HELP: Can the closing on AGREEMENT OF PURCHASE with a property developer be changed?

[alanbrenton]

Sorry if I double posted on the Personal Finance forum and the Home & Garden forum but I need serious advice.

I've gone through a sample AGREEMENT OF PURCHASE AND SALE for use in real estate transactions in Canada and did a word search on "closing" and found that the closing date, so long as the buyer doesn't complain, can most likely be advanced ahead of the July 1, 2010 HST (harmonization) tax? My wife has not written her Phase 3 exam and so she cannot represent us yet. It just means commencing the mortgage, taxes, and other fees. Theses costs, spread over three months, is peanuts compared to the additional $40-50k for the 8% PST.

bytheowner.com/files/offer_to_purchase_ns.doc

When dealing with established property developers in Ontario, is it actually possible to advance the closing date on the AGREEMENT OF PURCHASE AND SALE document? Or is it a one date fits all (home buyers) especially because construction has not begun for the entire phase? I briefly asked the sales representative and she mentioned that the 8% PST is a subject of contention because the closing date will be in September 2010.

There are only a few lots left and we will be meeting the sales representative tomorrow and we will probably have to force this issue on closing date as I cannot afford to pay another 8% (this will eat up the 20% d/p).

I would appreciate if any of you can advise me whether it is possible to change the closing date. The builder is ROSEHAVEN. I am okay paying the mortgage, insurance, and other fees 2-3 months in advance if I can save on the 8% tax.

Thanks so much for your help on this serious matter.

[budfrogs]

Not sure about your question. But there are some things to watch out for if you are taking possession before it is finished:

If you take possession early you will also have the liability. If someone gets hurts working on your house it becomes your problem!

Also you have nothing to hold over the builder to get things finished on-time and correct! You have paid for it before your final examination.

Also a LOT of other people will be wanting the same as you! Get in before July 1st deadline. The builders are going to be going insane trying to make that date.

I believe most builders have tonnes of leaway on the closing date written into their contracts.

I would try to get something in the contract about the HST. And maybe try to split it or something. It does suck buying an effected house just after the deadline! The builders didn't get the tax savings of HST and you have to pay the PST portion of the HST so the government is double dipping for the first little bit.

[gman]

Sorry if I double posted on the Personal Finance forum and the Home & Garden forum but I need serious advice.

I've gone through a sample AGREEMENT OF PURCHASE AND SALE for use in real estate transactions in Canada and did a word search on "closing" and found that the closing date, so long as the buyer doesn't complain, can most likely be advanced ahead of the July 1, 2010 HST (harmonization) tax? My wife has not written her Phase 3 exam and so she cannot represent us yet. It just means commencing the mortgage, taxes, and other fees. Theses costs, spread over three months, is peanuts compared to the additional $40-50k for the 8% PST.

bytheowner.com/files/offer_to_purchase_ns.doc

When dealing with established property developers in Ontario, is it actually possible to advance the closing date on the AGREEMENT OF PURCHASE AND SALE document? Or is it a one date fits all (home buyers) especially because construction has not begun for the entire phase? I briefly asked the sales representative and she mentioned that the 8% PST is a subject of contention because the closing date will be in September 2010.

There are only a few lots left and we will be meeting the sales representative tomorrow and we will probably have to force this issue on closing date as I cannot afford to pay another 8% (this will eat up the 20% d/p).

I would appreciate if any of you can advise me whether it is possible to change the closing date. The builder is ROSEHAVEN. I am okay paying the mortgage, insurance, and other fees 2-3 months in advance if I can save on the 8% tax.

Thanks so much for your help on this serious matter.

If both side agrees, you can change the closing date but if the house is not built by the closing date, the closing date will be pushed back. In the agreement, especially the one drafted by the builder, it allows the builder to push back the closing date when they cannot finish it on time.

You need to read the fine print to check how many times they can do that and how many days they can do that in each delay.

When I bought my house, my lawyer amended the agreement so that the builder could push back once and at most 90 days (that was only one of the few things my lawyer amended the agreement). The builder lawyer agreed and signed back.

The builder wants to close ASAP because they want your money in their pocket. That is if they can close it tomorrow, they will. However, they may not be able to build it on time. The chance is they can try to build it on time but they will make sure the agreement will cover their back end if they have to delay.

[alanbrenton]

Thanks Budfrogs and Gman.

Any other advice is most welcome but we are prepared to walk away on this purchase.

[Samwfive]

$40-50K in 2-3mth...ouch.

Slight off-topic:

So what does it take to "close"? I suppose all utiities, plumbing, electrical, heating, foundation, sewers, insulation, drywall, etc. ??

Can the OP go to the extreme of closing with all mentioned and let the finishing be the last?

I leaning towards no....legality..?