FAQ

When you purchase a pre-sale condo or home, you are paying for a future condo or home. Pre-sales is when a developer offers the property before construction has started, the benefits include but are not limited to lower prices, better selection of units, views and floors plus perks as the "first ever buyers", pre-sales is the way most people have made money across Canada without owning anything, because they have been able to sell before closing or notary or even sell at the notary as a "flip". Pre-sales is a lot like a "IPO" in the stock market, better known as an initial public offering of an investment.

Typically, developers in Montreal ask for anywhere between $2500 and $5000 the day you purchase which is included in your down payment and 15% to 20% down over the course of a year or 18 months depending on the project, in some cases developers will ask for only 5% down but this is once construction has begun and prices are generally at market value as opposed to pre-sales prices.

Your deposit is held in a trust account until the building is completed, it is never made out to the Broker or Developer, it's always made out to the Notary in trust who holds it for you until your closing date. If for any reason the developer does not finish the building, the full amount will be returned to you from the Notary's trust account.

This is the most important question these days, why? Because you want to make sure that NOT ONLY is the development going to actually "take-off" but you want to receive a good quality product once complete and the equivalent in after-sales service. As a VIP Platinum Broker on many projects over more than 10+ years, we can guide you to pick and choose the right developments to ensure your investing in the best possible area with a reputable and experienced company/organization.

NO YOU DO NOT! And any Broker or company that asks you to pay them any form on compensation for buying in a development is misleading you, in pre-sales when purchasing a condo or home, the developer pays the Broker and we work for you, free of charge!

Once you have made a purchase and have given the developer the cheques "in-trust" for the down payment, the developer will ask you to get a "pre-approval" or "proof of funds" letter from a financial institution of your choice or the one the developer works with so that they can guarantee your unit. Please keep in mind that this is ONLY a letter and once you receive your closing date, you will be asked to re-apply for a mortgage/financing and get approved within 30 days of your purchase.