Buying a unit before it exists.

What buying pre-construction means

A pre-construction purchase is an agreement to buy a specific unit from a builder before the building exists, priced and specified from floor plans and sample finishes rather than a finished space you’ve walked through. That trade — customization and a longer runway to close, against buying something you can’t yet inspect — is the whole shape of the purchase, and it’s structurally different from buying a resale condo. Our why buy pre-construction guide lays out that comparison in full; this page focuses on the mechanics of the purchase itself.

Deposit structure and schedule

Unlike a resale deposit, which is typically one payment shortly after your offer is accepted, a pre-construction deposit is paid in instalments spread across the life of the agreement, on dates the agreement itself sets — not tied to the building’s actual construction progress. Tarion separately administers deposit protection specific to new condominium units, a layer of coverage with no resale equivalent. Confirm your exact instalment schedule and what protection applies to your specific deposit with a real estate lawyer before you sign; our pre-construction phases guide covers where the deposit schedule sits in the wider purchase sequence.

Interim occupancy vs. final closing

These are two separate legal events, not one. Interim occupancy is when you move in and start paying an occupancy fee — covering your estimated share of common expenses, realty taxes, and the builder’s carrying cost on the unit — while the builder still holds title and your mortgage hasn’t started. Final closing comes later: once the condominium corporation registers, your mortgage funds advance, you pay the remaining purchase price, and title transfers to you. Our pre-construction phases guide walks through both events, and everything between the purchase agreement and your first condo fee, in order.

The statutory cooling-off period

Ontario’s Condominium Act gives buyers of a new condominium unit a 10-day statutory right to cancel the purchase agreement, for any reason, once they’ve received the signed agreement and the builder’s disclosure statement — as of 2026-07-29. It’s a short, specific window, not an ongoing right you can exercise anytime before closing, and it has no equivalent on a resale purchase. Have a real estate lawyer review your agreement and disclosure statement during that window; confirm the exact trigger date and delivery requirements with your lawyer or Ontario.ca, since the mechanics matter and this guide describes the right in general terms only.

Tarion warranty coverage

New condominium units in Ontario carry Tarion’s new-home warranty, covering defined categories of construction defect for set periods that begin at possession — as of 2026-07-29, administered separately from the Home Construction Regulatory Authority (HCRA), which licenses and regulates builders themselves rather than adjudicating warranty claims. The pre-delivery inspection, done immediately before you move in, is where you and the builder jointly document the unit’s condition; anything found afterward is reported through Tarion’s own homeowner forms instead. Current coverage categories, periods, and reporting deadlines are set by Tarion and can change — confirm them directly with Tarion rather than relying on a general description, and see our pre-construction FAQ guide for what else the purchase agreement and disclosure statement typically contain.

Assessing a builder’s track record

Before committing a deposit, it’s worth checking who you’re actually buying from. The Home Construction Regulatory Authority licenses and regulates new-home builders and vendors in Ontario, and its public registry shows a builder’s current licensing status and any disciplinary record — a starting point, not a full picture. Beyond licensing, a builder’s history on prior projects — whether past buildings closed close to the dates originally promised, and how existing owners describe the finished product and post-closing warranty service — is worth researching before you sign, since a purchase agreement is drafted to protect the builder rather than the buyer.

Assignment clauses

Many pre-construction agreements permit an assignment — selling your rights under the agreement to a new buyer before the unit closes — but only if your specific agreement allows it, and usually only with the builder’s consent and an administration fee. Some agreements restrict or prohibit assignment entirely. Our pre-construction FAQ guide covers how deposit and upgrade payments are treated in an assignment, and why a lawyer’s review of the assignment clause matters before you sign the original agreement, not after.

Funding a project instead of buying a unit?

This page is about buying a specific unit for yourself. If you’re looking to put capital into a builder’s project itself — as an equity partner or at a flat rate of return, without buying a unit — see Development & Flipping as an Investment. And if you’re weighing pre-construction against buying an existing resale property instead, see Residential for how a resale condo purchase compares.

Considering a specific project?

Tell us which builder and project you’re looking at, and where you are in the process — CRESI, RE/MAX Hallmark, will help you review the agreement, the deposit schedule, and the builder’s track record before you commit.