Sales of Terrace Units
The mandate of the Sale of Terrace Units Program is to offer the tenants of the National Housing Corporation an opportunity to purchase their rental unit at an affordable price and to have their dreams of owning a home and a piece of the rock fulfilled.
The NHC ascertains the eligibility of tenants based on the length of time that they have been occupying the unit. * * Tenants occupying the unit for more than 3 years are eligible to purchase. * Tenants occupying the units for more than 20 years have to cover legal costs only.
If through age or other circumstances the tenant does not qualify for a mortgage from external entities, the NHC can provide funds on a case by case basis.
The tenant can jointly purchase the unit with a partner or relative or that person can act as a guarantor. However the unit must be purchased in the tenant's name.
If the tenant has arrears, they can be either be paid of before entering into an agreement to purchase, or the arrears can be added to the purchase price
1. The NHC will send the tenant an offer letter
2. The tenant should then:
a) visit the NHC to discuss the purchase price of the unit
b) make and appointment to visit a finance company if there is a need to borrow money
3. The NHC will provide a letter addressed to the mortgage company indicating that the tenant is qualified, the value of the unit and the purchase price. The tenant should take along this letter, a job letter and recent bank statements to the mortgage company.
4. The deposit is 10% of the purchase price. Once the deposit is paid the tenant can sign the Agreement to Purchase which is drawn up by the NHC.
5. The tenant should employ the services of an attorney-a-law to represent their interests.
6. Once the agreement to purchase is signed all rent payments stop. Instead the tenant makes payments to the NHC equivalent to the monthly mortgage payment.
7. When the legal process is complete, the tenant is refunded all of the excess payments that have been made. The tenant may use the money as they wish, but it is generally a good idea to put it towards the mortgage.
THE NHC is committed to fixing all structural defects to the units. The NHC has pledged that:
a) All asbestos roofs would be changed
b) Parapet or firewalls would be constructed
c) Sewage systems would be upgraded
d) Electrical supply would be upgraded
e) Subdivision surveys would be done
f) All structural defects would be repaired