Are you about to start your search for a pre-construction condo? If you’re new to the process, you’ll probably encounter some unfamiliar steps. They’re not as complicated as many first-timers believe, but understanding them is the key to making a fully-informed purchase. With that in mind, I’m going to take this opportunity to discuss an important (but frequently misunderstood) part of the pre-con purchase process: submitting worksheets.
Unfortunately, there are many misconceptions surrounding worksheets—which leads some prospective buyers to hesitate before filling them out. If you’re about to embark on a pre-construction search, here’s what you need to know about these crucial documents…
What is a worksheet?
Let’s start with the basics. Put simply, a worksheet is a document that buyers fill out to express their interest in purchasing a unit in a particular pre-construction development. You will use this sheet to indicate which layouts and floors you’re most interested in. In the initial stages of the project’s launch, you will typically find space to enter up to 3-5 preferences. Here’s an example:
Preference 1: 1 bedroom, high floors, west-facing or corner unit
Preference 2: 2 bedrooms, lower floors, north-facing or any direction
Preference 3: bachelor, any floor, any exposure
You’ll also use your condo worksheet to provide personal information—such as your name, current address, and social insurance (SIN) number, along with proof of your identity. A copy of your driver’s license will typically suffice.
Does a worksheet constitute an offer?
Before we go any further, I’d like to clear up one common misconception. A worksheet is not a binding agreement, a commitment, or a promise to buy anything even if it is filled for a specific suite. It’s just a way of stating your interest in purchasing a unit. This distinction is an important one, since many condo hunters mistakenly assume that submitting a worksheet will obligate them to a building’s developers in some way.
The truth is, you’re not committed to purchasing a unit until you’ve signed your Agreement of Purchase and Sale. Even then, you’ll have a ten-day cooling off period to back out of the deal.
When will you fill yours out?
Before you can indicate the type of units you’re most interested in, you’ll need to preview some floor plans. Your agent can show you your options once they gain access from the developer. If any of the layouts you see catch your eye, I suggest filling out your worksheet asap. While it’s true that the developers will set a deadline for submissions, getting your sheet in early may help you secure your ideal condo (more on that below).
Once it’s ready, you’ll hand off your worksheet to your agent. They’ll submit it to the developer, at which point it’s time to play the waiting game.
The allocation process
Fortunately, you won’t have to wait too long. After the deadline, it usually take the developers 1-2 days to inform your agent of whether you’ve been allocated a unit (and, if so, which of your preferences you’re being offered).
Allocation occurs in one of two ways. Most often, worksheets are timestamped. Prospective buyers are allocated units on a first come, first serve basis. In these situations, you should fill out your sheet and give it to your agent asap. Less commonly, developers will use the lottery method. In these cases, allocation occurs in a random order.
Keep in mind that there can sometimes be a bit of back-and-forth with developers. For example, if you don’t like any of the units offered to you, the developer may offer another alternative the following day. For this reason, it’s important to stay in touch with their team (the right agent will can guide you through this part of the process).
Tips for success
There are a few steps you can take to increase your chances of being allocated one of your top choices. First off, make sure you’ve included all of the information that the developer is requesting—or your document may be viewed as incomplete.
When it comes to selecting your preferred units, be as flexible as possible. Of course, it doesn’t make sense to include five options if you know there’s only one floor plan you’ll be interested in. That said, if there are several layouts that you’re on the fence about, it doesn’t hurt to include them all.
Last but certainly not least, work with an agent who specializes in pre-construction. I’m talking about a real estate professional who knows the process inside and out. They’ll know which steps to take to increase the likelihood that you’ll get the condo of your dreams. They’ll also have good working relationships with reputable developers and builders in the city—and the knowledge to advise you accordingly.
Thinking about buying a pre-construction condo? I have the expertise to guide you through every step of the process—from submitting worksheets to closing the deal. Call or text to learn more: 416-500-5360 / Email: info@rashidnotash.com
