Perils of buying a pre-construction condo
Beware the perils of buying or selling a pre-construction condo
In Toronto’s hot real estate market, it has almost been a given that if you buy a pre-construction condo, you’ll be able to sell it at a profit when the building is finished a few years in the future.
But a few examples that have crossed my desk in the last few months show things may well have changed.
In one example, a condo was purchased by Syrian immigrants five years ago, before the outbreak of civil war. When the building was finished in 2013, the buyers couldn’t get their money out of Syria and so couldn’t close the purchase. Nor could they find anyone to buy their contract, so they lost all their deposits, which were more than $30,000.
In another situation, the buyer was approved for financing four years ago when the condominium agreement was signed with the developer. However, when the building was finished, the same lender refused to give the financing, stating that the buyer’s financial status had changed and that he no longer qualified for the mortgage.
In this case, the buyer was able to sell the contract before closing, but took a $20,000 loss. He also had to pay real estate commission on the sale, which further increased his loss.
In a third case, the buyers were able to sell before closing at a profit of $30,000. But they later received a reassessment notice from the Canada Revenue Agency. The CRA argued that since this buyer didn’t receive title to the unit, he had to pay tax on the full $30,000 gain as though it were income, and not as a capital gain, where they would have been taxed on one half the gain, or $15,000.
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C2808375 – M4A – 55 TISDALE AVE Toronto, Ontario – $ 520,000
Prime Location.No Sidewalk To Clean.Up&Coming Neighbourhood Within Min To Future Eglinton L.R.T.One Bus To 2 Subways(Vic Park/Eglinton).Newly …
C2808402 – M4N – 143 ST LEONARDS AVE Toronto, Ontario – $ 1,995,000
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C2808461 – M6C – 284 ATLAS AVE Toronto, Ontario – $ 429,000
Amazing Hillcrest Village Location! Just North Of Vaughan Rd. Lovely 2-Storey Home With Private Driveway. Open Concept Kitchen, Dining, And Living …
C2808525 – M6C – 577 ARLINGTON AVE Toronto, Ontario – $ 939,000
Country In The City. Absolutely Massive Lot Backing Onto Cedarvale Ravine. (71.39 Ft On Ravine). Top Of Arlington Near Ava Rd With Gorgeous Ravine At Your …
C2808530 – M4N – 168 DAWLISH AVE Toronto, Ontario – $ 2,399,000
Coveted Family Home In Lawrence Park On Dawlish Ave! 4+1 Bdrms, Mstr Bdrm W/ 4-Pc Ensuite, Walk In Closet. Open Concept Kitchen & Family Room. French …
C2808574 – M3C – 735 DON MILLS RD Toronto, Ontario – $ 142,000
Lovely 1 Bedroom Condo Facing South East, Bright & Spacious, Parquet Floor In Excellent Condition, Updated Kitchen, Well Priced …
C2808647 – M2R – 35 CANDY COURTWAY WAY Toronto, Ontario – $ 335,000
Excellent Location, Steps To Bus, Shopping, Schools And Synagoges, Very …
C2808755 – M4W – 80R CRESCENT RD Toronto, Ontario – $ 2,450,000
South Rosedale s Newest Condo Building! This Brand New Coach House Will Take Your Breath Away! 3,325 Sq Ft* – Contemporary Architecture Quietly Neslted …
