This is great information from one of our fantastic lawyers, David Feld of the law firm Feld Kalia which deserves to be shared. This concerns renting out or assigning new construction condos before registration (when you purchase the condo from the builder and are the legal owner). Very important information regarding what not to do prior to registration:
Regarding ADVERTISING a new construction unit for lease or sale…
You MAY be given permission to lease from the builder in the Agreement of Purchase and Sale, BUT you may NOT list or advertise for sale OR lease until AFTER the FINAL closing (unless given written consent to advertise).
Unfortunately some purchasers do NOT comply and still list on MLS or advertise elsewhere (think Kijiji).
The consequences can be SEVERE as the Vendor (builder) has the unilateral right and option of TERMINATING the Agreement of Purchase and Sale (and KEEPING your deposits). These days, builders constantly monitor MLS as well as other sites and immediately THREATEN those who breach these terms.
Thank you David Feld for this valuable information.
If you have any questions or concerns feel free to contact us.
Kim Gibbons, Your “Mortgage Superhero ®”
Mortgage Broker
FSCO lic. M08001363
416-400-8107
www.mortgagesuperhero.com
