Home Buyer’s Guide
The Ultimate Buyers Guide for Investors
It’s time to
sign the deal
You’ve chosen your investment home; now it’s time to sign the deal, known as an Agreement of Purchase and Sale. Most builder contracts are fairly standard, but it’s important to know exactly what’s in it. This is, after all, a binding contract. The purchase agreement spells out everything that is included, from incentives to included features.
Documentation you will need
Requirements vary by builder, but most will need:
- Photo ID of everyone who will be present at the time of sale and added to title
- A deposit to secure your lot/unit. This can be used towards your down payment.
- Mortgage approval (most builders will require this).
- Which floorplan and lot (or condo unit) you’re interested in.
- How to contact your lawyer.
- Proof of Canadian residency/citizenship
What will happen now?
Once the contract is prepared and ready to sign, your Sales Representative should go through it with you, pointing out key elements like your expected closing date, what happens if you delay choosing design finishes and costs for additional investments that are not included in the base price of your home.
Minto offers a five-day conditional period for legal review and financing before the contract becomes binding. As our Sales Representative for details.
The process is a bit different for buying a condo. Once you sign your agreement there is other legal information provided known as the disclosure statement. Because you don’t get this information until you sign, there’s a 10-day cooling off period mandated by the Condominium Act to give your lawyer time to review the disclosure statement (and the purchase agreement). You can back out at any time within that 10-day period.
Once you’ve signed your agreement, your builder will need a deposit, a copy of your mortgage approval, and post-dated cheques for further deposit instalments. These amounts vary (see Minto Communities’ deposit structure on each community’s ‘Buying Your Home’ section).
Keep copies of everything for tax purposes.
Reversing a floorplan
Something to keep in mind: The layout of your finished home could be a reverse mirror image of the floorplans shown in marketing materials or your Agreement of Purchase and Sale. This is something to keep in mind if you are purchasing appliances for your tenants, as you’ll need to make sure doors swing open the proper way.
Confirm your deadline for choosing interior and exterior finishes, and ask your builder what their selection policies are.
What will happen next
Once your agreement is firm, construction plans are created for your home and permits requested so that construction can begin.
Ask when you will be contacted to make selections for interior and exterior finishes. Each builder has a different policy for finalizing selections, which can be done at one or more appointments.
New homes in Ottawa can take up to 18 months (and it could be potentially more) to build these days, giving you ample time to plan and budget. And if you’re buying a condo apartment, the wait could be longer. It’s common practice for a builder to wait until a majority of the units have sold before starting construction.
New homes in Ottawa take an average of 12 to 18 months to build, giving you time to plan and budget.