Hi,

I am having a doubt about a certain process that I was unware of while I bought my condominium ? I just need to get some clarification on the same ?

Here is what I was unaware off :

I got mortgage and just got possession for the condominum. The problem I noticed was that I was paying more cash as the closing did not happen for the condo. The closing is expected to happen in January 2006 but I have not recieved any confirmed letter from the builder. My lawyers said that the mortgage with kick in once the closing happens. Now as I will be in the condo now as resident the builder has asked for rent till the closing happens. I was unware of the fact that the rent will be not deducted from the mortgage I got from the bank. Why do we have pay rent when I have already put a down payment for the house ? Can someone clear this for me as I feel I am getting ripped off till the closing ? Is there a compensation for something like this ?

Thanks in advance

AMS

Hi, am i right in saying that this is new condo? If so I believe that you have a ghost mortgage (that's a term some people call this.). Basicaly the builder and city need to work out a few things before anyone other than the builder can own a unit. Until then you have to rent from the builder.


ravi

Thanks Ravi,

Yes it is new condo. If this is a ghost mortgage then am I not paying more for the place as a renter than the mortgage. Is this a common thing cause looks like the law is more towards the builder. if have paid about 20% down payment then I should not be renting this condominium. I should be allowed to stay in it and just pay the power and gas and whatever for that period. Why does it so much time to register the condo ? To me it looks like the city and the buidler make money during this time.

Thanks

AMS

This is very common and I believe that all new condos are sold like this.

I agree with what you're saying but the system works in favour of city and builder. :-(

This condo building has to be registered with the city. After that, the units can have your name on the title.

Right said Ravi, this is a ghost mortgage and an Occupancy Fee.

Occupancy Date
The date is established by builder and defines when you must take occupancy of your home.

Occupancy Fee
The monthly payment (just like rent), payable to you, for living in your home prior to final closing. It consists of 3 components:

Estimated Monthly Maintenance Fee
Estimated Monthly Realty Taxes
Estimated Monthly Interest Component

In order to register the building with the City, the building needs to be fully functional as per the rules and regulations of the City. The buyers move into the new building in stages starting from the ground to higher floors; as the building nears its completion. So a buyers on the highest floor pays out least amount of the rent/ghost mortgage.

Regards,

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Quote:

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Orginally posted by amit kalia
Occupancy Fee
The monthly payment (just like rent), payable to you, for living in your home prior to final closing. It consists of 3 components:

Estimated Monthly Maintenance Fee
Estimated Monthly Realty Taxes
Estimated Monthly Interest Component

In order to register the building with the City, the building needs to be fully functional as per the rules and regulations of the City. The buyers move into the new building in stages starting from the ground to higher floors; as the building nears its completion. So a buyers on the highest floor pays out least amount of the rent/ghost mortgage.

Regards,

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SS
Reiki Grand Master

The above so called ghost mortgage works for most of the buildings in GTA.

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/