C2808799 – M5R – 104 WELLS HILL AVE Toronto, Ontario – $ 3,099,000
Grand Home In Casaloma. This Stand Alone House Makes You Feel Like You Are In A Castle. Very Impressive Rebuilt Home With 5 Bedrooms, 8 Washrooms Of …
C2808803 – M2K – 12 ARGONNE CRES Toronto, Ontario – $ 1,198,000
Premium 60 Feet Private Treed Lot In One Of The Best Location In North York. Potential Rental Income 3 Br W/O Bsmt Apartment. (Bright,Spacious,Dry …
C2808824 – M4W – 70 CASTLE FRANK CRES Toronto, Ontario – $ 2,299,000
Coveted S.Rosedale Ravine Cul-De-Sac!Rare Century Home Nestled On Beautiful Pool-Sized Lot.Mature Trees, Bright&Open With W/O To Spacious Double-Level …
C2808845 – M3C – 135 LEEWARD GLENWAY GLWY Toronto, Ontario – $ 200,000
4-Bed Townhouse, End Unit On Ground …
C2808960 – M2R – 15 ROBINGROVE RD Toronto, Ontario – $ 839,000
Must See! Huge Pie Shaped Lot. Fully Renovated: New Roof, Windows, Bathrooms, Wiring & Light Fixtures, New Heated Hardwood Floors & More. Eat-In …
C2808970 – M5P – 314 VESTA DR Toronto, Ontario – $ 2,995,000
Handsome Tudor Style Home In Prime Lower Forest Hill Village. Renovated Kitchen. Original Wood Panelling Throughout In Mint …
C2809102 – M2N – 260 FINCH AVE E Toronto, Ontario – $ 1,399,900
Live In, Rent Out, Build New, Excellent Re-Development Lot On Finch Ave. East, Potential Severance 50Ft X 193Ft, Great Location Close To All …
E2808380 – M1W – 29 BEVERLY GLEN BLVD Toronto, Ontario – $ 765,900
Prime & Desirable Warden & Finch, Detached 5 Bedroom, Curb Appealing, South Facing Backyard, Sun Filled Modern New Kitchen With Granite Counter Top, …
E2808415 – M1C – 33 ANDONA CRES Toronto, Ontario – $ 459,900
Rouge River, Conservation Area, Family Oriented Quiet Neighborhood, Finished Basement, With Rec Room & 4 Pc …
E2808416 – M1N – 18 AYLESWORTH AVE Toronto, Ontario – $ 319,900
This Cozy Bungalow Is For That First Time Buyer Or Empty Nester. Great Condo Alternative, Modern Main Floor Bath And Updated Kitchen, Lot Of …
E2808454 – M1P – 59 FLINTRIDGE RD Toronto, Ontario – $ 399,900
This Estate Sale Property Is On A Beautiful Tree Lined Cul De Sac. The Backyard Is Like Having Your Own Private Park!!! The Brick House Has …
E2808500 – M1B – 50 FLATFIELD TERR Toronto, Ontario – $ 439,900
3 Bedroom + A Separate Computer Nook Built By Prestigious Fernbrook Homes. Semi Detached Home. Freshly Painted, Upstairs Laundry With Stacked Washer …
E2808588 – M1E – 10 RODDA BLVD Toronto, Ontario – $ 179,000
Priced To Sell! This Multi Level Townhouse Is One Of The Best Values In The City. Easy Access To Ttc And …
E2808608 – M1V – 107 JAMES PARK SQ Toronto, Ontario – $ 499,900
Newly Renovated From Top To Bottom Monarch Built Quality Modern Home In A Friendly Quiet Neighborhood. Steps Away To Milliken Public School, Albert …
E2808618 – M1W – 270 TIMBERBANK BLVD Toronto, Ontario – $ 305,000
Well Kept, Bright & Clean Th, Practical Layout, South Exposure Large Liv. Rm., Laminate Floor In Liv, Din & 2/F Brs, Parquet Floor In Basement, Fenced …
E2808664 – M1B – 75 BLACKWELL AVE Toronto, Ontario – $ 259,900
Spacious, Recently Renovated 3+ Bedroom Townhouse In Family Oriented Location. 2 Extra Rooms On 3rd Level, One May Be Used As 4th Bedroom/Den. The Other …
E2808688 – M1P – 108 WYE VALLEY RD Toronto, Ontario – $ 499,900
