The Office of the Superintendent of Real Estate (OSRE) has released a new information brochure for consumers looking to purchase a pre-sale condo or townhome. The brochure, called Understanding Pre-Sale Purchases, identifies risks and other information that consumers should be made aware of prior to signing a pre-sale contract.
Consumers thinking about purchasing a pre-sale condo or townhome need to make an informed decision and understand their rights and obligations when signing a pre-sale contract. Prospective purchasers must appreciate the risks associated with these contracts. The Office of the Superintendent of Real Estate has received complaints from consumers who have encountered some of the issues outlined in the brochure after signing a pre-sale contract. For example, substitutions and adjustments are often made during construction. A pre-sale contract may allow the developer to substitute materials, or make adjustments to the layout of the unit or the development.
It is important that consumers consider these issues before signing a pre-sale contract and to be aware of them while their unit is being constructed. Purchasers should always obtain advice from a lawyer and/or a licensed real estate agent before entering into a pre-sale contract.