Don’t Accept to Provide a Too Large Deposit
A developer may suggest you pay a higher deposit in exchange for a hefty discount on the sale price. This is a risky proposition. You are better off making reasonable, gradual instalments as the work progresses, such as 5% payable upon signing the contract, 5% at the halfway point and 5% upon completion of the roof and walls.
See If the Company Is Trustworthy
You can verify a construction company and its shareholders’ dependability in various ways. For example:
- Look up the company in the Registre des entreprises du Québec to learn its shareholders’ names. Then research the shareholders online to find out if any are involved in a lawsuit or to read customer reviews.
- Confirm that the company holds a licence with the Régie du bâtiment du Québec.
- Consult CanLII to see if the developer or their company (former or current) has ever declared bankruptcy or has been the subject of a lawsuit.
- Go to the Office de la protection du consommateur’s website to find out if the company has received complaints and, if so, of what type.
- Check the municipality’s land register to confirm that the developer does in fact own the land.
- Go to the GCR’s Accredited Business Directory where you will find the addresses of the buildings or homes constructed by your developer. Go visit these buildings. And while you’re there, why not talk to the owners to see if they are happy with their property?
Doing your homework won’t guarantee that everything will go according to plan with the construction company, but this will allow you to eliminate potential developers from your list.
Partner with a Real Estate Broker
A broker is the key to avoiding a disappointing real estate acquisition. They know the laws, apply them, and carry out all the checks for you. By working with RE/MAX, you can even take advantage of our Tranquili-T insurance coverage, which includes legal assistance in the event of a lawsuit.