Navigating the intricacies of home purchases involves understanding the unique processes for acquiring a resale home versus a new home from a builder. Let's dive into the key distinctions between these two routes to homeownership.
Resale Home Offer Process: When considering an existing home, the journey involves essential individuals such as yourself, a real estate agent, and possibly a legal professional. After identifying your desired home, prompt action becomes crucial. Determining the offer amount, deposit, and executing a "contract to purchase" are primary steps. This legally binding document outlines critical details, including buyer and seller information, property address, offer amount, deposit, closing date, inclusions, conditions, and offer validity. Elements like the closing date, deposit amount, and specific conditions can significantly impact the seller's decision. Proceeding a thorough review and agreement of the contents, the contract is signed by the buyer and presented to the seller for consideration.
Subject to Inspection: An integral step includes hiring a professional inspector to thoroughly inspect the property and look for any potential hidden issues that the buyer should be aware of before finalizing the purchase.
New Homebuilder Purchase Contract: Embarking on the acquisition of a new build home includes comparable key participants and legal aspects. The builder furnishes the Purchase and Sale Agreement, necessitating meticulous scrutiny by your lawyer. Differing from resale contracts, new build home agreements are elaborate and differ among builders. This all-encompassing document encompasses particulars like residence description, cost breakdown, financial conditions, building timetable, design preferences, assurances, evaluations, and conflict resolutions.
A New Home Contract Includes:
- Detailed home description including materials, layout, size, features
- Price breakdown with upgrades and payment schedule
- Financing terms and conditions including the amount and timing of deposits
- Construction timeline and whether site visits are permitted prior to completion
- Customization options and amendments decided at the time or added later
- Unit inclusions for condo or strata purchases, plus anticipated condo fees
- Warranty information and dispute resolution
Your lawyer will review the contract, make you aware of any potential concerns, and suggest necessary modifications. Anticipate the contract evolving as construction progresses. For a more thorough understanding, consult the Canadian Home Builder’s Association for a full breakdown of new home contracts.
By comprehending the distinctions between making an offer on a resale home and signing a contract for a new homebuilder purchase, you can navigate the home buying process with confidence and clarity.
It is recommended that you enlist the expertise of an experienced realtor to represent you in both circumstances, provided the new home builder is agreeable and a home inspection is also beneficial for new builds to help find any errors or issues with the property.