The Ontario condo market has seen some surprising challenges lately, especially for buyers approaching closing. Many purchasers are finding themselves owing up to 30% more than the current market value of their units, as values have shifted below the original contract prices. The long wait between signing and actual closing—often caused by pre-sales, lengthy approvals, permits, contractor arrangements, and labor shortages—has left buyers vulnerable to these market fluctuations. Banks, in turn, are only advancing mortgages based on the present appraised value, which can result in a shortfall in closing funds when contract prices are higher than appraisals. In previous seller’s markets, developers occasionally canceled deals due to escalating costs, drawing attention from the province and sparking proposed penalties and calls for independent oversight. Buyers have often faced complex contracts with few options to exit—typically just a 10-day cooling-off period or the rare chance to walk away if the occupancy date is missed. In my experience working with clients throughout the GTA, navigating these complexities underscores the value of having the right guidance and representation during every step of the process.
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