How do the stages influence the price? Properties in plans or pre-construction go through different stages. As construction progresses, prices tend to increase as well as deposits. However, not all developments have the same structure and many have incentives or attractions during different stages of construction. 1st. This stage is known as “reserve” in which the intention to acquire a “style” of unit in a “price range” is manifested and it is reserved with only 10%. 2nd. This stage is known as a "contract" in which a specific unit is reserved with a specific price. With the signing of this contract and a deposit equivalent to 20%, the 15 days of cancellation begin to count. 3rd. stage, known as “ground breaking”, where construction begins and another deposit is requested. 4th. stage is usually when reaching the middle of the building (exterior only) 5th. stage is usually at the end of the last floor (exterior only) 6th. stage, is the closing of the transaction. Terms that you should know before buying in pre-construction 1.-Unilateral Contract The Developer is the one who writes the contract and establishes all the rules, the buyer does not have the right to make any changes. 2.-Cancellation period Within this period (15 days from the signing of the contract), the buyer has the right (according to Florida law) to cancel the contract if he does not agree with any of its clauses, without any penalty. 3.-It is not transferable The contract is made in the name of the buyer or in the name of a company where this buyer is 100% owner. The property cannot be sold or transferred to a third person before the work is finished and the property deed has been executed, unless it has the consent of the Developer (Developer) 4.-Payment method In most projects a payment standard is followed, and may be different in some developments. 10% upon signing the contract 10% between 60 -90 days after the first deposit 10% at the start of construction 20% in the middle of the construction of the building (30th floor if it has 60 floors) 50% on the day of the deed of the property (closing day) 5.-Financing without contingency If for the final payment of the project the buyer requested a loan and it is not granted at the time of closing, and does not have the cash, the developer has the right to keep the total money delivered to date. In practice, the Developer suggests different lenders to facilitate this process. 6.-Breach of contract by the Developer If there is a breach on the part of the Developer, he must notify the buyers in writing, having a period of 7 days to solve it, if it is not fulfilled, the buyers would be fully entitled to claim their deposit with interest. 7.-Delivery time It can be 2 to 3 years if the purchase contract is signed at the beginning of the project, this time may be less depending on the stage of the project at the time of purchase. The finishes with which the units are delivered also influence the delivery time. 8.-Finishes It is important to make sure of the delivery conditions as this significantly influences the final investment; however, the "standard" in South Florida is that projects are delivered, like this: "Decorator ready", which is known as "ready to decorate" and means that it is delivered without floors and without paint. equipped with household appliances equipped with kitchen cabinets Complete bathrooms with and without floors. 9.-How to estimate closing costs when buying a pre-construction? The expenses to be paid at the time of the deed of the property vary if the transaction is cash or financed: Cash between 3% and 4% of the purchase price: Developer's Fee 1.75% to 2% Contribution to the 2-month condo Documentation stamps on transfer Owner's insurance policy title Other transfer costs Financed between 6% and 7% of the purchase price: Developer's Fee 1.75% to 2% Contribution to the 2-month condo Documentation stamps on transfer Title of the owner's insurance policy Mortgage registration and issuance Lender commission Other transfer costs
No comments:
Post a Comment