frequently asked questions
Building a new home is all about details; below you will find the most commonly asked questions.
Please click on the links below to get detailed information to frequenty asked questions.
- What is a Lot Hold?
- Quote
- Purchase Agreement
- What is a Plot Plan?
- Blueprints
- What are Architectural Controls?
- Can I make changes to my Purchase Agreement
- Mortgages, what is a draw mortgage?
- Lawyers and their role
- The True-Line Construction process
- Deposit Protection receipt
- Progress Payments or Draws
- Communication with True-Line
- Alberta New Home Warranty and Service Program
- Government Rebate, what is it and how does it work?
Lot Hold Return to Top
Once you have decided on which lot you wish to build we ask you to pay $1,000.00 to hold the lot in your name. The lot hold fee is deducted from the total purchase price should you build the home and fully refundable if you cancel the lot hold whatever the reason. The lot hold is a piece of mind knowing you can consider all your options while having a lot ready for you (some conditions apply, please talk to Ad Karsten for more details).
Quote Return to Top
True-Line gladly provides a no obligation quote. Each item is listed with the price so you can decide what you wish to keep or change. When you have decided to go ahead and build, the items in the quote will be listed in our specifications document and forms part of the Purchase Agreement.
Purchase Agreement Return to Top
The Purchase Agreement is a legally binding document and is a normal part of buying a new home. Essentially, the Purchase Agreement establishes the mutual obligations and a formal set of rules to govern the relationship between you and True-Line.
Plot Plan Return to Top
The orientation and location of your new home on its lot are indicated on a scaled-down drawing of the lot. This 'Plot Plan' shows the distance to the home from the front, back and side property lines. It positions the home in accordance with municipal bylaws for 'set-backs' from property lines and easements as well as a standard or reverse house plan. The locations of any easements are indicated as well.
Blueprints Return to Top
Working Drawings are the road maps for building your new home. They're the actual building plans. These scaled-down two-dimensional working drawings serve a number of purposes. For example, your builder will submit a set to receive building permit approval and Architectural Control approval.
A set of Blue Prints consists of the following elements:
Exterior Elevations are detailed, scaled and dimensional drawings of the roof and exterior walls of your home. They show your home's profiles, front, sides and rear-and indicate the location and types of exterior finishing materials to be used.
Interior Floor Plans provide a scaled-down overview for each level of the home, including the basement. Among other things, these floor plans indicate exact room dimensions, the placement and size of windows, the location and swing of doors, the layout and the configuration of kitchen and bathroom cabinetry, cross-sectional views of the home.
Construction Meeting Return to Top
Before True-Line applies for building permits and Architectural Control approval, you will meet with our Construction Manager and Color Consultant. During this meeting you will select the exterior colors for siding/stucco, shingles, exterior stone, shakes and trims that are regulated by Arcitectural Controls.
Once this is completed True-Line will apply for building permits which can take up to 4 weeks.
Architectural Controls Return to Top
To ensure the development of appealing new communities, land developers today often regulate things like the placement of homes on lots, the mass of exterior elevations, exterior design details, types of exterior finishes, and colours through architectural controls.
Architectural controls can bring added value to new communities and to your investment. Yet these design pre-requisites can also cause delays in developer approval of your new home plans if they don't conform to the developer's guidelines.
True-Line works with you to make suitable exterior design, material and colour choices. Architectural controls vary from development to development. If you change lots, ensure that the architectural controls have not changed.
To ensure conformity with the overall development concept, the developer may require modifications to the colour or material choices you've made with the Color Consultant. Or the developer may require that extra architectural details be added to the house.
Revisions may result in added costs which your builder representative will discuss with you before obtaining your approval.
Changes To orginal Contract Return to Top
All items listed on the original quote will be written on the specifications document and forms part of the Purchase Agreement. Any changes after the Purchase Agreement has been signed will be written on a Change Order form so all parties know what needs to be done and the cost for these changes if any.
With True-Line you can process these requests on line on our website at www.truelinehomes.com
Mortgages, what is a draw mortgage? Return to Top
Mortgages: There are many banks and mortgage brokers that can offer mortgages to you. There is no perfect answer as to where you should start as it also depends on your personal financial situation. Please speak to Ad Karsten for more information.
Shopping for a mortgage: You have made a decision - you want to build a new home, good choice!
Now it's time to go shopping for a mortgage and in your enthousiasm you visit as many banks as you can to get the best rate.
Buyer beware is the message here as banks often do a credit check and each hit on your credit score reduces that magical number you have worked for over many years.
If your credit score is just enough to qualify and you shop around with 5 banks and they all check your credit score, you may end up having a score that is too low to qualify so be careful with shopping for a mortgage.
TIP: You can shop around but specifically mention that you wish to do a calculation only to see if you could afford the new home; if you like the terms and conditions that the bank has to offer and wish to have a pre-approval, then a credit check is required to complete the application.
Draw Mortgage; A 'Draw Mortgage' mortgage allows True-Line to be paid a portion of the purchase price of the home at certain stages of construction. These stages are predetermined and written in the Purchase Agreement.
How do I arrange a Draw Mortgage?
- Step 1 - Get a pre-approval from a bank or mortgage broker. With the pre-approval you know how much you can spend on your new home. Your Mortgage Advisor will advise you on what documents you will need to gather so that your mortgage approval can be completed quickly and easily.
