Buying, Selling & Market Trends

What Are the Phases of a Pre-Construction Condo Purchase in Ontario?

By CRESI Real Estate · Published July 22, 2026 · Updated July 22, 2026 · 7 min read

A pre-construction condo purchase in Ontario moves through a fixed sequence — sales and marketing, a firm agreement, construction, a pre-delivery inspection, interim occupancy, condominium registration, and final closing. Interim occupancy and final closing are distinct events: buyers can possess and pay occupancy fees on a unit for a period before the building is registered and title actually transfers.

A pre-construction condo purchase in Ontario moves through a fixed sequence: sales, a firm agreement, construction, a pre-delivery inspection, interim occupancy, condominium registration, and final closing. Interim occupancy and final closing are different events — you can possess and pay fees on your unit before the building registers and title transfers to you.

What Are the Phases of a Pre-Construction Condo Purchase, in Order?

The purchase moves through a fixed sequence of phases, each with its own paperwork, obligations, and trigger for the next phase to begin.

Sales and marketing — the builder releases units for sale, often in stages, and buyers sign a purchase agreement.
Firm agreement — the agreement becomes binding once the statutory rescission (cooling-off) window closes without cancellation.
Pre-construction and approvals — the builder secures the permits and financing needed to begin building.
Construction — the building is physically constructed, with periodic progress updates to buyers.
Pre-delivery inspection (PDI) — buyer and builder walk the finished unit together before possession.
Interim occupancy — the buyer moves in and pays occupancy fees while the builder still holds title.
Condominium registration — the condominium corporation is created, which allows title to transfer.
Final closing — the mortgage funds, the remaining price is paid, and title transfers to the buyer.
Warranty period — the homeowner reports any deficiencies through Tarion’s official process.

Each phase is described in more detail below, in the same order.

What Happens During the Sales and Marketing Phase?

Builders typically release units in stages — an early “platinum” or VIP release to invited buyers or brokers, followed by a public release — supported by a sales centre, marketing materials, and the disclosure package required under the Condominium Act.

When you sign, you’re entering a purchase agreement and paying a deposit on the instalment schedule the agreement sets out. The Condominium Act gives buyers of a new unit a statutory rescission (cooling-off) period after they receive the agreement and disclosure statement, during which you can cancel for any reason. Use that window — have a real estate lawyer review the purchase agreement and the disclosure statement before it closes, since the agreement is drafted for the builder’s protection.

What Happens Once My Agreement Becomes Firm?

Once the rescission period passes without cancellation, the agreement becomes firm and binding on both sides, and the builder moves ahead with the project on the strength of it.

From here, your deposit continues on the instalment schedule set out in the agreement, and the builder proceeds to secure the permits, approvals, and construction financing needed to build. If the builder later makes a material change to the disclosure statement, the Condominium Act can reopen a rescission right specific to that change — a separate, narrower right from the original cooling-off period. Confirm the current mechanics of either right with your lawyer or Ontario.ca.

What Happens During the Construction Phase?

Construction is the phase where the building is physically built, from site preparation through structural work to the finishing of individual units, and it’s the phase buyers experience mainly through progress updates.

Builders are required to use a standard Tarion addendum to the purchase agreement that sets out the tentative and outside occupancy dates and obligates the builder to notify you if those dates change. This is where you’d first hear about a delay to your occupancy date. Any interior finish or upgrade selections are typically locked in earlier in the process, per your agreement’s own cutoff — confirm your specific deadlines with the builder’s customer service team.

What Is the Pre-Delivery Inspection (PDI), and When Does It Happen?

The pre-delivery inspection is a walkthrough of your finished unit that you and the builder conduct together before you take possession, to document the unit’s condition and note any deficiencies for repair.

The PDI happens once, immediately before interim occupancy begins — it is not the same thing as reporting a problem after you’ve moved in. Deficiencies noted at the PDI are tracked by the builder for repair; anything you discover once you’re living in the unit goes through Tarion’s separate, homeowner-submitted warranty-reporting process instead (covered below). Keep your own copy of the PDI report and any deficiency list.

What Is Interim Occupancy, and How Is It Different From Final Closing?

Interim occupancy is the period when you possess and live in your unit, but the builder still holds legal title to the building and your mortgage has not started — that only happens at final closing, once the building is registered.

During interim occupancy you pay an occupancy fee covering your estimated share of the building’s common expenses and realty taxes, plus a component tied to the builder’s carrying cost on your unit while it hasn’t yet closed. This fee is not a mortgage payment, and it does not build equity toward the unit — it’s what the buyer pays the builder while both wait for the building to register.

