Buying a preconstruction condominium in Toronto can be an exciting opportunity, particularly in a city shaped by long-term planning, dense urban development, and evolving neighbourhoods. For many buyers, preconstruction offers the chance to secure a new home in a growing community, often years before completion. At the same time, these purchases come with a legal framework that differs meaningfully from resale transactions.
Understanding that framework early on can help buyers move forward with clarity and confidence. Here are some things you’ll want to know:
The Purchase Agreement Is Detailed by Design
Preconstruction purchase agreements are longer and more detailed than standard resale contracts. This reflects the realities of building new communities from the ground up, where timelines, approvals, and construction phases unfold over several years.
These agreements outline deposit schedules, estimated occupancy dates, potential design adjustments, and closing costs. Because of their complexity, many buyers choose to have their agreement reviewed by a real estate lawyer with experience in preconstruction condominiums, helping ensure they understand how the terms may affect them over time.
Ontario’s 10-Day Cooling-Off Period
In Ontario, buyers benefit from a mandatory 10-day cooling-off period after signing a preconstruction condo agreement. During this time, buyers can review the contract in detail, seek legal advice, and reconsider their decision.
If a buyer chooses to withdraw within this window, the agreement can be cancelled and the deposit returned in full. This period is built into the process to give buyers space to review the details carefully before making a long-term commitment.
Deposits and How They Are Held
Preconstruction condos typically require deposits to be paid in stages over time. In Ontario, these deposits are generally held in trust and may be protected under provincial legislation and warranty programs.
Deposit structures can vary by project, so it’s important to understand how funds are held, when they’re released, and what protections apply. Clear deposit terms help provide reassurance throughout the construction period.
Timelines, Delays, and Occupancy
Construction schedules for preconstruction projects are based on estimates rather than fixed dates. Purchase agreements typically include a range of possible occupancy dates and outline circumstances under which timelines may be extended, such as construction delays or regulatory approvals.
It’s also important to understand the distinction between interim occupancy and final closing. Interim occupancy allows buyers to move into their unit before the condominium is formally registered, while legal ownership transfers at final closing.
Interim Occupancy and Associated Costs
During interim occupancy, buyers pay a monthly occupancy fee, which usually includes estimated interest, property taxes, and maintenance fees. These payments do not go toward the purchase price of the unit.
Because the interim occupancy period can vary in length, understanding how these costs are calculated and budgeting for them in advance can help avoid surprises.
Design Changes and Project Adjustments
Most preconstruction agreements allow for reasonable changes as a project progresses from early planning to completion. These may include minor adjustments to unit layouts, dimensions, materials, or shared amenities.
Agreements typically outline what types of changes are permitted and when buyer notification or consent is required. Reviewing these provisions helps align expectations between early marketing materials and the finished building.
Closing Adjustments and Final Costs
At final closing, buyers may be responsible for additional costs such as development charges, utility connection fees, warranty enrolment, and legal fees. Some of these costs are capped in the agreement, while others may be estimated.
Understanding which adjustments apply – and whether limits are clearly defined – allows buyers to plan ahead with greater certainty.
A Thoughtful Approach to a Long-Term Decision
Buying a preconstruction condo in Toronto is a long-term decision, shaped by both legal detail and careful planning. Taking the time to understand how these agreements work allows buyers to focus on what matters most: choosing a home that fits their life, their timeline, and the city they want to be part of.
Questions? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!