When purchasing a property from a builder in Ontario, it’s essential to understand and carefully review the builder agreement. This legal document outlines the terms and conditions of your purchase, including important details about the property, pricing, warranties, and other important aspects. In this blog, we’ll provide a guide on how to read and understand a builder agreement in Ontario.
Take the time to read the builder agreement thoroughly and understand each section. Pay close attention to clauses related to the property description, purchase price, deposit amounts, payment schedule, and any optional features or upgrades you have selected. Understanding the builder agreement is crucial when purchasing a property in Ontario. Engaging a real estate lawyer, thoroughly reading the agreement, and seeking clarification on any ambiguous clauses are essential steps.
Review the purchase price and payment terms specified in the agreement. Understand the breakdown of costs, including any applicable taxes, fees, or levies. Pay attention to the payment schedule, which outlines when deposits and subsequent payments are due. Note any penalties or interest charges for late payments and ensure they are reasonable.
Carefully review the builder’s obligations regarding the construction, completion, and possession of the property. Note the estimated completion timeline and any provisions for possible delays or extensions. Understand the process for conducting inspections and the builder’s responsibility to address any deficiencies or outstanding work before closing.
Pay attention to the termination and cancellation clauses in the agreement. Understand the conditions under which either party can terminate the contract and the implications for deposits or other funds paid. Be aware of any cooling-off periods or specific circumstances that allow you to cancel the agreement without penalty.
Note the dispute resolution mechanisms specified in the agreement, such as mediation or arbitration, in case of disagreements between you and the builder. Also, verify the governing law under which the agreement falls, which is typically Ontario law.
Familiarize yourself with the warranty provisions outlined in the agreement. In Ontario, all new homes are covered by Tarion Warranty Corporation, a statutory warranty program. The builder agreement should specify the coverage and duration of various warranties, including the warranty for major structural defects. Ensure you understand the warranty terms and conditions and what steps to take in case of any issues
Contact Dhiman Law Today
If you are looking for a lawyer to review your builder agreement, look no further! Our lawyer is here to help you navigate the complexities of the builder agreement in Ontario.
Purchasing a property from a builder involves significant financial and legal commitments. Understanding the intricacies of the builder agreement is crucial to protect your rights and ensure a smooth transaction. Our knowledgeable lawyer has a deep understanding of the laws and regulations surrounding new construction purchases in Ontario. We will carefully review your builder agreement, explain its terms and conditions, and provide valuable insights to safeguard your interests.
Call us at (613)-696-6777 right now to set up a consultation, or contact us at info@dhimanlaw.com. We look forward to hear from you and assist you in achieving your real estate objectives!