Don’t Sign That Agreement Until Your Lawyer Checks It Out – Reason 2 – New Home Contract Extras – by Daniel Bernstein

Agreements of Purchase and Sale for new homes are full of surprises. In addition to issues regarding HST, often buried in the fine print are extra costs that a purchaser may have to pay and which are not included in the purchase price such as the costs associated with the TARION warranty set out in the Ontario New Home Warranties Plan Act, the cost of connections for hydro and water meters, the costs for future development or educational levies – even those costs associated with document preparation by the builder’s lawyer. These amounts could amount to several thousands of dollars. Other costs which could be buried in the fine print could include a refundable security deposit in case of damage done to the curbs in front of your house until the subdivision is totally completed or the legal costs of the builder for its lawyer discharging the builder’s mortgages. We are often successful in deleting some of these clauses on behalf of our clients who have brought Purchase Agreements to us before they are signed.