The “Occupancy Phase”

So you purchased a pre-construction condo in 2010, and now the condo is “ready.”

Ready?  You mean “finished?”  Oh no, no.  It’s not even close to being finished.

But your own individual unit is finished, and now the developer gives you “occupancy” of the unit, while construction continues on the rest of the building.

Allow me to demonstrate…

“A picture paints a thousand words.”

And sometimes I wonder if the point gets across without a visual representation.

I believe that the idea of an “occupancy phase” simply shifts the cost from the developer to the consumer, as the consumer ends up paying the developer to finish the project.

If the Condominium Act is to be revisited, reformed, or re-written, the occupancy phase has to be done away with.

If developers can’t afford to build condos as a result, then so be it.

Besides, I’m sure it won’t be long before they figure out another way to pass the cost along…

Well, I don’t want to end the week on a sour note.  Especially with the weekend upon us!

So here is a really cute video of penguins falling…

Enjoy!

 

10 Comments

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  1. lui says:

    Im in the same position,condo during pre occupancy was a joke,workers everywhere,dust everywhere,hallways look like a Home Depot aisle,front door of the condo building isn’t even secured and “lobby” is just white walls with rough taping.Amenities is not ready,snotty building management workers that promise certain repairs but never is done since they don’t have to do it but its marked down on PDI form.Never ever again for pre occupancy purchases and by the insane prices asking by builders in the city core the insanity of condo market will implode sooner than later plus with our declining dollar foreign investors would find alternative countries to invest in…

  2. Sam says:

    Wow! That’s quite informative. Living in BC, we don’t have these situations. Given this, I do not know anyone who buy from a non-reputable developer. They are just asking for trouble. But I bet a lot of them (buyers) just take their chance hoping it will go up by the time it completes so the risk is worth the headaches.

  3. honeyoak says:

    David, while the “occupancy phase” is obviously deplorable the real cause of these costs is the building planning system. This imposes unnecessary interest costs on the project. If it only took them one month, or Temporary Occupancy Certificates were issued buyers would have more leverage.

  4. AndrewB says:

    I suppose someone has to buy pre construction, so we can get resale.

  5. Brian says:

    bought new build once.. never again..

  6. DRichards says:

    Its hard to believe anyone ever buys pre construction at all.

  7. Darren says:

    I’m working on a condo that just received occupancy. And it’s so far from being ready for residents it’s mind blowing. I don’t know how some of these developers sleep at night.
    I’ve done the pre construction thing 3 times. Never again!

  8. JC says:

    I would like to see changes made so that the consumer isn’t left holding the bag if the property they buy turns out to need fixes outside the initial 2 year period because of negligence/poor construction.

    As it’s stands now, you buy something, you move-in and if something goes undiscovered for two years, the builder is no longer responsible for it. Whether it be cutting corners, using sub-grade materials, improper engineering (like putting too many trees on top of an underground parking garage), or just cheaping-out in general.

    So two years + out, you’re left with a “new” construction condo or freehold home that needs major work because it wasn’t done right the first time, and Tarion tells you that because the home is still “habitable”, they’re washing their hands of you.

  9. FroJo says:

    Thanks David, I really enjoy your videos.

    I imagine that amendment of the Act will happen only when the condo boom is finally over. Right now there are too many interests propping up the status quo and there’s no unified “voice of the buyer” strong enough to counter those interests.

    But hey, cute penguins!
    FJ

  10. amral says:

    What happens if an owner gets injured while all that building is still going all around your unit

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