Buying pre-construction

How it works in Ontario

• You buy from the builder, usually before the home is built, often months or years before you can move in.
• Deposits are usually paid in several instalments before you move in, on dates set in your agreement.
• When buying a new residential condo from a developer, you have a statutory 10-day cooling-off period. It begins on the latest date you receive the fully signed purchase agreement, the current disclosure statement and Ontario's Residential Condominium Buyers' Guide. To cancel within this period, written notice of rescission must be delivered to the developer or its solicitor within the applicable deadline. Have your lawyer confirm the deadline and delivery requirements.
• Eligible new homes and condominium units in Ontario have statutory builder warranty coverage backed by Tarion. Coverage has limits, exclusions and claim deadlines. Confirm the home's enrolment and applicable coverage.
• With a new condo, you may take occupancy before the condominium is registered and ownership transfers at final closing. During interim occupancy, an occupancy fee is generally payable even if you do not move in. This fee is separate from your deposit and does not reduce the purchase price.
• Occupancy and closing dates may change, subject to the purchase agreement, applicable law and the required addendum. The addendum sets out permitted extensions, notice requirements and any applicable rights to compensation or termination. Ask your lawyer to review these provisions.
• An assignment transfers your rights and obligations under the purchase agreement to another buyer before final closing. Whether it is permitted depends on the agreement and any required builder consent. Restrictions and fees may apply. Have your lawyer review the requirements before proceeding.
• Closing costs can include land transfer tax and other adjustments.

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