Buying Off-Plan - The Take-It-on-Faith Condo

​RISING demand and a scarcity of new apartments are creating something of a rush on new luxury condominiums in choice Montreal neighborhoods, with buyers increasingly signing contracts for spaces even before they are built.
​All of those properties were snapped up in the construction phase. Most buyers had little more than a floor plan, some artists’ renderings and perhaps a model kitchen and bathroom on which to base one of the most important purchases of their lives.

​“There is such a dearth of new properties that if you deliver a nice product with nice finishes in a good area, they’re going to sell.”
​But there are also plenty of potential pitfalls when buying essentially sight unseen, including construction delays, rising interest rates, a smaller apartment than advertised and a different view than you had imagined when looking at the blueprints.

Following are some things to consider when buying off the floor plan:

​THE FINE PRINT Don’t be intimidated by the offering plan. That big, bulky book, typically several pages long, spells out the terms and conditions of the sale.

​THE SQUARE FOOTAGE There are myriad ways to determine the square footage of an apartment. Some developers measure from the exterior walls, which adds unusable space to the figure. Others include outdoor space like a balcony, part of the exterior hallway or storage space — even if the storage unit is in the basement. “That can add anywhere from 10 to 40 percent to a plan.”  “It’s really problematic.” To avoid ending up with a unit smaller than indicated in the marketing materials, make sure you understand exactly how your apartment is measured. Resale price in Quebec is by the living space net square feet.

THE FINISHES Many model apartments at preconstruction sales offices have sleek finishes, but some developers may offer substitutes in the end. The words “or equivalent” in the offering plan should be a red flag, “but instead of the Miele washer-dryer, you might be getting something else.”

THE FLOOR PLAN Factor in surrounding apartments. One question to ask,  is what is happening with the apartment above you. “If it has a balcony, that may create a shaded condition for the space that’s beneath it.” Pay attention to the entire floor, including the number of apartments and the location of the elevator and the trash room. In other words, “are you right next to the garbage chute?”

THE FLOOR NUMBERS One client who had thought she was buying on the 14th floor was actually on the 12th. When looking at the building plans, she hadn’t realized that the first two floors were below grade. In the end she stayed on the 12th, but negotiated a lower price.

CEILING HEIGHT Check this, too. So-called transfer floors tend to have high ceilings with irregularly located ceiling drops, to accommodate mechanical equipment. Be sure to ask whether your unit is on a transfer floor, and if so, where exactly the ceiling drops are going to be.
THE VIEW Know your air rights. Apartments on what are called “lot lines” could lose their view if the neighboring lot was developed. To prevent that from happening and preserve views for their buildings, some developers buy the air rights from surrounding buildings.  Another informative tactic would be to pay a visit to the building next door. ​