Pre-con closing costs

May 10th, 2021 12:13 pm

#1

Moza20 [OP]: Newbie; Jan 13, 2021; 10 posts

May 10th, 2021 12:13 pm

Hi

I have received soa for pre-con townhouse. As per PA, development charges were capped to 5k but in SOA, they included 5k for park levy and 4K for boulevard charges. Are these charges separate from development charges? I noticed that they mentioned development charges related to land are capped at 5k.

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May 11th, 2021 2:39 am

#2

ambrokeyo: Newbie; Oct 10, 2020; 56 posts; 28 upvotes

May 11th, 2021 2:39 am

Review it with your lawyer but it's likely that only a specific kind of Levy was "capped". All in the wording.

May 11th, 2021 7:37 am

#3

JayLove06: Deal Guru; Feb 29, 2008; 14595 posts; 10833 upvotes

May 11th, 2021 7:37 am

This is what they do. Speak with your lawyer but it looks like typical builder trickery.

+1

May 11th, 2021 8:58 am

#4

Toukolou: Deal Fanatic; Dec 4, 2009; 5223 posts; 1566 upvotes

May 11th, 2021 8:58 am

Lawyer should have caught the wording when he/she reviewed the PA. There likely wasn't any way these additional charges could have been mitigated (what with people lining up around the corner for a chance to buy) but at least you would have known another money bomb was coming your way.

"I'm a bit upset. I've been grab by the back without any alert and lubrification"
Lucky

+1

May 11th, 2021 9:19 am

#5

RichmondCA: Deal Addict; Mar 2, 2017; 1713 posts; 3037 upvotes; Toronto/Markham

May 11th, 2021 9:19 am

Not to be a monday morning quarterback, but you generally can't rely on your average lawyer for pre con, if they don't specialize in it expect surprises. Never fails.

Realtor, Investor, CPA

+1

May 11th, 2021 9:57 am

#6

SargeJ: Jr. Member; Jan 16, 2021; 100 posts; 30 upvotes

May 11th, 2021 9:57 am

with people lining up, most of these precon brokers would not budge.. even with lawyer comments, they will likely say no as the next guy is willing to buy with no conditions.

+2

May 11th, 2021 3:54 pm

#7

JayLove06: Deal Guru; Feb 29, 2008; 14595 posts; 10833 upvotes

May 11th, 2021 3:54 pm

SargeJ wrote: ↑ with people lining up, most of these precon brokers would not budge.. even with lawyer comments, they will likely say no as the next guy is willing to buy with no conditions.

This is very true. Why budge when they have a bunch of buyers who don’t even ask for any revisions because they don’t even have their lawyers review the contract.

+3