Help/Questions on closing on a new lot/home (preconstruction)

[alanbrenton]

If my wife and I have set our eyes on a particular lot still under preconstruction, what requirements will the builder require of us to close on a property? Will a downpayment/earnest money usually be enough in this case?

Also, if in case we decide to transfer/sell the right to the property, how should we go about making the downpayment/earnest money (i.e. under what name) so that we don't run into trouble down the road? We don't own any corporations and are just regular income earners.

Many thanks!

[Tical]

Typically a deposit of $10,000 - $50,000 is required, over and above your downpayment. This is just added insurance so you don't walk away.

As for transferring -- best is to just not do it. Many builders will force you to forfeit your deposit if you dont want to continue with the purchase, and will not allow transfers.

[alanbrenton]

Typically a deposit of $10,000 - $50,000 is required, over and above your downpayment. This is just added insurance so you don't walk away.

As for transferring -- best is to just not do it. Many builders will force you to forfeit your deposit if you dont want to continue with the purchase, and will not allow transfers.

Thanks Tical. The deposit sounds reasonable. Now my only concern is the HST harmonization tax to take effect on July 1, 2010. I'm not sure what transactions should have deemed consummated by then to avoid the hefty 8% tax.