Real Estate

Cashback on precon condo

  • Last Updated:
  • Apr 7th, 2019 6:10 pm
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[OP]
Deal Fanatic
Feb 22, 2011
5971 posts
5711 upvotes
Toronto

Cashback on precon condo

I know a lot of RE agents offer 1% cash back when you buy a resale, does this also apply for any who do precon?
6 replies
Deal Addict
Nov 22, 2004
1402 posts
385 upvotes
Yes, but the amount varies depending upon what the builder is giving to the agents and what you've negotiated with the agent.
Heatware: 9-0-0
Realtor @ Royal LePage United Realty
Deal Addict
Mar 27, 2004
3305 posts
691 upvotes
Toronto
Depends on what the builder offers. 2-4% is what they normally pay.
Cash Rebate Realtor
Full-time & Full Service
Homelife Bayview
Deal Addict
Sep 12, 2006
1463 posts
383 upvotes
To piggyback on this thread, when would the cash back be paid in a pre-con condo situation? I assume at closing time of the property?
Deal Addict
Nov 22, 2004
1402 posts
385 upvotes
Marubozu wrote:
Apr 6th, 2019 5:30 pm
To piggyback on this thread, when would the cash back be paid in a pre-con condo situation? I assume at closing time of the property?
Different builders have different payout schedules because depending upon when you book a pre-con condo, it could be several years before you get occupancy/closing. For ex: if a builder is giving 4%, then the payout could be broken down as 1% 60 days after firm sale, 2% after 1yr, 1% at the time of condo closing.

For rebate purposes, it'll depend on what was agreed with the agent. If I'm giving a rebate, then I'd keep the same proportion at each time. For ex: If I'm giving 20% back, then I'd give 20% of the 1% when I get the first payment, then 20% of the 2% after 1yr, then 20% of 1% at the time of condo closing.

For freehold properties, in most scenarios the agents get paid after closing, so the cashback would generally be at that point as well.
Heatware: 9-0-0
Realtor @ Royal LePage United Realty
Jr. Member
Jul 2, 2018
145 posts
83 upvotes
GTA
mazerbeaner wrote:
Apr 6th, 2019 1:01 pm
I know a lot of RE agents offer 1% cash back when you buy a resale, does this also apply for any who do precon?
For precon condos it will definitely apply. Realtors are even doing rebates for lease clients now.
Cash Back Rebate Realtor
Deal Addict
Mar 27, 2004
3305 posts
691 upvotes
Toronto
Builders usually pay 1 to 2% within the first year, and the balance at closing.
Cash Rebate Realtor
Full-time & Full Service
Homelife Bayview

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