Some people think that purchasing a condo unit during its pre-construction period might be the fastest and easiest approach to dealing with condominiums. As a matter of fact, with this particular reasoning, you can say that the condo unit is only purchased based on the architectural drawings being presented to the client. However, reality-wise, there are a number of complications that you can expect when you decide to purchase a unit before it is constructed.
As the condo construction progresses, developers usually change their designs. This is expected since a lot of changes can take place during the entire construction period. That is why drafting of purchase contracts has been found to be more of benefit to the purchaser and must be something that you do. If not, the purchaser will suffer the consequences of the construction project being finished late. Some purchasers have even come to the point of already staying inside their condo units while proper permits are still on the process as well as certain parts of the construction project.
Some potential condo buyers should also watch out for developers that sell their condo units during the early stages on the construction but only have possession of more than 51% of the entire condo project. As time goes by, the developers might be in the position of not being able to sell off the condo units that are remaining.
When a condominium unit is not appealing to new buyers, you can expect a major decrease in the entire value of the condo units. Once he developers will find out that their condo units are not on high demand, developers will decide to rather have the unsold units rented out. This even makes the entire value of the condo unit even lower.
Therefore, if you have plans of purchasing a condo unit, you must speak with a well experienced lawyer first who will take charge in creating certain conditions on your purchase contract that will benefit you. Included in this purchase contract must be the fixed completion date. When the developer has failed to keep up with the estimated time that they can get the condo unit done, the buyer will then have every right to get back their deposit. This kind of agreement even helps in protecting the current value of the condo units that have been previously sold.
The timing of the completion must revolve around the condo buyer. Based on advice from the experts, the deed and proceeds from the sale of a unit must be kept in escrow first under the guidance of the lawyer of the developer. This must only cease once the developer has already sold more than 51% of the condo units.
The purchaser of the condo unit must make sure to pay the occupancy fees to the developer that includes the anticipated mortgage and the monthly maintenance fees for as long as both parties are keeping their agreement. There are some developers who will push these things without doing what is required of them in the terms that you have laid out with your lawyer. You have to take note of these things so that you can later on decide how you can go about in dealing with them.