Stunning& Spectacular Dtchd Corner Over Sized Full Brick Bunglow In “”Dorset Park”” Community, Shows To Perfection, Ideally Located Close 2 Shopping, …
E2808697 – M1E – 54 DUNSTALL CRES Toronto, Ontario – $ 464,800
Truly A Unique Family Home In West Hill, 4 Bedroom With 2 Newly Renovated Full Washrooms, Updated Kitchen With Stainless Appliances, Granite Counters, New …
E2808727 – – $ 1,090,000
Sunfilled 17 Yrs New Custom Built Det Home In S.Riverdale, Steps To Gerrard Sq & All Amenities. 2 Car Grge, Ecls Entrance, 9 Ceiling, Hd Wd Fl+Crown …
E2808895 – M1V – 75 AMANDA DR Toronto, Ontario – $ 599,000
Newly Renovated Detach Home. New Hardwood Floor. New Painting, Basement Separated Entry Legal …
E2809005 – M4C – 169 WESTLAKE AVE Toronto, Ontario – $ 499,000
Attention: Renovators And Handy-People… Work Started Waiting For Your Finishing Touches! Home Features Cottage-Like Main Floor And Front Yard. …
E2809044 – M1B – 8 GOSKIN CRT Toronto, Ontario – $ 369,888
4+1 Bedroom Home In A Friendly Neighborhood With Separate Entrance Rented For $ 650.Tenant Willing To …
E2809071 – M4C – 1326 WOODBINE AVE Toronto, Ontario – $ 569,900
Elegant Exquisite Detached 2-Storey Home.This One Has All The Bells+Whistles!Totally Renovated From Top To Bottom,New Roof,Kitchen,Flrs,Border …
E2809108 – M1J – 137 CONN SMYTHE DR Toronto, Ontario – $ 419,900
Freehold Townhome Only 7 Years Old Very Clean Well Maintained Close To Walmart,School & 24 Hrs Bus. Fantastic …
W2759119 – M9B – 364 THE EAST MALL Toronto, Ontario – $ 259,000
Price Change. Jan 11: $ 259,000 Nov 13: $ 269,000 Oct 10: $ 278,800
Excellent Etobicoke Location! Spacious 4+1 Bdrm, 2 Storey Townhouse. Approx 1500 Sq.Ft, Bright South View, Brand New Hardwood On Main Floor, Steps To …
W2801591 – M8Y – 16 ALDGATE AVE Toronto, Ontario – $ 699,900
Price Change. Jan 11: $ 699,900 Dec 18: $ 729,900
Nicely Renovated Home, Perfact For One Or Two Families, Large Basement Apartment With Seperate Entrance, Enclosed …
W2808374 – M9L – 57 HUSBAND DR Toronto, Ontario – $ 389,900
Spacious 3 Bedroom Bungalow With 3 Separate Entrances. Deep 149 Foot Lot. Great Rowntree Mills Neighborhood. Original Owner Home. Hardwood Floors Under …
W2808405 – M8X – 10 KINGSMILL RD Toronto, Ontario – $ 2,399,000
This Stately & Elegant Home Located In The Heart Of The Kingsway. Fabulous Addition On The Back Of The House. Tastefully Restored To The Highest …
W2808495 – M9N – 127 JOHN ST Toronto, Ontario – $ 849,890
Luxurious Executive Home In Sought After Weston Village. Breathless Interior, Spacious Sun Filled Rooms, Soaring 9 Ft Ceilings For Main Floor And 2nd …
W2808514 – M9W – 179 JEFFCOAT DR Toronto, Ontario – $ 519,900
Renovated From Top To Bottom!! 3 Bdrm Detached Raised-Bunglow With Prof Finished Bsmt, Can Be Rented For Xtra Income. All New-Ss Appliances,Hardwood …
W2808543 – M3J – 70 HAYNES AVE Toronto, Ontario – $ 639,000
Newly Built Home On A Highly Demanded Street, 5 Houses From York Campus. Great For Family Or Investors. Walk To University, New Subway And All Campus …
W2808579 – M9W – 112 TANDRIDGE CRES Toronto, Ontario – $ 610,000
Rare Find! Huge Spacious 3 Bedroom Bungalow With Separate Entrance To Totally Finished Basement. Located On A Large Private Lot Backing Onto Vacant …
