Buying a pre-construction condo in Ontario: where an agent fits and what to read first

This is general information, not financial or legal advice. A pre-construction agreement is a long, binding contract, so have a lawyer review it before you sign.

Searches for pre-construction agents are modest in our data, but the questions are heavy ones. You commit years before you get keys, and the paperwork is different from buying a finished home.

What is different from a resale

When you buy a resale, you see the home, inspect it, and close within weeks. With a presale you sign a contract for a unit that does not exist yet, and the wait can be long. The things that matter change.

Topic	Resale	Pre-construction
What you see	The actual unit	Plans, models, renderings
Contract	Agreement of purchase and sale	Builder’s agreement, often long and one-sided
Timing	Weeks	Often years, and dates can move
Deposits	Usually one payment	Often a schedule of instalments
Before closing	Inspection	Occupancy, then final closing
Warranty	Not applicable in the same way	New home warranty program

Read before you fall in love

Sales centres are designed to be persuasive. Take the agreement home. Look for:

• The deposit schedule and when each payment is due
• The estimated occupancy and closing dates, and what happens if they change
• Which costs are added at closing
• Rules on assignment, if you might want to sell before closing
• What the warranty covers and how to claim

Our glossary has short entries on interim occupancy, assignment sales and Tarion. Read them before your lawyer meeting so the discussion is faster.

Where an agent helps

An agent can explain how presales work, compare projects, flag questions to raise and coordinate with your lawyer. They cannot change a builder’s terms. Ask whether they are paid by the builder, by you or both, and whether that affects who they act for. A written answer is better than a verbal one.

Questions for an agent

1. How many pre-construction purchases have you worked on?
2. Who pays you and how?
3. Which documents should I read before I commit?
4. What has gone wrong for buyers in past projects, and how was it handled?
5. How would you help if the closing date moves?

Be careful with anyone who talks only about price growth. Nothing about a future value is guaranteed.

Budget beyond the price

Presales add their own costs at or near closing, and some builders charge for items that are included in resale deals. Our closing costs guide lists the general categories, and your lawyer can confirm which apply to the project you are considering. If you plan to rent the unit out, the guide to hiring an agent for an investment property covers that side.

Where to look

You can browse agents who work with new construction and presales in the new construction and pre-construction category. The scoring method explains how profiles are built, and the home page shows the other categories.

Slow down at the contract stage. Everything exciting about a presale is easier to enjoy once the paperwork has been understood.

Think about the long wait

A purchase that closes years from now depends on your finances at a later date, not just today. Consider how your income, savings and lending options could change, and what you would do if closing costs or dates move. Talk through this with a lender and a lawyer before you commit, and keep copies of everything the builder sends you along the way.