Buying off-plan: what does it mean?

Buying a home off plan can allow you to make personalized choices and avoid some of the problems of aging buildings. That said, this type of project requires good preparation to visualize the result, a meticulous examination of construction contracts, but also an inspection as for old buildings. Explanations.

Specific requests

Jean-Pierre Charbonneau, housing consultant with CAA-Quebec, suggests first determining your requirements precisely: area, number and type of rooms, space layout, garage, heated floor, fireplace, air conditioning, orientation in relation to the sun… Buying off plan can give you the opportunity to make tailor-made choices, but you have to think about every detail, such as floor materials, type of kitchen cabinets, counters, storage, and additional costs. related. “Don’t forget that any addition to the plan risks incurring exorbitant costs since you are taking the builder out of his comfort zone,” says Mr. Charbonneau.

Whether you are planning to buy a condo or a house, ask for 3D floor plans giving perspectives of your furnished rooms to better visualize your project. “Ask the builder for details in writing on his soundproofing work in common areas: cutting walls, ceilings and floors (architectural details),” continues Mr. Charbonneau. In addition, new homes must comply with building codes and the latest energy efficiency standards.

Explore the neighborhood

In addition to the desired services near your future residence (public transport, grocery store, schools, hospital, etc.), several criteria must be considered, such as the existing environment and potential upcoming changes (new construction, landscaping, parking lots) . In a developing sector, check the deadlines for the services that interest you. For example, if the primary school you need for your child takes five years to come to fruition, it will not meet your needs.

Check the builder’s CV

Once your needs have been defined and the corresponding project has been chosen, several verifications are necessary. “The first thing to do is to ensure that the construction company is accredited with GCR [Garantie de construction résidentielle] because that’s what will entitle you to legal protection under the warranty plan for new residential buildings,” says François-William Simard, Vice-President, Communications and Partner Relations, at GCR. “If the promoter is not accredited when the contract is signed, the protections cannot apply. »

You can easily confirm on the GCR directory that the builder is registered and that the project you are interested in is registered in the list, in addition to checking the promoter’s background. “It’s a very useful tool that can help you make a choice. You must also check with the RBQ [Régie du bâtiment du Québec] that he has a relevant contractor’s license to be able to build a new home. It’s also always good to ask for references, continues François-William Simard. It is very important that everything be put in writing, including deadlines and any changes. »

Read, understand and record everything

Sylvianne Fréchette, notary and legal popularizer at Éducaloi, warns about three major issues.

The preliminary contract

The contract that is signed with the promoter or the builder, and which is called the promise to purchase in the preliminary contract, should not be taken lightly. “It’s a contract and if you sign it, you agree to buy the condo or the house. This preliminary contract has protections that we do not have in all promises to purchase. You have to take the time to read it completely, to fully understand it,” insists Sylvianne Fréchette, adding that you should not hesitate to contact a lawyer if any clauses seem ambiguous to you.

Mandatory clauses in the preliminary contract

Certain clauses are mandatory in the preliminary contracts when buying off plan. First, the right of withdrawal, that is to say the right to withdraw because you have changed your mind. “It is a mandatory deadline of a minimum of 10 days from the signing of the preliminary contract or 10 days after receipt of the information note, if applicable. This period allows you to regain knowledge of the contract and to withdraw. However, the contractor may charge compensation for withdrawing, which may not exceed 0.5% of the agreed sale price. » Also, the reimbursement of the deposit must be clearly stipulated in the contract; if the sale does not take place, you can recover it.

You must also carefully check the price clause, because the sale of a new home is taxable. So make sure taxes are included or need to be added as the difference is substantial. Also check if the price is revisable. If so, check the terms, because if it’s one-sided on the contractor’s side and the prices of building materials go up, the price of the house may go up as well.

The briefing note

To be as informed as possible, you must read the information notice which is mandatory when selling a condo or houses with common areas. “In this note, the development plans must be well described as well as the annual budget forecasts related to the cost of maintenance of these common areas,” specifies Sylvianne Fréchette. Take note of the preliminary contract and the information note with a rested head.

Inspect before you buy, even when new

When you are given the keys to the building, you will do a pre-acceptance inspection with the contractor. It is mandatory under the regulations, but it is strongly recommended to be accompanied by a building professional. If remedial work is required, you will need to turn to the contractor and if they don’t do it, turn to GCR. “Often, we hear that since it’s new, we don’t need to inspect because GCR has done it. It is possible, but perhaps only at the start of construction at the foundation, remarks François-William Simard. A building pro will be able to detect any problems that could occur ten years later, ie after the warranty period which is five years. »

Guaranteed buildings… or not

New buildings with four private units or less are compulsorily covered by the guarantee plan, which is not the case for buildings with more units, including condo towers. This plan is then optional, at the contractor’s discretion. It is therefore essential to carry out an inspection before moving in.

A protected deposit

In most cases, you will need to pay a deposit to reserve your project. Note that the maximum protected by GCR is $50,000 for houses and condos. Any amount exceeding $50,000 is the responsibility of the contractor, who must place the money in a trust plan or another guarantee plan.

In general, the sale is concluded when the property is delivered, and it is the contractor who finances the work as it goes. If your contract stipulates that you must make disbursements, find out before signing with the Association des consommateurs pour la qualité dans la construction (ACQC).