- Step 2 - Plan your new home design with Ad Karsten.
- Step 3 - True-Line will forward your signed purchase agreement to your bank of choice.
- Step 4 - Review and sign a mortgage commitment with your bank.
- Step 5 - Your bank will forward a mortgage approval letter to True-Line begin construction. Pay the down payment as agreed to in the Purchase Agreement.
- Step 5 - Visit with the lawyer to sign legal documents.
- Step 6 - True-Line and your bank will work together to arrange for draws.
Lawyers and their role Return to Top
The legal areas to be dealt with on the road to new home ownership consist of:
- PURCHASE AGREEMENT
- MORTGAGES: Registration and Disbursement of Funds
- TRANSFER OF TITLE
- POSSESSION & CLOSING
In most cases, Purchase Agreements are straightforward agreements between the purchaser and True-Line using the standard contract in Alberta which includes mandatory clauses about warranty coverage or the contract prepared by The Alberta New Home Warranty Program.
These Purchase Agreements are more than adequate to fairly represent the legal agreements between you and True-Line regarding the terms and conditions of building what you need in a new home, where, when, how and at what price.
The lawyer's duty regarding the mortgage is to ensure that it's properly executed by you, then properly registered on title in the first secured position, and that funds are disbursed according to instructions in the mortgage commitment letter and directions from the mortgage company.
On the closing of the sale, the legal firm fulfills its responsibility to transfer title to the purchaser.
One lawyer for all parties has its advantages. It may be efficient and cost-effective, representing a saving to all involved-including you, the mortgage company and the builder.
If you want independent advice or your transaction is more complex, you may wish to retain your own legal counsel - one whose expertise is in real estate matters-at your own expense.
Your legal counsel is your advisor, but you're the one making the business decisions surrounding your Purchase Agreement.
Construction Process Return to Top
Building a home is one of the most complex manufacturing processes as it depends on weather conditions, many humans involved to build your home and materials that can have defects. Rest assured that our 20 years experience will deal with these 'variables' so you will be able to take possession of your home as quickly as possible without compromising quality.
True-Line has an construction schedule that is updated by your dedicated site super on a regulary basis.
You can also access our website and ask questions and/or approve quotes for selections you have made. As in many professions, communication is key.
Deposit Protection Return to Top
Deposits are payments that bind your agreement with True-Liner. Deposits are paid prior to the start of construction and usually minimal 5%.
The Alberta New Home Warranty Program protects your deposits of up to 20% of the purchase price for a single family home, to a maximum of $100,000. True-Line is a Registered Builder Member of the Program.
If your deposits are greater than the protection limits, you should have a clear understanding of what conditions need to be put in writing as part of your Agreement with the builder to deal with the release or return of those sums which exceed The Alberta New Home Warranty Program's protection limits. You may want to consult with your real estate lawyer if you're unsure.
Coverage starts when the Deposit Protection Receipt is issued by your Builder Member. Each time you make a deposit, your builder representative will complete The Alberta New Home Warranty Program Deposit Protection Receipt. Your builder will mail a copy of the receipt to the Program on your behalf.
Progress Payments or Draws Return to Top
Progress Payments and/or Mortgage Draws are a normal part of True-Line financial plan for the construction of your home; True-Line also offers completion mortgages.
Standard formulas are used to determine the value of work in place at each stage. Canada Mortgage and Housing Corporation (CMHC), your bank and True-Line all use a similar formula.
If mortgage progress payments are part of your Purchase Agreement with True-Line, the bank normally requires an inspection by an accredited appraiser who will verify the stage of construction and the value of work in place, then recommend when the mortgage progress payment can be released.
Progress payments are safeguarded under The Alberta New Home Warranty Program's Builder Performance Protection coverage program.
Communication with True-Line Return to Top
Communication with True-Line is an easy process; you contact your dedicated site supervisor and he will look after your questions and concerns.
Alberta New Home Warranty and Service Program Return to Top
True-Line is proud to have received the award for Customer Service and Excellence.
"Timely", "Responsive" and "Effective" are key words to describe the commitment of The Alberta New Home Warranty Program and its Builder Members to warranty and service issues. Their approach is one of working with homeowners in a courteous and respectful manner to find appropriate solutions to issues that might arise.
During the first year of ownership, your builder's service and warranty program is dedicated to:
- Addressing all pre-occupancy defects within a reasonable time.
- Completing all pre-occupancy deficiencies as soon as possible.
- Responding within a reasonable time-frame to warranty and service issues brought to the builder's attention throughout the first year.
Government Rebate Return to Top
The Government Rebate is a program that focusses on stimulating home buyers to purchase a newly build home. All new homes are subject to 5% GST; however, the government will rebate a certain portion of that back to you.
Homes priced at $350,000 receive the maximum possible rebate of $6,300.00; homes priced at $450,000 and up will not receive a rebate. Homes between $350,000 and $450,000 and less then $350,000 will receive a pro-rate rebate.
Example;
Home purchase is $385,000 (before GST), GST rate is 5%
GST rebate is determined as follows; ($450,000 - $385,000) / $100,000 * $6,300 = $4,095
Total purchase price....: $385,000
GST at 5%...................$ 19,250
Less rebate....................$ 4,095
Total net home price...$ 400,155
When we write the purchase agreement, True-Line will deduct the GST rebate right away so you won't have to do the paperwork and apply for the rebate; the value received from the government is the same for you.