W2808603 – M9W – 44 STAVELY CRES Toronto, Ontario – $ 379,000
** Great Location! ** Closet To All Amenities ** Waiting …
W2808623 – – $ 79,900
Property Sold As Is ,As Per Schedule A .Seller s Schedules A & B To Be Attached To All Offers.All Measurements,Taxes,Maintenance Fees & Lot Sizes …
W2808634 – M4V – 26 GLENVALLEY DR Toronto, Ontario – $ 349,900
This Is The One You Have Been Waiting For! Detached 3-Bedrm Updated 2-Storey,Thousands Spent,Crown Mouldings,Updated Windows,New Sliding Glass …
W2808678 – M9C – 364 THE EAST MALL Toronto, Ontario – $ 259,900
*2 * S T O R E Y * T O W N H O U S E * Huge 3 Bedroom/3 Bathroom Townhouse In Great Complex! Renovated Kitchen And Bathrooms! Full Laundry Room And Large …
W2808684 – M9W – 117 JEFFCOAT DR Toronto, Ontario – $ 419,900
Spacious Principal Rooms. Shows Very Clean And Well Kept. Pride Of Ownership. Lots Of Natural Light. Finished Basement With 2 Bedrooms, Washroom, A …
W2808690 – M9N – 39 WEST OAK CRES Toronto, Ontario – $ 539,900
Perfect For An Investor Or First Time Buyers. This Home Is Extensively Renovated And Features 3 Beautiful Units With Modern Kitchens, 3 Bathrooms, 3 …
W2808701 – M9W – 17 STALLION PL Toronto, Ontario – $ 439,000
Spectacular 3 Bedroom Freehold End Unit Townhouse That Is Like A Semi. 25 Ft Wide Lot With Only One Attached Neighbour. Featuring Stamped Concrete Front …
W2808722 – M9R – 137 KINGSVIEW BLVD Toronto, Ontario – $ 619,900
Completely Renovated From Top To Bottom W/Finest Materials & Finishes; All New (2013) Kitchen W/Granite Countertop,Marble Backsplash,All New S/S …
W2808731 – M9B – 364 THE EAST MALL Toronto, Ontario – $ 234,900
** Renovated And Updated, Large Spacious 2-Storey 3+1 Bedroom Townhome With Huge Balcony In Fabulous Central Etobicoke …
W2808772 – M6N – 21 LAVENDER RD Toronto, Ontario – $ 588,800
Beautifully Renovated Detached Bungalow- 2 Bedrooms On Main One In Basement- 2/ 4 Piece Baths- 2 Laundry Facilities- R/I Kitchen In Bsmt- Easily …
W2808841 – M9A – 11 NORTH DR Toronto, Ontario – $ 1,999,800
A Great Opportunity To Own On Etobicoke s Prestigious North Drive. An Amazing Home For Renovators Or Builders. Plans & Drawings Are Available For …
W2808846 – M9P – 197 LA ROSE AVE Toronto, Ontario – $ 698,000
The Classics. Stunning Open Concept Three Bedroom Townhome. Walk-Out To Deck. Formal Dining Room. Master With Lavish Ensuite & Walk-In Closet. Finished …
W2809026 – M6B – 236 GLEN PARK AVE Toronto, Ontario – $ 1,425,000
Brand New Luxury Custom Built Home Located Within A 5 Minute Walk To Glencairn Subway Station With Easy Access To 401. This Wonderful 4-Bedroom, 4-Bath, …
W2809041 – M9B – 366 THE EAST MALL Toronto, Ontario – $ 249,900
Large Condo In Central Etobicoke. Ready To Move In With Many Upgrades: New Laminate Flooring, New Kitchen, 2 Reno d Bathrooms, New Electrical Panel, …
W2809056 – M3J – 35 FOUR WINDS DR Toronto, Ontario – $ 319,900
Amazing Renovations-Looks Like Brand New Open Concept Property, New Hardwood Floors And Laminate. Brand New Kitchen With Granite Countertops, Pot Lights, …
W2809072 – M3L – 40 PETERDALE RD Toronto, Ontario – $ 484,900
Beautiful 2 Storey Home In Move-In Condition, Finished Basement, Cold Room Switched To Laundry Room, Walking …
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