Whether you are buying a new or resale condominium unit, remember that besides the purchase price there are other costs which you should budget for.
Have your lawyer review your Agreement of Purchase and Sale prior to finalizing its terms.
Does your purchase price include the GST? Does your purchase price include a parking space and a locker? Is there a separate purchase price that has to be paid for either the parking space or the locker? Are the parking spaces and lockers available to you only on a leased basis?
What does your purchase price include? Does the price include the costs for appliances and certain upgrades or extras? If not, what are the additional and when do these costs have to be paid?
What are the adjustments (additional costs) that are payable on your closing date?
You may be expected to pay for additional charges either on your occupancy closing date (if a new condominium) or the final closing date (both new and resale condominiums). For example, your Agreement may provide that you pay for the cost of enrolling your unit with the Ontario New Home Warranty Programme, utility hook up charges and the vendor's mortgage fees. You may also be expected to reimburse the vendor for realty taxes paid or to be paid for the entire year.
These are the legal costs that you will pay for the review of the Agreement of Purchase and Sale, the occupancy closing (if a new condominium), the final closing and the costs relating to the preparation of any mortgages. Legal fees are subject to G.S.T.
In addition to the legal fees your lawyer will incur expenses on your behalf. These "disbursements" may include (just to name a few) costs relating to the title search, title insurance (if applicable), estoppel certificates and the costs of obtaining various clearance letters.
Your mortgage – you will need to inquire with your bank to determine what additional costs you will be responsible for. Are you paying insurance fees? Are you paying for costs of an appraisal?
Land Transfer Tax and registration fees - check to see whether you are eligible for a land transfer tax refund.
Once your (final) closing is completed you will be paying common expenses, your mortgage payments (if any), realty taxes, costs of any insurance premiums (check with your insurance agent to ensure that you have adequate coverage for items not covered by your condominium's insurance policy) and any utility charges not included as part of your common expenses. Are cable fees included? Do you pay separate common expenses and taxes for any parking space or locker?
Knowing all of this before you finalize your agreement will ensure that you can properly plan and budget for your closing date.