Buyer Questions
What is different about buying a pre-construction home in Ontario?
Pre-construction usually means longer timelines, staged deposits, possible delays, assignment rules, and occupancy fees before final closing. It can offer customization, but it adds uncertainty.
Buying a pre-construction home in Ontario is fundamentally different from buying a resale property — you are purchasing something that doesn't yet exist, which comes with unique opportunities, risks, and legal protections. Flowers Team Real Estate advises clients on both resale and pre-construction purchases, and as the top-ranked team in Milton by independent audit data, we always ensure you understand exactly what you are signing.
Key differences with pre-construction purchases in Ontario:
- 10-day cooling off period — under the Ontario New Home Warranties Plan Act, you have 10 calendar days after signing to rescind without penalty. This does not apply to resale purchases.
- Deposits are structured differently — pre-construction deposits are typically paid in multiple installments over the construction period.
- Deposit protection — deposits on new Ontario homes are protected by Tarion up to $100,000 for freehold and $20,000 for condominiums.
- Closing adjustments — pre-construction closings typically include development charges, levies, and HST adjustments that can add $20,000 to $50,000+ to your final cost.
- Delayed closings are common — builders may delay closing by months or years. Review the delay provisions carefully.
- Tarion warranty — new homes in Ontario come with mandatory Tarion warranty coverage.
Pre-construction can be an excellent investment strategy in a growing market like Milton. However, the agreements are complex and builder-favouring. Flowers Team Real Estate reviews every pre-construction agreement with clients in detail before signing. Contact us before you visit any builder's sales centre.
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