Pre-Construction & Assignments

A home bought from the builder's plans before it is built, with deposits paid in stages and final closing once the building is registered. Ontario new condos include a 10-day cooling-off period.

When the original pre-construction buyer sells their purchase contract to a new buyer before closing. It usually needs the builder's consent and an assignment fee, and has specific HST and tax implications.

Yes — Summitly features pre-construction projects and assignment listings alongside resale homes.

Often around 20% paid in stages over the construction period, though it varies by builder and project.

Buying pre-construction means purchasing a unit from the builder before or during construction, based on floor plans and renderings rather than a finished home. You sign an agreement of purchase and sale, pay your deposit in installments over time, and then wait through interim occupancy before final closing when the building registers. It lets you lock in today's price for a future home, though timelines can shift, so review the agreement carefully. Summitly's pre-construction database helps you compare active and upcoming projects across Ontario.

Pre-construction deposits are paid in installments rather than all at once, commonly totalling around 15% to 20% of the purchase price for domestic buyers. A typical structure might be 5% on signing, followed by additional 5% payments at set intervals (such as 30, 90, and 365 days), with a further amount on occupancy. Deposits on most pre-construction condos are protected under Tarion/HCRA deposit-protection rules up to applicable limits.

Interim occupancy is the period when you can move into and use your condo unit before the building is legally registered, but you don't yet own it on title. Final closing happens once the condominium is registered with the land registry, at which point ownership transfers to you, your mortgage funds, and you pay the balance and closing costs. The gap between the two can last months, especially on lower floors that are ready before the building completes.

Interim occupancy fees, sometimes called phantom rent, are monthly payments you make to the builder during the occupancy period before final closing. They roughly cover the builder's carrying costs and are made up of estimated interest on the unpaid balance, an estimate of municipal property taxes, and projected condo maintenance fees. These payments don't go toward your mortgage principal, so factor them into your budget when buying pre-construction.

Development levies (often called development charges) are fees municipalities impose on new construction, and builders typically pass them to buyers as closing adjustments that can run into the thousands or tens of thousands of dollars. Because these charges can rise between signing and closing, experienced buyers negotiate a cap on development levies and other closing adjustments in the agreement of purchase and sale. A capped levy limits your exposure to surprise costs, so it's one of the most valuable clauses to confirm during your 10-day review.

Yes. In Ontario, buyers of a new pre-construction condominium from a builder have a 10-day cooling-off period after signing the agreement of purchase and sale or receiving the disclosure statement, whichever is later. During these 10 days you can cancel the purchase for any reason and have your deposit refunded. Use this time to have a lawyer review the agreement, including deposit terms, occupancy estimates, and capped closing costs.

An assignment sale is when the original buyer (the assignor) sells their rights and obligations under a pre-construction agreement of purchase and sale to a new buyer (the assignee) before the deal closes. Instead of buying a finished property, the new buyer steps into the existing contract with the builder and completes the purchase at final closing. Assignments are common in pre-construction condos where the original buyer wants to sell before taking possession. Summitly maintains a dedicated assignment listing service to connect assignors and assignees.

In almost all cases, yes. The original agreement of purchase and sale governs whether and how you can assign, and most builders require written consent and charge an assignment fee. Some builders restrict assignments entirely or only permit them after certain milestones, so review your contract early. Working with professionals familiar with assignment transactions helps ensure the builder's conditions are met before you market the unit.

Since 2022, the assignment of a newly constructed or substantially renovated residential property is generally subject to HST on the assignment portion (the amount above the original deposit) under federal rules. Who pays the HST and how it interacts with new-housing rebates depends on how the deal is structured and whether the assignor was an investor or end user. HST on assignments is nuanced, so both parties should get professional accounting and legal advice before finalizing the price and contract.

It depends on your intent and circumstances. If the Canada Revenue Agency views you as having bought the unit to flip it, the profit is usually treated as fully taxable business income, whereas a genuine long-term investment may be treated as a capital gain (only a portion of which is taxable). Factors like how many assignments you've done, your stated intent, and holding time all matter. This is a frequently misunderstood area, so consult a tax professional rather than assuming capital-gains treatment.

Buyers turn to assignments to get into sold-out or highly desirable pre-construction projects that are no longer available directly from the builder. An assignment can also offer a shorter wait to occupancy than buying a brand-new pre-construction contract, since the building may be close to completion. In some cases the price is attractive relative to comparable resale units, though buyers should weigh the builder's fees, HST, and closing costs when evaluating the deal.

Sellers (assignors) assign when they want to exit before final closing, perhaps because their plans changed, they no longer want to carry the mortgage and closing costs, or they want to realize a gain sooner. Assigning avoids the costs of closing on the unit, taking possession, and then reselling it, including land transfer tax and double moving expenses. It can free up capital and deposits, though the builder's consent and contract terms determine whether it's possible.

An assignment lets you take over someone's existing pre-construction contract before the building closes, often to access a unit in a sold-out project, sometimes at a negotiated price. A resale is a completed, registered unit you buy on the open market with a clearer picture of the finished product and immediate occupancy. Assignments can offer value and selection but involve builder consent and more complex paperwork, while resale is simpler but typically priced at current market value. Summitly's assignment listing service can help you find and evaluate opportunities.

Pre-construction closing costs can be higher than resale because, on top of land transfer tax and legal fees, builders often charge development levies, utility connection fees, and Tarion enrolment, which together can add several thousand dollars. Many builders let you cap these levies in the purchase agreement, so review it carefully. Summitly and Zara can help you read the builder's cost-sharing terms before you commit. This is general information, not legal advice.

