If you are planning to buy pre-build or brand-new condominium from the developer you are going to experience two-step closing process. The reason for this is that new condos are usually ready for occupation before the legal title can be given to the owner. Closing date takes place after a building is legally registered.

The first step is the interim closing. This takes place when the unit is ready for occupancy. On this date, the purchaser pays the balance owing under the contract of purchase, and this money is held in trust until the purchaser receives legal title. Legal title is transferred on the final closing date.

Between the interim and final closing, the buyer must fulfill all of the agreements laid out in the Agreement of Purchase and Sale, such as the rules and regulations of the condo and paying a monthly occupancy fee. The final closing takes place when the condo corporation is registered. This is when the purchaser is required to pay the balance of the purchase price, and the deposit money is released from trust. The developer will then provide the purchaser with a deed of the unit.

Warranties and repairs

A builder will give warranty on all final finishes for a certain period of time following the completion of the building. During this time, the builder is responsible for all repairs and deficiencies. The builder works with the board and property manager to get any necessary work done. Once the warranty period runs out, all repairs and maintenance become the responsibility of the condo corporation and its residents, and are paid for by the annual maintenance fees.

When the need for general repairs arises, the property manager and condo board begin reviewing potential service providers, asking for a range of service bids and choosing the best option.

Insurance

Condo corporation will have a blanket policy for the building, but unit owners must still purchase their own home insurance. Homeowners insurance for condo dwellers is different from general homeowners insurance. This insurance will protect a condo owner’s personal property from fire, explosion, smoke, theft and more. Improvements and balconies are also generally covered under this insurance. Before purchasing insurance for your condo, talk to a property manager or board member to learn exactly what is covered in the building’s general insurance plan.