Ralph Evans is writing a guide to buying pre-construction condos in Toronto. Here is a preview…
It is a good idea to be aware of where in the whole process the developer is at. Has the project gotten all necessary approvals? Is this early in the sales process, perhaps construction will not even begin for a year or more. maybe construction is already underway or nearly complete.
The level of certainty of completion increases as time goes along and each milestone is completed. Expect the developer to have to sell 75% to 80% of the units in the building before they have the financial backing to fund the project. This could take longer to complete in a slow market.
Some condo projects fail before they start. The developer will have the right to cancel the project, with buyers getting their deposits refunded. This might not be so good for the buyer, if they have had their money tied-up with a project in a rising market, where having to buy a replacement suite in a different condo project will now cost substantially more.