HawthorneVillager.com

14b which is still not finished, but almost every street has one or more houses for sale in . For example, two Quincy Corners side by side, near by the community park, never lived-in, no driveways, no grass, no appliances, but already on sale.

I’m not really against of this kind of business, because some people don’t have 30-40K to give it for one year. The only solution to them is to buy brand new house with lower downpayment and no time to wait is this resale.


I wonder how it is possible if we have to sign the purchase contract with commitment about the house not to be for resale.
Is it legally possible to be for sale?
And is here any taxes to be paid after sale?

Your contract may be different, but in our case it just prevented resale before the closing date. No driveways or grass I can see because those are often done well after the closing date, but appliances seems weird, you would think those would be in before closing.

Here is no appliances for detached houses from Mattamy. At the owner's expense.

If I'm not mistaken, in agreement with Mattamy it is nothing about resale before closing, but simple statement about house not to be for resale.

The contracts that Mattamy issued for phase 14 is pretty standard.

The contract states that a house is not to change hands before closing.... meaning that when you buy a house from Mattamy, you cannot turn around and sell the house BEFORE you own the house.

You can't sell what you don't own.

However....

The loophole is this: If a house is put up for sale, and the actual cash transaction takes place AFTER the owner gets the keys from Mattamy, then it's all legit.

There was a house in 14a that closed on a Thursday. By Saturday of the SAME week, the house was sold to another owner.

There are often stipulations that specify closing dates on the sellers' contract, such as "must be closed on or after (certain date)" or "must be closed upon 30 days" depending on what the seller wants.

I don't have the contract in front of me, but if memory serves the wording of Mattamy's contract was to prevent the selling of the contract / or assigning the sale at close. The reason was to try and discourage speculators from buying several homes, and then once the phase was sold out, selling their contract for a premium (not unlike scalpers... they get to the front of the line and buy up all of the good tickets leaving none for the people who want to go to the show).

As far as the number of homes going up for sale just after close it is normal... if in Canada the average person moves every 5 years therefore 20% of the homes in your area will probably be for sale in any given year. Since you can wait a year or more from signing the contract, and taking delivery it is only normal that some people have had changes that require that they move as soon as they close.

Marc

It's states very clearly in the Mattamy contract that you're not allowed to sell or or even advertise your home for sale until you've taken possession from Mattamy. They want to stay away from the contract flippers.
However, this doesn't stop people from putting out the word of mouth that as soon as they take possession they're going to be selling.
There's quite a few homes that will be sold within days of the owners getting the keys

Cliff

_________________
Cliff Barron
Selling in Milton for over 14 years!
Sutton Group - Summit Realty Inc. Brokerage
#1, 07-18 company wide!

cbarron@sutton.com
http://www.callcliff.ca
905-286-5888

Cliff, I take it that isn't the case in Mississauga? I ask because I remember seeing homes for sale in the classifieds that have not been built yet (they show the drawing of the house and/or floorplans). Or is it just a builder thing and some builders do allow you to sell before you take possession?