National Blueprint Trends and Insight - Digital Magazine - Flipbook - Page 32
DECODING DEPOSITS: YOUR GUIDE TO GETTING STARTED
Deposits are typically a percentage of the purchase price and can be spread out over several
installments. This initial payment demonstrates your serious intent and helps the builder manage
construction financing.
“Buying from a reputable builder can be the best place to start,” says Romanelli. Doing your research
into the reputation of the builder before putting down a deposit will help you make this important first
step with confidence.
OTHER IMPORTANT STEPS IN THE BUYING PROCESS:
VERIFICATION AND IDENTIFICATION
As part of the deposit process, buyers need to verify their identification for
FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). This step
is mandatory to comply with anti-money laundering regulations and ensures that
all transactions are legitimate. Ensuring your identification is correctly verified is
essential for both legal compliance and the security of your investment.
AGREEMENT OF PURCHASE AND SALE
This is the formal contract between you and the builder, detailing the terms and
conditions of the purchase. It includes important information about the deposit
amount, payment schedule, and the buyer’s and builder’s obligations.
STATEMENT OF CRITICAL DATES
An essential document in the deposit process is the Statement of Critical Dates.
This document outlines key milestones in the construction and purchase process, such
as the expected completion date and the closing date. Having a clear understanding
of these dates helps you plan and ensures transparency in the transaction.
TARION WARRANTY INFORMATION
Purchasing from a reputable builder often includes the benefit of a Tarion Warranty.
This warranty protects against defects in work and materials, ensuring that your
investment is secure. The Tarion Warran safeguards homebuyers by, offering coverage
for major structural defects and other issues that may arise after purchase.
CONDO DOCUMENTS TO EXPECT
For condo buyers, several important documents accompany your deposit and
purchase. These include the Agreement of Purchase and Sale, the Statement of
Critical Dates, and the Home Construction Regulatory Authority’s (HCRA) Ontario
Residential Condos Buyers Guide. This guide provides a comprehensive overview of
what to expect, from the deposit stage through to closing and beyond.
The Ontario Residential Condos Buyers Guide, provided by the HCRA, is a resource
for first-time condo buyers. This guide helps buyers understand their rights and
responsibilities, the buying process, and what to expect post-purchase. It covers
everything from deposit protection to Tarion Warranty details, ensuring you are
well-informed throughout the buying process.
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NATIONAL HOMES DIGITAL MAGAZINE