A Kitchener condominium developer has teamed up with BuzzBuzzHome, a website that lists new construction condos and houses in Canada and the US, to allow purchasers to buy new construction condos online.
After viewing the project details, including floor plans, photos and virtual tour videos of model units, purchasers can click on the “Buy Now” button to start the purchase transaction. A $3000 deposit is payable by credit card. As is the case in all condo purchases in Ontario, purchasers have ten days after delivery of the disclosure documents and a copy of the purchase and sale agreement executed by both parties within which to rescind the agreement. With the online purchase, $1.00 is charged to the credit card when the online transaction is finalized. The balance of the initial deposit, is charged to the credit card after the rescission period when the deal becomes firm. Two additional deposits, each equal to 5% of the purchase price are payable by cheque 60 and 120 days after.
Purchasers are required to verify their identity by uploading a copy of a bank, loan or credit card statement, as well as a recent phone or utility bill. Alternatively, purchasers can deliver these documents to the sales office once the online transaction is complete.
The website also offers a ”Get Pre-Approved” button. Those who click on this button will be contacted by a BMO Mortgage Adviser to initiate the mortgage application and pre-approval process.
Buying a condo online offers convenience to purchasers, especially for those who are out-of-town. Initially, tech savvy real estate investors will probably be most comfortable buying real estate online.
This is the first project in Canada that allows for on-line purchases of pre-construction condos, but the developer also has a traditional sales office that prospective purchasers can visit. Time will tell if this is the way that condos will be bought and sold in the future. If this becomes the norm it will be a much more cost-effective way for developers to market condos instead of building extravagant sales centres that contain partial or full model suites.