, and compare the prices and incentives to be sure you’re getting a good deal.