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Investment condo paid up front — or so they thought

On final closing of a pre-build condo there are three outstanding items that still need to be paid

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Q: We purchased a new condo a number of years ago and we have taken possession — but not ownership — of the property a few months ago. In conjunction with our financial adviser and our lawyer we decided to pay the amount owing to the builder when we took interim possession, instead of carrying the cost of a large sum owing for the next few months — all good.

We have now been informed that our investment condo is ready for final closing, which means we take title to the property and we can do whatever we like with the condo. Our lawyer has emailed us and told us we still owe close to $35,000 dollars on final closing. I thought we had paid all of this and now we have additional costs. What gives?

A: On final closing of a pre-build condo there are three outstanding items that still need to be paid. If you are not eligible for the HST rebate (discussed in other columns) you will have to pay that as well as the land transfer tax and any adjustments (additional builder costs) on closing.

It is quite conceivable that although you thought you were avoiding carrying the costs of a big amount owing to the builder there are still a bunch of final costs that you need to pay.

The costs of investing in property as an investment.

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