Buyer Guide · 7 min read
The Pre-Construction Buying Process
From signing a worksheet to receiving your keys — what actually happens when you buy a pre-construction unit in Ontario, in the order it happens.
Research and shortlist projects
Before you go to a sales centre, understand what you can afford — not just the purchase price, but the full closing cost picture. Use our closing cost calculator and HST calculator to model your actual outlay. Compare projects on price per square foot, deposit structure, occupancy timeline, and the builder's track record.
Register and visit the sales centre
Most builders require you to register interest before attending a VIP event or public sales launch. At the sales centre, you'll be assigned a sales rep, shown a suite selection, and presented with pricing. Bring a notepad. Do not sign anything at the sales centre — you have time.
Choose your suite and sign a worksheet
A worksheet is not a binding contract — it holds a specific unit for you temporarily while the purchase agreement is prepared. You typically pay an initial deposit (5–10%) when the worksheet is signed. This is fully refundable during the cooling-off period.
Hire a real estate lawyer before you sign
Book a lawyer before you go to the sales centre — not after. Once you receive the purchase agreement and disclosure statement, the 10-day cooling-off clock starts. Your lawyer needs enough time to review the agreement, request amendments, and advise you. Standard agreements are 50–80 pages, and the negotiation window is limited.
Sign the purchase agreement
The purchase agreement is the binding contract. It sets out the purchase price, suite specifications, deposit schedule, closing date, and the builder's rights. Your lawyer will negotiate amendments — assignment rights, cap on closing cost adjustments, and closing date extension limits are the most common. Expect the builder to accept some and reject others.
Use the 10-day cooling-off period
You have 10 calendar days from receiving both the signed agreement and the disclosure statement to cancel for any reason and receive a full deposit refund. Use this time to finalize your legal review, confirm your financing, and make sure you understand everything you're committing to. See our cooling-off period guide for the full details.
Make staged deposit payments
Pre-construction deposits are typically paid in stages over 6–12 months after signing. A common structure for condos: 5% on signing, 5% in 30 days, 5% in 90 days, 5% in 180 days — 20% total before construction begins. These funds are held in trust by the builder's lawyer and are protected under Tarion's deposit protection program (up to $100,000 for condos).
Arrange financing
Pre-construction purchases often close 3–5 years after signing, so a mortgage commitment from today isn't useful. Most buyers get pre-qualified now, then arrange a firm mortgage commitment closer to the confirmed closing date. Rates and qualification rules may change significantly between signing and closing — factor this risk into your decision.
Interim occupancy
For condos, there is typically a period between when your unit is ready and when the building is registered with the province. During this period, you can move in but you don't own the unit yet — you pay a monthly interim occupancy fee instead of a mortgage payment. The fee covers interest on your unpaid balance, property tax, and an estimate of maintenance fees. Use our interim occupancy estimator to project the cost.
Final closing
Final closing is when the building is registered, title transfers to your name, and your mortgage activates. Your lawyer handles the transaction. You'll pay the remaining balance of the purchase price (less deposits paid), plus closing costs: land transfer tax, lawyer fees, and development charges levied by the builder. After final closing, you own the property.
Useful tools for every step:
- HST Rebate Calculator — model your Ontario HST exposure at step 1
- Closing Cost Calculator — total outlay including LTT and dev charges
- Interim Occupancy Estimator — project monthly IOF costs
- AI Document Review — upload your purchase agreement for AI analysis (free)