In 2022, the number of housing starts for condominium units dropped by 14% compared to 2021, reaching the lowest total in twenty years with only 6,937 units. Despite a 25% decline, two-thirds of these starts were located in Montreal. So, if you’re thinking about buying a new condo, stay with us. Our inspectors reveal three important things to consider before making your move!

1. The risks of buying a pre-construction condo

The first point to consider is whether you’re buying a pre-construction unit or one that is already built. If it’s a pre-construction purchase, there are several factors to keep in mind. For example, how many units must the developer sell before securing financing? Often, a developer needs to sell half the units before getting the funds necessary to begin construction. Are you ready to wait, or do you need to move in by a specific date?

Also, read the preliminary contract carefully and make sure you fully understand what you’re agreeing to. It will contain a complete description of your unit, its location in the building, the sale price, the delivery date, and more.

2. The pre-delivery inspection of your private unit

The pre-delivery inspection of your new condo is a crucial step in the buying process. During this inspection, you thoroughly review your unit and check if all the work agreed upon in writing with the contractor has been completed. You must complete the pre-delivery form and list any items that need finishing or correction — whether it’s a scratch on a countertop, a misaligned door, and so on.

To facilitate communication and maintain a good relationship between parties, the GCR (Garanties Construction Résidentielle) strongly recommends hiring an independent building inspector to represent you during this step. The inspector is an impartial building professional who can advise and support you throughout the buying process to ensure you receive everything you paid for.

Afterward, you must agree with the contractor on a deadline for the corrective or finishing work and note it at the end of the form. Keep in mind that this deadline cannot exceed six months.

3. The Guarantee Plan for new residential buildings

The Guarantee Plan for New Residential Buildings is mandatory in Quebec and automatically applies to a wide range of new buildings: detached, semi-detached or row houses; duplexes, triplexes, fourplexes or fiveplexes; manufactured homes and — good news — condos!

Among other protections, the plan ensures that if you’re unable to take possession of your unit on the scheduled date, you may be eligible for up to $6,000 in coverage for temporary housing, moving, and storage expenses. Additionally, the GCR-managed plan includes several coverage components, ranging from one year for visible or hidden defects to up to five years for design, construction, or execution flaws. There’s also a three-year protection against hidden defects.

If you’re thinking about buying a new condo, contact our building inspectors to make sure you get the quality you paid for.