Buying a Pre-Construction Condo in Ontario: What to Know
Quick answer
Buying a pre-construction condo in Ontario means buying from the builder's floor plan before it's built. Expect a staged deposit (often ~20% over time), a 10-day cooling-off period to review documents, an interim 'occupancy' period before final closing, and closing costs that can include development charge levies and HST considerations. Read the agreement carefully — especially deposit structure, closing-cost caps and assignment rights.
How pre-construction works
You sign a purchase agreement with the builder and pay deposits in stages while the building is constructed. Years can pass between signing and final closing, so you're buying tomorrow's home at today's contract price.
The 10-day cooling-off period
Ontario gives pre-construction condo buyers a 10-day rescission period after signing to review the disclosure statement and agreement (and have a lawyer review it) — you can cancel for any reason and get your deposit back.
Occupancy vs final closing
You typically take 'occupancy' (move in and pay occupancy fees) before the building registers and you take title at final closing. Budget for both dates and the costs at each.
Watch the closing costs and clauses
- Development charge / levy caps — negotiate a cap to avoid surprises
- HST and rebate eligibility (end-user vs investor)
- Assignment clause — can you sell the contract before closing, and at what fee?
- Deposit structure and what's protected
Key takeaways
- You buy from plans with staged deposits.
- A 10-day cooling-off period lets a lawyer review everything.
- Occupancy comes before final closing — budget both.
- Negotiate closing-cost caps and understand assignment rights.
Frequently asked
How much deposit for a pre-construction condo?+
Often around 20% paid in stages over the construction period, though it varies by builder and project.
Can I sell a pre-construction condo before it's built?+
Sometimes — through an 'assignment sale', if the builder's agreement allows it and you pay any assignment fee. Read the assignment clause before you count on it.
Is there a cooling-off period for pre-construction in Ontario?+
Yes — a 10-day rescission period after signing for new condos, during which you can cancel and recover your deposit.