Closing A Pre-Construction Property in Calgary
Hi, my name is Kyle Dovigi and I have helped over 150 people to close on their pre-construction properties in Calgary - including 4 of my own personal properties! Learn from my experience and mistakes! I am here to help, so contact me anytime.
Whether you're a first-time investor or adding to your portfolio, this guide is designed to make the closing process as simple and stress-free, and to protect your investment. I’ll walk you through every step—what to expect, what to prepare, and how to ensure a seamless closing from start to finish.
SECTION 1
Preparing for Closing
SECTION 2
Required for Closing
SECTION 3
30 Days Before Closing
SECTION 4
Closing Week
SECTION 6
Maximizing Your Investment
1) Insider Tips
Closing on a pre-construction property doesn’t need to be stressful and with the right preparation, you can ensure a smooth closing, and protect your investment.
2) Your Expert Team
Work with an all-star team of professionals to assist you with every aspect of your closing - trust experience.
3) Construction Progress
Developers provide periodic updates to keep you informed of construction progress and key milestones so that you can be ready for your closing.
4) Notice of Possession
The Notice of Possession provides your specific closing date and starts the closing process. Expect to receive this 30-90 days before closing.
5) Closing Costs
There are extra fees involved with closing any property that you need to have cash to cover. Closing costs in Alberta are shockingly low and it is one of the most affordable provinces to close in.
6) Lawyer
A lawyer is required for your closing and you need a strong quarterback behind you, so hire one in Alberta to coordinate your property closing–the good news is that everything can be done remotely and you never need to go to Calgary.
7) Mortgage
Mortgages are the trickiest part of closing a property and the #1 reason people don’t close on time. With enough time, any issue can be fixed, so start early!
8) Insurance
Insurance is your secret weapon to protect your investment and for peace of mind, but it’s also typically a requirement of your mortgage.
9) Utilities
Buyers must set up utilities and provide proof to the developer before their closing and may include electricity, gas, and water accounts.
10) Appraisal
An appraisal is the determination of the current market value of your property by an independent third-party and is generally a requirement of your mortgage lender.
11) Property Management
If you are a remote investor then hiring a processional local property management company to handle the day-to-day operations of your unit and communicate with your tenant is generally a good idea.
12) Property Taxes
Calgary property taxes based on the assessed value annually and are the responsibility of the landlord.
13) Condo Fees
Each condo hires a management company to handle the maintenance and upkeep of the building. Condo fees are collected by the company to pay for unmetered utilities and contributions to the reserve fund.
14) Holdco Registration
If you bought your property under a holding company and it was formed in another province, it must be reregistered in Alberta prior to closing. If you bought the property in your personal name, then this doesn’t apply to you.
15) Closing Paperwork
Get ready to print, sign via Zoom, and courier a large package of documents to your lawyer in Calgary so make sure your printer is working with lots of paper and ink!
16) Funds Transfer
A wire transfers is the only method accepted for fund transfers. Make sure your closing funds are available in a major bank account at least a week before your closing.
17) Possession Walkthrough
An inspection of the property is typically done on your closing day in Calgary and this is your opportunity to learn about the property and identify any deficiencies that need to be fixed.
18) Closing Day
Congratulations–the day you have waited for is finally here and this thrilling journey culminates in you becoming the proud owner of new property!
19) Renting Your Unit
In Alberta, properties are rented by property management companies, not real estate agents like in Ontario & BC. The landlord-tenant laws are also much more balanced with significant differences laws.
20) Rental Guarantee
A Rental Guarantee was a popular incentive that was offered by many developers as part of your purchase and is a great way to make your investment completely hands-off.