Real estate law: pre-construction
Pre-construction, new builds and assignments
Buying from a builder is not like buying a resale home. The agreement is written by the builder, the dates can move, and the closing costs include charges that resale buyers never see. Review matters most before you sign, and there is usually a short window to do it.
Read it before the cooling-off period ends
Builder agreements are long, and they are drafted to protect the builder. Most contain provisions allowing the closing date to move, and adjustments that can add a substantial amount to what you pay on closing.
Ontario gives buyers of new condominiums a statutory rescission period after receiving the disclosure statement. That window is the moment to have the agreement reviewed, because afterwards the terms are fixed.
What we handle
Builder documents and critical dates
Reviewing the agreement and identifying the dates that carry consequences if missed.
Interim occupancy
For condominiums, the period when you occupy the unit before title transfers, and what you pay during it.
Tarion coordination
The new home warranty requirements that apply to your purchase, and the deadlines attached to them.
Adjustments review
Development charges, levies, meter installation and utility connections, which are frequently capped only if the agreement says so.
Final closing
Registration, reporting and the transfer of title once the build completes.
Assignment sales
An assignment sells your contractual right to the unit before it completes, rather than the unit itself. It is a different transaction with its own requirements.
The assignment agreement
Reviewing it and explaining where the risk sits, which is rarely where people expect.
Builder consent
Most agreements require the builder's consent, often with a fee and conditions attached. Some prohibit assignment altogether.
Timeline coordination
Aligning the assignment with the builder's schedule and the eventual closing.
HST and tax considerations
Assignments have tax consequences that catch people out. Worth understanding before committing, alongside your accountant.
Dates to track from the start
- Occupancy date, and the outside occupancy date
- Final closing date
- Deposit schedule, and what happens to deposits if the build is delayed
- Whether assignment is permitted, and on what conditions
- Pre-delivery inspection: keep lists, photographs and written correspondence
Common questions
Should I have a builder's agreement reviewed before signing?
Yes, and quickly. Ontario gives buyers of new condominiums a statutory rescission period after they receive the disclosure statement, and that window is the point at which the terms can still be reconsidered. Afterwards they are fixed.
What are the extra closing costs on a new build?
Development charges, levies, meter installation and utility connections are the usual ones, and they can add a substantial amount. Some agreements cap them and some do not, which is one of the first things worth checking.
What is interim occupancy?
On a condominium, the period when you can occupy the unit before the building is registered and title transfers. You pay an occupancy fee during it, which is not a mortgage payment and does not reduce what you owe.
Can I assign my pre-construction unit before it completes?
Sometimes. Most agreements require the builder's consent, often with a fee and conditions attached, and some prohibit it outright. There are also tax consequences worth understanding before you commit.
Why work with Gurpreet?
Clarity
Plain-language explanations and clear next steps.
Responsiveness
Timely updates, so you are never left guessing.
Accuracy
Careful review of documents and title issues to reduce risk.
Coordination
Working directly with your realtor and lender to keep the closing on schedule.
Meet Gurpreet
Barrister & Solicitor, Notary Public, Mahal Law Professional Corporation
Gurpreet Singh Mahal is the principal lawyer at Mahal Law Professional Corporation, serving clients across Ontario, including Brampton, the Greater Toronto Area, and Ottawa.
Read Gurpreet's full profile
Talk to Gurpreet about a pre-construction purchase
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- Call
- 613-306-9900
- Office hours
- Monday to Friday9:00 AM to 6:00 PMSaturday10:00 AM to 2:00 PMSundayClosed
- Visit
- 101-14 Chamberlain Ave
Ottawa, OntarioGet directions (opens Google Maps in a new tab)