New-Construction Purchase
A new-construction purchase comes with its own legal framework. The builder’s agreement governs construction timelines, closing adjustments, HST rebates, occupancy, changes to the home and costs that may not be included in the advertised price. We identify what matters, explain your financial exposure and give you clear guidance before your review period expires.
What we do
More steps than a resale, spread over a much longer timeline.
New-Construction Purchase
Worth knowing
New-construction transactions follow a different cost structure and timeline than resale purchases. Understanding these three features early will help you budget accurately, arrange financing and plan your move with confidence.
Your final closing amount may include development and education levies, utility connections, meter installations, warranty enrolment and other builder adjustments. Some charges may be capped while others remain open-ended. We identify the potential exposure before your review period expires, so you understand what the agreement permits the builder to charge.
With a pre-construction condominium, you may receive the keys during interim occupancy before the condominium is registered and ownership transfers to you. During this period, you pay an occupancy fee rather than mortgage payments. The fee does not reduce the purchase price or build equity in the property.
The Statement of Critical Dates establishes the tentative, firm and outside dates governing your transaction. Builder extensions may be permitted when the required notice and contractual conditions are satisfied. Keep your mortgage rate hold, current home or lease, movers and other arrangements flexible until the closing or occupancy date is firmly established.
Common questions
Yes, and before signing is the ideal time. If the builder requires you to sign first, send us the complete agreement immediately afterward. Pre-construction condominium buyers generally receive a statutory 10-day cooling-off period, while the review or rescission rights for a new freehold purchase depend on the applicable legislation and the terms of the agreement. We confirm your exact deadline, explain the material risks and discuss any changes you may wish to request before the agreement becomes firm.
Usually. Builder agreements may permit additional charges for development and education levies, utility connections, meter installations, warranty enrolment, legal administration and other adjustments. We identify which costs are capped, which remain open-ended and what should be included in your closing budget.
Builder agreements and the Tarion Addendum may permit dates to be extended when the required conditions and notice rules are followed. We review the Statement of Critical Dates and any notices you receive, then explain how the change affects your financing, moving plans and any available termination or compensation rights.
Interim occupancy begins when your unit is ready to be occupied but the condominium has not yet been legally registered. You may move in, but you do not yet own the unit and your mortgage has not been advanced. Instead, you pay the builder a monthly occupancy fee that does not reduce the purchase price or build equity. Final closing occurs after the condominium is registered. At that stage, ownership is transferred to you, your mortgage is funded, land transfer tax and final adjustments become payable, and title is registered in your name. These are two separate legal closings with different documents and costs.
