Many people choose to buy a brand new home, as they want everything to be clean and fresh. Did you know that we can help protect you and negotiate certain things from your Builder?
Did you know that you can have a Licenced REALTOR representing your best interests ?
It's nothing but a benefit to you! And....we never charge you, the buyer, any commission when you work with us to help you in the purchase of a new home direct from any builder.
When you work with us we'll guide you through the whole process of buying a brand new home, what to look out for, and the deadlines you have to consider when buying new. It is quite different from buying a resale home There are a lot of differences buying a new home, and even more if you decide to buy a new condo.
There are things you need to know before you buy, as well as some rules and regulations you need to follow after you move into your new place.
Questions you might have about buying a brand new home.
Are you an investor looking to buy pre-construction?
Why not take advantage of our services? Not only will we help you with the purchase of your new home property (free of charge) we will also give you free exposure on our website to help you find the right tenant for your property.
When do we list our home if we buy a brand new home?
Contact us. We can also give you additional information on how and when to list your home. Timing is critical, if not done properly you could end up owning two homes or having nowhere to live.
What are the benefits of purchasing a brand new home from a Licensed Realtor?
We represent your best interest. The Sales People that work for the new home sites are representing the best interest of the Builder. We will do all the research on the builder so that you know that you are buying a good product.
Again we are looking out for your best interests. You need to know what the neighbourhood will look like when all the construction is completed.
Will there be a major hydro corridor running through your back yard, or Will all the street utility boxes be on your front yard?
You’ve seen those large green metal boxes holding hydro, cable, and the Canada Post “super mailboxes”. They have to be put somewhere but do you want them on your lawn?
How do I reserve the perfect lot?
Call us and we will help you find the best lots, as well as when new releases hit the market. Just let us know if you want an end-unit, or not backing onto other houses, or anything else that you want in the lot.
Do you know how the process works when buying a brand new home?
You will want to reserve your lot. Each builder works differently, however generally speaking you will need to come up with three different deposits (IE: Single family home = $5000 upon a firm sale, then a further $10,000 30 days later and then an additional $10,000 after the next 30 days. You are then responsible for the reminder upon closing.
I am looking to move now but I want to buy brand new...
If you have a knowledgeable Licensed Realtor they will know about all the early occupancy properties available within the new home builder communities.
I don't want to have to pay an agent to help me!
You don’t pay us anything because the new home builder pays our fees. We guarantee in writing that you will never pay us any commissions.
Tarion Warranties for New Homes
Everyone wants to ensure that the new home they buy is ensured with the provincial Tarion Warranty.
But what happens when someone buys a property before it is constructed, then flips it on or before construction is completed?
Tarion Amends Registration Rules for New Home flip
REALTORS® who deal in new home and condominium sales take heed: there are new provisions for registering vendors with Tarion Warranty Corporation.
When a person purchases a new home from a builder, but never occupies it and then resells it, they are required to be registered with Tarion.
Under Ontario’s New Home Warranty Act anyone who sells a new house in Ontario without registering it with Tarion is liable to a fine of up to $25,000, a sentence of up to one year in jail, or both.
Previously, registration meant completing a detailed vendor/builder agreement, paying a $600 fee, undergoing a financial review and posting a $10,000 performance bond – even though the house was already covered by the builder registration.
However, Tarion, which administers the Act and provides new home warranty coverage to most new houses and condominiums in the province, has changed its registration requirements for purchasers who resell (or "flip") their homes without moving in.
The new approach to dealing with resellers of new homes means the usual detailed vendor/builder agreement is not used.
Instead, Tarion has introduced a letter agreement that the new sellers must provide to the ultimate purchaser with a disclosure page that contains information such as:
a statement that the sale is effectively a resale
disclosure of the original warranty start-date
the status of the remaining warranty coverage
and contact information to enable the purchaser to check on the status of any claims made in respect of the home.
REALTORS® representing resellers in this situation can obtain the agreement form from Tarion and use it as a schedule to the listing and the Agreement of Purchase and Sale.
In its Application for Registration – Resellers (Resellers/Flippers) form, Tarion defines a resale or flip as:
“A resale or ‘flip’ involves a scenario where the purchaser of a new home (“Reseller”) does not personally occupy the home but, instead, sells it to another purchaser.
This can occur in a number of different ways, including, for example:
(i) A condo investor who resells to a new purchaser on the same day that the original transaction (between the vendor/builder and condo investor) closes; or
(ii) A purchaser who buys a home but for various reasons (e.g., divorce, change of job), never occupies the home and resells it later, perhaps after many months.
Applications by reseller/flippers will be processed in a ‘fast track’ manner. This is for the true reseller/flipper only, not for repeat offenders or illegal Vendors (charged by Enforcement).
The reseller/flipper will have to complete the application form, Vendor Agreement and submit the $350 fee. If the home is already enrolled it does not need to be re-enrolled (it will remain under the original Vendor/Builder).”
Mitchell says registration can be processed “usually within two working days. The form is available through the Tarion call centre or can be picked up at the Tarion office in person.
Although the reseller (or “Vendor”), as defined under the Act, is responsible for obtaining the registration package when flipping a new home, REALTORS® representing resellers need to ensure clients are aware of these requirements to protect themselves from liability.
One of Tarion’s enforcement officers sent a letter to a salesperson involved in an unregistered new house flip under investigation. It highlighted the REALTOR®’s obligation under the Code of Ethics. It read:
“If the REALTOR® is acting for such a vendor then I would believe they would have a responsibility under their Code of Ethics if they were to advise such a vendor that it is ok to sell under these conditions or did not act when advised by us that the vendor of the unit they are selling is unregistered, they could possibly be opening themselves up to charges of Counseling or Aiding and Abetting.”
But Tarion says they rarely need to enforce these regulations and that the small percentage of offences usually occur in rural areas. “The reseller registration requirements are there to protect the consumer who may not know they are essentially buying a resale home, “ says Rob Mitchell, Director, Industry and Government Relations, Tarion Warranty Corporation.
“Buyers need to know they have some recourse should any problems arise with the home within the warranty period.”
Mitchell says REALTORS® should contact Tarion if they have any doubts about a new home’s registration status or misunderstanding about what’s covered under the warranty program.
Thanks for reading... if you have any questions, contact us.
