OLD CONDO Advantages – It’s there!You can move in within a couple of months.You know what it looks like.
You know exactly what your mortgage and maintenance payments will be.Disadvantages – Unless you want to spend money on a reno, you have to go with the way it’s already built.You have to take a long hard look at the disclosure documents, particularly the ones that deal with the reserve fund and reserve study.
Many condos underestimate their future capital needs and this often leads to a special charge on unit owners down the line.Older condos tend to have problems or upcoming repairs.Elevators are one of the biggest problems – they’re critical and require constant maintenance and regular replacement NEW CONDO Advantages – It’s going to be brand new!
You can choose the finishes!Disadvantages – You have no idea when you’re going to move in.Construction delays are common and your closing date could be pushed back by months.
You probably won’t be sure about your maintenance charges before you move in.
The major difference when buying a prereconstruction condo is the “E&OE” clause in the sales agreement.This is the Errors and Omissions Excepted clause.It gives the builder the right to make ANY kind of change to your condo and they don’t need your permission.
You can sign for a condo with 10 foot ceilings, but the builder decided or the City required them to make each floor 1 foot lower to add more units.You could lose a closet and there’s nothing you can do.These three letters are usually present in legal invoices .