Beware of Hidden Closing Costs on New Condos

When purchasing a new condo in Toronto, buyers should be aware of the hidden closing costs of the condo.

Do not sign a sales contract without your buyer’s agent

Your own buyers agent should be able to point out some of the additional closing costs hidden in the fine print of your new Toronto condo sales contract.

Consult the contract of sale with your Lawyer

In Ontario, buyers of new Toronto condominiums have a 10-day cooling off period when signing a contract, after which the agreement becomes legally final and binding if you do not inform the builder/developer that you wish to terminate the contract.

You should use this period to have your real estate attorney verify your sales contract and explain any additional closing costs.

Some of the most common hidden closing costs are:

Tarion New Home Warranty

Each The new Toronto Condo comes with a new home warranty issued by the Tarion Home Warranty Program.

The builder/developer passes the cost of this warranty to you, the purchaser.

EducationLevies

Ontario school boards levy a tax on each new condominium built for new schools required as a result of new developments.

Municipal Fees

The City of Toronto will also collect a tax on each new Toronto Condo unit built for new parks and such.

Municipal sewer connections

There will be a municipal sewer connection charge that the builder/developer will pass on to you.

Electric meter connection

The local electric company will charge for the connection of an electric meter that the builder will provide to you.

Gas meter connection

If your new Toronto condominium building has individual gas heat for each unit, the local gas utility company will charge a gas meter connection fee. The builder will pass it to you.

City of Toronto Transit Pass

The City of Toronto now requires builders to include a Metro Toronto Transit Pass for a period of one year for each purchaser of a new Condominium unit in Toronto. You can be sure that the builder will pass on this additional cost to you.

These are just a few of the additional hidden closing costs, but there are likely others hidden in the fine print of your new Toronto condo sales contract.

They can and will add thousands of dollars to your closing day costs.

Your sales contract won’t necessarily specify a dollar figure for each of these costs, as they could change by the time you close.

Once you have an idea of ​​what these are, you can ask your buyers agent to go back to the builder/developer and negotiate a cap on these costs that allows you to at least budget for them.

This will ensure that there are no unpleasant surprises when the closing date for your new Toronto condo arrives.