Pre-Delivery Inspection (PDI) For Condominiums

 

Tarion 

When you purchase a pre-construction condominium, you typically do a Pre-Delivery Inspection around 30 days before you take possession and receive your keys from the builder. 

During the inspection, you will meet with the builder's rep to flag any damage inside the unit and the builder will fix these items before occupancy. 

You will be given information for items that need to be repaired under the Tarion New Home Warranty. The Warranty has a 1 year portion, 2 year portion and a 7 year portion. 

Here's what's covered: 

1 Year: 

• defects in workmanship and materials
• defects that cause the building to be unfit for habitation
• Ontario Building Code violations
• Major structural defects
• Unauthorized substitutions 

2 Year: 

• water penetration through the basement or foundation 
• water penetration through the building envelope
• defects in the electrical, plumbing and heating delivery and distribution systems
• detachment, displacement or deterioration of the exterior cladding
• violations of the Ontario Building Code that affect health and safety
• major structural defects

7 Year: 

• the seven year warranty provides coverage for major structural defects, and is outlined in Tarion's 'Bulletin 24"
• defects that result in failure of a load-bearing portion of the building or materially and adversely affects it's load-bearing function
• defects that materially and adversely affect the use of the building for the purpose of which it was intended

Buying Pre-Construction - BRING AN AGENT

Bring a licensed agent

Sometimes buying a pre-construction condo can be a good idea. Many times, it's risky and it's a bad idea. 

How can anyone know what will happen 3-5 years into the future?

How do you make a good decision and what should you look for in your purchase? Ask a licensed agent. 

BEFORE you go to the builder sales centre, speak to a licensed agent, and make sure to go together on the first visit.* 

So why is that though? Here are 6 reasons: 

1) your agent SHOULD BE LICENSED, and therefore working for your best interest, not for the builder. 

2) repeat - a builder sales rep is working for the builder, not for you. They will give you a booklet, show you a nice building model, and will give you a price list and inventory sheet. These are units they release periodically. 

3) a builder sales rep is typically not licensed. They sell you units that are released at that moment in time. Sometimes better units come up later (for more money). They might want to sell you the one that is the hardest to sell. You know, the one above the garage or garbage entrance, or has low light or a weird layout, maybe with a column or two. 

4) a licensed agent will ask the builder reps about closing costs (and making sure they are capped at a fixed amount on closing), development charges, assignment privileges (ability to sell your contract to a new buyer if your situation changes), will try to negotiate upgrades if available, and any other questions you need to know. 

5) a builder rep will take you through the process to buy, but may not get specific on the consequences if things change in the future.. for example, interest rate increases, builder delays, mortgage challenges, builder extortion fees before closing, and proper referral to lawyers. 

6) CHOOSE A REPUTABLE BUILDER WITH A TRACK RECORD OF SUCCESS OVER A LONG PERIOD OF TIME. Your licensed agent should know who they are, and if they don't, choose an agent with experience in pre-construction sales. 

*if you don't bring your licensed agent on the first visit, the builder typically won't pay a commission and subsequently your licensed agent will not be able work for you in the transaction, for your best interest. 

Buying A Condo, Think About Resale

Toronto Condos

There are certain things to consider when buying a condo. 

One of the most important things to know when buying a condo is actually not just the unit or the actual building, but focus on the resale potential. 

Make sure it has what the next buyer will want: 

• a nice view
• an open balcony
• not above the garage entrance or garbage area
• not beside the garbage chute

It is also important to get as much square footage that your budget allows. If you can get the den, get the den. If you can afford the 2nd bedroom, absolutely get the 2nd bedroom. 

In the future, space is sparce, and people in the future will pay to have more of it. 

Builders are always building smaller units, so get as much as you can today.