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The Pre-construction Process for Purchasing a Condo Tower | Real Estate Investing

The preconstruction process for purchasing a condo typically involves several steps. Here’s an outline of the typical process:

  1. Research and Selection: 

The first step is to research different condominium projects and select the one that best suits your needs and preferences. Consider factors such as location, amenities, price, developer reputation is a big one, and projected completion date. Go to CondoTower and it will simplify your selection process.  

  1. Initial Reservation: 

Once you have chosen a condo project, you may be required to make an initial reservation. This is typically done by contacting the sales team and booking an in person appointment. You can easily do it by registering HERE site or filling out a contact us form. We will contact you and reserve your appointment.  

  1. Reviewing Purchase Agreement: 

After the reservation, you will be provided with a purchase agreement by the developer. The purchase agreement will outline the terms and conditions of the purchase, including the purchase price, payment schedule, completion date, and any other relevant details. Take the time to carefully review the agreement and seek legal advice if necessary.

  1. Signing the Purchase Agreement: 

If you are satisfied with the terms and conditions outlined in the purchase agreement, you can proceed to sign it. This is a legally binding contract between you and the developer, so ensure that you fully understand the obligations and rights stated in the agreement before signing.

  • Upon signing the agreement, you will have to submit the FIRST deposit & your 10 days cooling off period will start. 
  • At CondoTower a lawyer will review your agreement on a timely basis free of charge and provide you with competent legal advice. 

  1. Providing Deposits: 

Upon signing the purchase agreement, you will be required to provide deposits as outlined in the agreement. The first deposit is typically done with a Bank Draft. For all consecutive payments, You will be required to provide post dated cheques. Each builder will have their own payment schedule. 

  • Prior to breaking the ground and starting construction, the builder will have to sell a minimum amount of units. Each builder has a different threshold but usually it’s somewhere between 60-80 %. 

  1. Construction and Updates: 

Once the purchase agreement is signed and deposits are provided, the developer will commence construction on the condo project. During the construction phase, the developer may provide periodic updates on the progress of the project, including milestones and any potential delays.

  • Please note that the average time frames to complete the construction for a 
  • high-rise is around ~5-6 years 
  • For low raise is about 3-4 years 
  • And for house is 1.5 to 3 years

  1. Final Closing and Occupancy: 

As the completion date approaches, the developer will notify you of the final closing process. This typically involves the final payment of the purchase price, associated closing costs, and any outstanding amounts. After the closing, you may be able to take possession of your condo unit, depending on local regulations and the completion status of the project.

It’s important to note that the preconstruction process can vary depending on the specific developer and location. It’s always advisable to carefully review all documents, seek legal advice if needed, and stay in communication with the developer throughout the process to ensure a smooth transaction.