It is recommended to all purchasers to focus in on the adjustment section of your new home agreement; the purchase price is not necessarily the price you will end up paying. Most new home agreements contain a provision that basically states that on top of your purchase price there will be additional costs. For example, most new home agreements carries a provision that sat that the HST is included in the purchase price. However the purchaser will agree to transfer that HST rebate to the vendor builder and if for some reason they don’t qualify for that rebate, then an amount equal to the rebate will be added to the purchase price. Secondly, in order to maintain and develop the new subdivisions, quite often their development charges and education are levied by the municipality and those are generally in addition to the price that you have agreed to. Also, there are costs associated with hooking up of utility meters, hydro, gas, water and those are again on top of your purchase price. Tree planting, paving your driveway, and other additions that are commonly believed to be included in the purchase price but are actually an additional cost. It’s important for any prospective purchaser to have their solicitor review the agreement before so there are not any surprises at the end of closing involving these addition costs.
If you have any questions, please contact us at SBMB law or visit our website.