Hi,
This is my situation. I put 20K down(advance/hold) for a semi-detached house(brand new house from builder) in Mississauga(closing to be in Feb 2008).
I no longer want this property. What options do I have in getting rid of it?
I would like to get rid of it either before closing or at closing(I don't want to close on it as this would mean I would need to get a second mortgage.)
The change is because initially I had thought of selling the condo I am in and moving to this house. But now I just want to continue with the condo.
I am sure there are other people who have been faced with a similar situation. Can someone give me some ideas?
Thanks.
Where in Mississauga you have booked this house. One of my friend is looking to move in around that time.
10th line and Thomas (Winston Churchill/Brittania area)
Hi Yellowknife,
The answer to your questions are in your contract that you signed with the builder. Usually new home builder's contract is totally one sided...loaded in their favour. In most contracts, assignment of sale is not permitted..meaning, you may still have to close the purchase of home prior selling it. This would involve paying land transfer tax as well. Check with the builder if he would allow you to transfer prior closing (assigning the sale to another buyer). He may allow you to do so if he has some inventory left. Of course, he will ask you for some money to do so.
Selling it prior to closing in some contracts is not permitted and illegal. Therefore, read you contract thoroughly and consult a lawyer to find out your options.
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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
Let me know after you have found the answer to the suggestions mentioned by Rajeev.
Quote:
Originally posted by Rajeev Narula
Hi Yellowknife,
The answer to your questions are in your contract that you signed with the builder. Usually new home builder's contract is totally one sided...loaded in their favour. In most contracts, assignment of sale is not permitted..meaning, you may still have to close the purchase of home prior selling it. This would involve paying land transfer tax as well. Check with the builder if he would allow you to transfer prior closing (assigning the sale to another buyer). He may allow you to do so if he has some inventory left. Of course, he will ask you for some money to do so.
Selling it prior to closing in some contracts is not permitted and illegal. Therefore, read you contract thoroughly and consult a lawyer to find out your options.
Sometime ago we had a CD from Vancouver wherein the builder pulled out of the contract without any serious consequences (until then)....seems to be a very unfair practise wherein the builder can back out anytime and not the buyer...each party should have equal opportunity. It is very sad that Canada being a highly mature society and inspite of numerous checks in place, the common man still invariably gets the 'RAW' deal while dealing with 'corporations' - not limited to - but more frequently - in real estate.
Would be interesting to know if the real estate agents are in any way better position to deal with builders on behalf of the buyer to negotiate the terms of contract.
Hiren
Location: God's own country
Posted on: 05-06-07 16:30:05
Realtors deal with second hand homes.
For new house buyers, the only person who will explain things to you is the Salesperson at Site (Payed by the Builder). Also the Builder is the one who drafts the contract and so it will be heavily biased towards the builder.
The buyer will have to find his own lawyer and mortgage professional (the sales person at site will also recommend). Hopefully these perofessionals can warn you about potential wrongs that the builers can do.
As rajeev said, your contarct is your bible and you should look closely into that to see what it says.
The best option (if the property has appricated) is to close the sale and then sell it. When you sell it, then you will have to hire a realtor to sell it (so you will lose 5% of the property value as fees to the realtor) or you wil have to sell it privately. Terion (home builder's warrenty) will be in effect and hence you will be able to sell it very smoothly.
Hope this helps.
TK A
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