New and pre-construction homes are subject to HST, but owner-occupiers usually qualify for the New Housing Rebate, and builders typically include the net HST in the advertised price for primary residences. Investors who rent the unit out generally pay HST upfront and claim the New Residential Rental Property rebate separately. Because the rules are nuanced, confirm with your lawyer and let Summitly and Zara help you understand the basics. This is general information, not tax or legal advice.

Pre-construction projects often take several years from purchase to move-in, since you are buying before or during construction. Buyers typically pay deposits in stages, then take interim occupancy when their unit is ready, and final closing happens later once the building is registered. Because timelines can shift, builders provide estimated occupancy dates that may change. This is general information, not legal advice.

Interim occupancy is the period when you can move into your new condo before the building is officially registered and you take full ownership. During this time you pay an occupancy fee to the builder rather than a mortgage. Interim occupancy can last anywhere from a few weeks to many months, depending on how quickly the building completes registration.

New pre-construction condos in Ontario come with a statutory 10-day cooling-off period during which a buyer can cancel the agreement for any reason and have their deposit returned. The 10 days are counted from the later of receiving the signed agreement or the disclosure statement. Note this rescission right generally applies to new condos, not resale homes. This is general information, not legal advice.

Pre-construction deposits are usually paid in installments rather than all at once, for example a portion on signing and further amounts over the following months or at construction milestones. The total deposit often adds up to a meaningful share of the purchase price by occupancy. The exact schedule is set out in your agreement, so review it carefully; this is general information, not legal advice.

Pre-construction offers a brand-new unit, modern finishes, a phased deposit structure, and Tarion warranty coverage, but you wait years for completion, face possible delays, and pay closing costs plus potential development charges and interim occupancy fees. Resale lets you see exactly what you're buying, move in sooner, and often negotiate, though the home may be dated and need updates. Pre-construction suits buyers with time and an appetite for newness; resale suits those wanting certainty and a quicker move. Summitly tracks both, and Zara can compare a specific pre-con project against nearby resale comps; this is general information, not financial advice.

An assignment is buying a pre-construction contract from the original purchaser before the building closes, so you take over their unit and deposits, often before it hits the resale market. A traditional resale is buying a registered, existing home with a standard closing. Assignments can offer access to newer units and sometimes motivated sellers, but involve developer consent, assignment fees, complex HST and tax considerations, and tighter financing. Resale is simpler and more predictable. Summitly lists assignment opportunities and Zara can explain the process, but always engage a lawyer and accountant; this is not legal or tax advice.

A pre-construction condo usually has a lower entry price, a longer deposit schedule, and amenities, but you face condo fees, interim occupancy periods, and density. A pre-construction freehold house costs more and may require larger deposits, yet gives you land, no condo fees, and more space. Pre-con condos suit investors and urban buyers wanting lower entry cost; pre-con houses suit families wanting land and long-term value. Both carry development charges and closing adjustments to budget for; Summitly tracks new projects and Zara can compare them, but this is not financial advice.

Pre-construction deposits are usually paid in instalments on a schedule (for example a series of payments over the first year, then more at occupancy) rather than all at once. Deposits on new condos are protected up to limits under Ontario's new-home warranty framework. Confirm the deposit structure and protection details in your agreement and with your lawyer before signing.

Interim occupancy is the period after you move into a new condo unit but before the building is registered and you legally own it. During this time you pay the builder a monthly 'occupancy fee' instead of a mortgage. It can last months, and you don't build equity during it — factor it into your budget and timeline when buying pre-construction.

The monthly occupancy fee a builder charges during interim occupancy typically reflects an estimated interest component on the unpaid balance, an estimate of municipal property taxes, and an estimate of common-element (maintenance) costs. It is not a mortgage payment and doesn't reduce your principal. Ask the builder for the estimated occupancy fee before you commit.

Final closing (when the building registers and you take title) brings costs beyond the price: land transfer tax, legal fees, and builder 'closing adjustments' such as development charge levies, utility hookups/meters, Tarion enrolment, and education/parkland levies — some of which can be significant unless capped in your agreement. Ask your lawyer to review and negotiate caps on these adjustments before you sign.

New homes and condos in Ontario are covered by a mandatory new-home warranty administered through Tarion, with builders licensed by the Home Construction Regulatory Authority (HCRA). Coverage includes deposit protection and warranties against defects over set periods (for example one, two and seven years for different issues). Register concerns within the required timelines to preserve your rights.

The pre-delivery inspection is your walkthrough of a newly built home or condo with the builder before you take possession, where you document the home's condition and note any deficiencies, damage or incomplete items on the official form. That PDI form is important for your warranty claims, so be thorough and take photos — items you record are easier to have addressed.

Usually yes. Most builder agreements require the developer's written consent to assign, and builders often charge an assignment fee and set conditions (such as restrictions on marketing the assignment publicly). Read your agreement's assignment clause carefully, budget for the builder's fee, and have your lawyer confirm what's permitted before listing an assignment.

Assignments can have HST implications on the assignment amount, and whether the end buyer qualifies for the new-housing HST rebate depends on whether they intend to live in the home or rent it. The tax treatment of assignments has tightened in recent years, so it's genuinely important to get advice from your lawyer and an accountant before completing an assignment — don't assume.

Financing an assignment is possible but trickier than a standard resale: not every lender finances assignments, appraisals can be complex, and you may need to cover the assignor's deposits plus the assignment premium up front. Speak with a mortgage professional early and confirm your financing approach before committing, since assignment timelines can be tight.

Builder agreements often reserve the right to make certain changes to finishes, layouts, square footage within a tolerance, and building features, and completion dates can move. Material changes may trigger disclosure and, in some cases, rescission rights. Review the agreement's change and delay provisions with your lawyer so you understand what the builder can adjust and what recourse you have.