Buying a presale property can be an exciting opportunity, but it's important to carefully review the contract before signing. One key clause to watch out for is the Accelerated Completion Clause, which can impact your ability to prepare financially for your home purchase.
What Is the Accelerated Completion Clause?
When reviewing a presale contract, you may come across a clause that states something like:
"The buyer acknowledges and agrees that the actual completion date may be accelerated before the estimated completion date."
This means that the developer has the right to move up the completion date, potentially requiring you to close on the property earlier than expected.
Why Is This Clause a Problem?
If the completion date is accelerated:
- You may not have enough time to secure financing
- Your mortgage rate hold could expire, forcing you into a higher interest rate
- You might need to arrange your down payment and closing costs sooner than planned
For buyers relying on pre-approved financing, this can be a serious issue. If you're unable to close on time, you risk losing your deposit and facing legal consequences.
What Should You Do?
- Work with an experienced realtor – A knowledgeable agent will carefully review your presale contract and flag any concerning clauses.
- Cross out this clause – You (or your realtor) should request that the developer remove or modify this clause before signing.
- Ensure your financing is flexible – Speak with your mortgage broker about options that accommodate possible changes to the completion date.
Final Thoughts
Developers include this clause to allow flexibility in their timelines, but as a buyer, you should protect yourself from unnecessary risks. By working with a qualified realtor and carefully reviewing the contract, you can avoid unexpected surprises and confidently move forward with your presale purchase.
Thinking about buying a presale home? Let’s connect and ensure you’re making the best investment decision!