New Build vs Resale


What to Consider

A lot of buyers go directly to the builder, but they don’t understand that the builder’s salesperson is working for the builder, so they don’t go in with their own Realtor. The salesperson is NOT working for the buyer's best interest, but rather they are working for their Developer client. ALWAYS hire your own Buyer Representative from an outside brokerage.

Questions to ask a Real Estate Sales Representative

Will you represent my interests only?

You can opt to deal with the Builder’s real estate agent, but you should really enlist one who will act only on your behalf.

How much experience do you have in helping clients buy condominiums?

Buying a condominium is very different from buying a traditional house so it’s important that your agent specializes in condominiums. Ask the agent how many condominium buyers she or he has represented in the last 12 months and be sure to get three buyer references (who are unrelated to the agent). If you’re buying a new condominium, an experienced agent may be able to help you to secure upgrades and better terms from the developer.

How familiar are you with the neighbourhood(s) in which I want to buy?

A neighbourhood specialist will know the desirable areas and can readily advise you on pricing as well as the benefits and drawbacks to the neighbourhood.

How much time will you give me to review important documents? 

There’s a lot of paperwork when you buy a condominium. Ensure that you and your lawyer have plenty of time to go over it before signing. When drafting a purchase offer for a condominium, what clauses do you normally include to protect the purchaser?

A realtor skilled in condominium purchases should know to include protective clauses unique to condominium buying, such as making the offer conditional upon a satisfactory review of the condominium’s documents.In jurisdictions offering this service, you may want a provincial condominium review specialist to examine the documents. 

Are there any fees or charges I need to know about? 

If you deal with the vendor’s agent, there should be no charge to you, as the agent will be paid a commission by the vendor. An agent acting exclusively for you should not charge a fee because he or she normally shares in the vendor’s agent’s commission.

Who's Managing in the Interim? The Developer. (Conflict of Interest?)

Usually, a property management firm, under the direction of the Board of Directors, runs the day-to-day affairs of a condominium corporation. Some condominium corporations are self-managed. The Board is responsible for carrying out the obligations of the Corporation as set out in the Act, the condominium documents (declaration, by-law and rules) and any agreements to which the corporation is a party While a property management firm under contract to the corporation normally makes the day-to-day management decisions, final authority for policy decisions rests with the Board of Directors of the corporation. Directors are elected and can be removed by the owners. A director’s term is usually three years. If the condominium corporation is unhappy with the agreements entered into by the developer on behalf of the condominium corporation, the Condominium Act permits the Board of Directors and/or the owner.