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Rough idea on closing costs for a new build home?

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  • Aug 18th, 2015 9:46 am
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Deal Addict
Dec 8, 2009
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I assume you already bought house, can you please list fees that new buyer should expect when closing?
mmhassa2 wrote: That sounds much better, so that cap is put just for the difference. Anything else Im missing in my list? Another question which of these fees can builders usually waive...I know not all builders will but which are more likely than other.
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Nov 14, 2013
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Brampton, Ontario
echo_jey wrote: I had no idea what the hell is this cap when I signed agreement and today checked the agreement and its $3500. Is it too much? I didn't know I have to hire lawyer for just buying new home. Will they usually charge cap amount at the closing ? I'm with Greenpark and closing on Nov 2016 in Brampton.
Depending on the builder you can make them put in paper the cap and you sign it so you won't see the "sudden extra" charges at closing. Your closing costs varies with locations, size of lot and type of house as well as builder (on what they add).

The caps is usually developmental charges, charges to beautify landscape etc. You should get a lawyer at least 6 weeks before you close. I had David Cohen (he is in Brampton) and he was super anal about everything.
Newbie
Aug 27, 2006
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echo_jey wrote: I had no idea what the hell is this cap when I signed agreement and today checked the agreement and its $3500. Is it too much? I didn't know I have to hire lawyer for just buying new home. Will they usually charge cap amount at the closing ? I'm with Greenpark and closing on Nov 2016 in Brampton.

The extra development charge that you MIGHT have to pay is the diff between the year you sign the agreement and the current closing year's rate.

http://www.brampton.ca/EN/Business/plan ... Rates.aspx
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Jul 30, 2007
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If the builder wants to charge you the DC & Levy on closing. It is usually the increment increase in the DC & Levy from the date you signed the agreement and the date of the building permit is applied. During this time span, you could be looking at about 6 months of open time slot.
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Aug 22, 2011
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mmhassa2 wrote: I know there are various online calculators but haven't really found one that will give closing costs specifically for a new build. Like builder's closing costs etc. Would love for some help in what to expect basically purchasing a new build home.

-Not 1st time home owners
-New build home in ajax for roughly around $550K including HST
-20% down

If anymore info is needed just reply to this post and I will update my post.
New construction build (you probably want all new appliances); ranging from $5000-$10K.
Deal Addict
Dec 8, 2009
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Thanks for the info, so even if I didn't use lawyer now in the first stage not a big deal? how is his fee?
Dsidhu wrote: Depending on the builder you can make them put in paper the cap and you sign it so you won't see the "sudden extra" charges at closing. Your closing costs varies with locations, size of lot and type of house as well as builder (on what they add).

The caps is usually developmental charges, charges to beautify landscape etc. You should get a lawyer at least 6 weeks before you close. I had David Cohen (he is in Brampton) and he was super anal about everything.
Deal Addict
Dec 8, 2009
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loksau wrote: The extra development charge that you MIGHT have to pay is the diff between the year you sign the agreement and the current closing year's rate.

http://www.brampton.ca/EN/Business/plan ... Rates.aspx
Thanks, so I have to take screen shot of this and then I have to compare with 2016 rate (closing on Nov 2016)?? Is $3500 too much for cap ( sales agent told me he will put $3500 for cap and I agreed without much knowing what the hell it was)?
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Dec 8, 2009
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booblehead wrote: If the builder wants to charge you the DC & Levy on closing. It is usually the increment increase in the DC & Levy from the date you signed the agreement and the date of the building permit is applied. During this time span, you could be looking at about 6 months of open time slot.
Thanks, Who determine this cap amount ? builder? is this cap amount negotiable? then why we need lawyer to negotiate? what I agreed was $3500. is it too much?
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Jul 30, 2007
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Yup. You propose. Bthe builder agrees or disagree. Then you and builder can compromise or u can stay firm.

Cap it at $1750 + hst (incl tarion warranty enrolment)
Deal Addict
Dec 8, 2009
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booblehead wrote: Yup. You propose. Bthe builder agrees or disagree. Then you and builder can compromise or u can stay firm.

Cap it at $1750 + hst (incl tarion warranty enrolment)
I have already signed last month. still I can adjust the cap?
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Dec 4, 2009
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1.5-2% purchase price, to be on the safe side. Btw, this is a 4 year old thread.
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echo_jey wrote: I have already signed last month. still I can adjust the cap?
Usually, yes.

It's called amendment (to p&s agreement).
Deal Addict
Nov 6, 2009
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Can you advise about this lawyers fees?
Dsidhu wrote: Depending on the builder you can make them put in paper the cap and you sign it so you won't see the "sudden extra" charges at closing. Your closing costs varies with locations, size of lot and type of house as well as builder (on what they add).

The caps is usually developmental charges, charges to beautify landscape etc. You should get a lawyer at least 6 weeks before you close. I had David Cohen (he is in Brampton) and he was super anal about everything.
Deal Addict
Nov 6, 2009
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echo_jey wrote: Did you find RFD recommended Lawyer? if so pls pass info.
It wasn't rfd recommended lawyer ended up paying about $1500 for closing fees.
Banned
Jul 2, 2015
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sonajatt wrote: It wasn't rfd recommended lawyer ended up paying about $1500 for closing fees.
Yeah that's a standard price thesedays. For title search and closing etc by RE lawyer. They don't really do much, as its all standardised, but you still have to go through them, easy money for them :(
Deal Addict
Dec 8, 2009
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sonajatt wrote: It wasn't rfd recommended lawyer ended up paying about $1500 for closing fees.
$1500 is lawyer fee or it includes other fee as well?
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echo_jey wrote: $1500 is lawyer fee or it includes other fee as well?
that's too high. Typically, $1000 fee, incl. disbursement (excl. any title protection insurance) is the general consensus I see.

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