	Interim Occupancy	Final Closing
Who holds title	The builder	You, the buyer
Does your mortgage start	No	Yes
What you pay	An occupancy fee (estimated common expenses, taxes, and the builder’s carrying cost)	Your mortgage funds, plus the remaining purchase price
What triggers it	The Occupancy Date set under the purchase agreement’s Tarion addendum, once the builder confirms the unit is ready for possession	Condominium registration is complete

Confirm your specific occupancy fee estimate, adjustments, and closing package with your lawyer — these are set out in your individual agreement and closing documents, not fixed by any general rule.

What Is Condominium Registration, and Why Does It Matter?

Condominium registration is the formal step, completed at the land registry office under the Condominium Act, that legally creates the condominium corporation — and it’s the event that finally allows title to transfer from the builder to individual unit owners.

Until registration happens, no unit owner can hold legal title, no matter how complete the building looks or how long buyers have been living there under interim occupancy. Registration typically follows substantial completion of the building and the corporation’s declaration, description, and other required documents being accepted for registration. Once registered, the corporation exists as a legal entity and unit owners become its members.

What Happens at Final Closing?

Final closing is when your mortgage lender advances funds, you pay the remaining purchase price, and title to your unit transfers from the builder to you — you become the registered owner.

At this point your interim occupancy fee stops and is replaced by regular condo (maintenance) fees to the corporation, and you gain the rights of ownership, including voting at corporation meetings. Your lawyer handles the closing on your behalf, reviewing the statement of adjustments and registering the transfer. Because final closing follows registration rather than a date you choose yourself, ask your lawyer how much notice your agreement requires once a firm closing date is set.

Who Regulates the Builder and the Warranty, and How Do I Report a Problem After I Move In?

Two separate bodies are involved: the Home Construction Regulatory Authority (HCRA) licenses and regulates builders and vendors of new homes in Ontario, while Tarion administers the province’s new-home warranty program — the two roles are distinct and shouldn’t be confused.

If you discover a deficiency after you’ve moved in — whether during interim occupancy or after final closing — you report it through Tarion’s own homeowner-submitted warranty forms: for a condo unit, the first-year forms are the Initial Form, the Mid-Year Form, and the Year-End Form, filed at the points in your warranty period that Tarion specifies. These are forms you submit yourself, not an inspection performed on your behalf. This is different from the PDI, which happens once, before you move in, and is arranged with the builder directly. Confirm the current reporting windows and coverage for your unit directly with Tarion or HCRA, since both administer their own current requirements.

Frequently asked questions

Can I assign (resell) my pre-construction condo unit before it closes?

Many pre-construction agreements include an assignment clause that lets you sell your interest in the unit to another buyer before final closing, but this is a right the agreement grants — not an automatic entitlement. Builder consent, a required administrative process, and restrictions specific to your agreement usually apply. Have a real estate lawyer review your agreement's assignment clause before assuming you can assign, and confirm any current restrictions with the builder directly.

What happens if the builder delays my occupancy date?

Tarion requires builders to use a standard addendum setting out tentative and outside occupancy dates and requiring notice if the timeline changes. If a delay goes beyond what the addendum allows, you may be entitled to delayed-occupancy compensation under Tarion's rules. Confirm your specific dates, notice rights, and any compensation you may be owed directly with Tarion or a real estate lawyer, since these depend on your individual agreement and Tarion's current requirements.

Is the pre-delivery inspection my only chance to walk through the unit before I move in?

Generally, yes — the pre-delivery inspection (PDI) is the formal walkthrough where you and the builder document the unit's condition and any deficiencies before you take possession. It happens once, before interim occupancy begins, and is separate from reporting issues you discover after you've moved in, which go through Tarion's homeowner warranty-reporting process instead. Ask your builder how deficiencies noted at the PDI get tracked and resolved.

Does my Tarion warranty clock start when I move in or when I close?

For many warranty items, Tarion generally ties your unit's warranty period to the certificate issued around when you take possession (interim occupancy), not to your final closing date — while the building's shared common elements run on their own, separate warranty clock tied to their own completion certificate. Confirm your specific warranty start dates and coverage directly with Tarion, since your unit's documentation sets them.

Do I need my lawyer involved at interim occupancy, or only at final closing?

Both. Your lawyer typically reviews the interim occupancy closing package (setting out your occupancy fees and adjustments) when you take possession, and separately handles the final closing, when your mortgage funds, the remaining purchase price is paid, and title transfers. These are two distinct legal closings on the same purchase, not one event — confirm with your lawyer how they'll handle each.

Who decides when my final closing date happens — me or the builder?

Not you directly. Final closing follows condominium registration, which depends on the building's completion and the registration process at the land registry office — factors outside any individual buyer's control. Once registration occurs, the builder sets the final closing date (or a common date across units) according to your purchase agreement's terms. Ask your lawyer how much notice your agreement requires once a date is set.