If you are interested in buying a condo in Toronto as a first time home buyer or a real estate investor, and are buying pre-construction or an assignment, then “condo registration” is important for you. What is condo registration all about, exactly?
So you bought a condo pre-build. Now that the building is nearing completion and you are able to move into your unit, there is one major thing you will be most interested in: when the condo gets registered, as this means the difference between occupancy and ownership. But wait, I own my unit! Well, yes you do. But high-rise condos often allow residents to move in before the entire structure is 100% complete. Condominiums typically begin the approval process of registration once the first suite is occupied. But it is important to remember that this process can take close to six months. What this means to you is that, until the condo is registered, you are an “interim occupant”.
After moving in, an occupancy fee must be paid to the developer until the condominium corporation is officially registered. The fee relates to the interest portion of the balance owing on the purchase price (usually payable on the registration date), which is based on a one-year mortgage rate of the Bank of Canada. Also included are the unit’s estimated maintenance fees, plus its portion of the estimated real estate taxes. Basically, this is a lot like rent… though you cannot apply it toward your mortgage. Your mortgage begins once the title is transferred to you. Just like when you buy a house, title is transferred when funds are received. So when the condo is registered, title is transferred to you, and your mortgage begins (ie: builder is paid).
If you are buying a pre-construction condo in Toronto, you will want to know about the condo registration, as your mortgage will be tied to it. A good real estate professional (like us!) will help guide you through all the steps of this process. We can help. Call us today. 416-222-0025.
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