- Do I need to be present in person for the home inspection before handing over a new home? What are the precautions?
A: Usually about one month before delivery, the developer will arrange for a home inspection (PDI, Pre-Delivery Inspection) to check if there are any quality problems in the house. The developer will provide professional staff to assist in the inspection. Buyers can choose to attend the inspection in person, or appoint the developer or our company to do the inspection on their behalf. If you appoint the developer, the inspection fee is free of charge; if you appoint our company, we will charge a service fee of $200. After the inspection, the developer will provide a written report and Tarion Certificate, please submit a copy to your lawyer.
- Occupancy (Occupancy) and Final Closing （What is the difference between Occupancy and Final Closing?
A: There are two stages in the handover of a new apartment:
- Occupancy: The building is occupied progressively by floor, with the ground floor occupied first and the top floor last.
- FinalClosing: All owners of the building complete the closing on the same day.
Ground floor tenants can expect to wait around 3-12 months from move-in to title transfer, while top floor tenants can expect to wait only 1-2 weeks, and sometimes developers skip Occupancy and go straight to Final Closing.
- You need to be present in person Occupancy （Do I need to check in in person? What are the fees?
A: Occupancy is mainly handled by the developer’s attorney in collaboration with the buyer’s attorney, and usually requires the following documents to be submitted:
- Final payment (excluding loan portion) and attorney’s fees (cashier’s check Bank Draft or Wire Transfer to attorney)
- Occupancy Fee 12 Postdated Checks, some developers will accept direct debit from the account.
- Year-round renter’s homeowner’s insurance (about $35/month)
- Bank Loan Consent Letter
If the buyer can provide all the documents remotely, he/she can entrust us to do the move-in procedure, we charge $500 for the handling fee, including key collection and check-in.
- What is Occupancy Fee (Occupancy Fee)?
A: During the months (3-12 months) from the date of occupation to the date of transfer of title, the title of the house remains with the developer, therefore the buyer is required to pay Occupancy Fee to the developer, which covers the interest on the final installment, land tax and management fee, and the buyer is not required to pay these fees by himself. Some developers accept debit from account, while some developers only accept post-dated cheque payment, please apply for a cheque book from your bank in advance. The exact amount of the occupancy fee is usually given by the lawyer about 1-2 weeks before the Occupancy.
- Can I rent out my home before closing? Does it need to be furnished?
A: Although the title remains with the developer, most developers allow buyers to rent out their homes at this stage. Our company can assist the landlord in completing the rental and provide subsequent property management services. In Toronto, tenants generally provide their own furniture, but landlords are often required to provide curtain installation services. We can assist in contacting curtain installers and other furniture companies if required.
- Final Closing （What is the procedure for Final Closing? Do I need to be present in person?
A: Once the top floor tenants have completed the move-in process, the developer’s attorney will notify the owner’s attorney of the Final Closing.The owner will need to provide bank loan approvals and prepare the appropriate Closing Costs, including:
- Land transfer tax: house price 2 %-4%, overseas buyers (purchased after April 2017) pay an additional 15 %-25%Overseas buyer’s tax, Toronto properties from January 2025 overseas buyers pay an additional 10%.
- Construction tax: about $5,000 for a one-bedroom, $8,000 for a two-bedroom, and $12,000 for a three-bedroom, sometimes varying widely, depending on the final settlement list given by the developer.
- Utilities and miscellaneous fees: $3000-$5000 range
- Attorney’s Fee: Approximately $1500 depending on the price of the house.
- HST Rebate: Non-owner-occupied houses or houses that have been transferred to a condominium require an additional tax of around $24,000, which can be refunded by the tax office after the house has been rented out with the lease.
If no loan is required, some law firms may accept video or power of attorney signatures, but if a loan is involved, large banks will require the buyer to sign in person. Therefore, we recommend buyers to come to Toronto in person for Final Closing to avoid additional penalties due to delays in delivery. Developers are strict about the delivery date and may charge a daily penalty for any delay.
Please note: Developers usually notify the final closing only about 3-4 weeks in advance, and give the settlement list only about 1 week in advance, so if you need time to prepare the funds, please prepare well in advance.
- What should I do if I find out that there is a quality problem with my house after delivery?
A: If you find a quality problem with your home after you move in, you can deal with it in the following ways:
- Tarion Warranty: Most new homes are covered by the Tarion warranty upon delivery of the home, which includes various stages of 30-day, 1-year and 7-year warranties.
- Contact the developer: Submit a request for repairs to the developer during the warranty period.
- Legal: If the developer fails to fulfill its obligation to fix the problem, file a complaint with Tarion or consult a lawyer for legal help.
- What should I do if I can’t or don’t want to make the handover?
A: Some buyers are unable to hand over the uncompleted flats due to factors such as inability to take out a loan, so if they default and do not hand over the flats, there is a higher risk that they will be sued by the developer for additional compensation, which is usually higher, and a better option is to carry out a transfer of the uncompleted flats, which means that the purchase contract of the uncompleted flats will be resold to other buyers prior to the Final Closing.
Once a buyer has been found to take over the Toronto home, the decision to transfer is left to the developer. Some developers require that the transfer must be done prior to the Occupancy while others require the original buyer to do the Occupancy before the transfer can take place. We will explain more about this topic in a separate article.
The above are the common questions and answers for the handover of a new home, we hope you find them helpful. For further advice or assistance, please feel free to contact us or go to the bottom right corner of the home page and click.