Buying a pre-construction condo in Ontario can be an exciting opportunity, offering a brand-new living space, modern amenities, and often, the chance to buy at a lower price before the market rises. However, what many buyers don’t realize is that pre-construction purchases come with unique legal risks that are very different from buying a resale property. If you’re thinking about buying a condo that hasn’t been built yet, it’s essential to understand your legal rights and responsibilities before signing anything.
In 2025, the popularity of pre-construction condos remains strong, especially in cities like Toronto, Mississauga, Vaughan, Ottawa, and Kitchener-Waterloo. Developers continue to launch new projects, but buyers must be cautious. The glossy brochures and showroom tours don’t always tell the full story. A real estate lawyer plays a critical role in reviewing the agreement of purchase and sale (APS), identifying hidden costs, and making sure your interests are protected.
One of the most important aspects to understand is the cooling-off period. In Ontario, the Condominium Act gives buyers of new condos a 10-day cooling-off period after signing the APS. During this time, you have the legal right to cancel the purchase with no penalty. This is your window to consult a real estate lawyer and have the agreement reviewed, something we strongly advise every buyer to do.
Why is legal review so important? Because pre-construction agreements are written by the developer’s lawyers and often heavily favour the builder. These contracts are typically 30–60 pages long, full of legal jargon, and include provisions that may surprise first-time buyers. For example, many pre-construction agreements allow the builder to extend the occupancy date, make design or layout changes, or even cancel the project altogether.
Another major concern is hidden or extra costs. The purchase price you see in the sales office may not include closing adjustments such as development charges, utility hook-up fees, HST (if applicable), Tarion enrollment fees, or fees for appliances and upgrades. These charges can add tens of thousands of dollars to your final closing bill. A real estate lawyer will review your APS, flag these clauses, and can help you negotiate a cap on closing costs where possible.
It’s also important to understand the two-stage closing process common with new condos: interim occupancy and final closing. During interim occupancy, you may be required to move in and begin paying an occupancy fee—even though you don’t yet own the unit. You won’t receive the title to the property until final closing, which could be months (or even a year) later. This can be frustrating for buyers expecting a straightforward closing and ownership timeline.
Additionally, pre-construction purchases often raise questions around assignment rights. An assignment is when you sell your contract to another buyer before final closing. While this can be a profitable strategy in a rising market, many developers either prohibit assignments or charge high fees to allow them. If you think you might want to assign your unit, you need to ensure your agreement includes assignment rights and understand the legal implications and tax consequences.
In today’s market, where construction delays, rising interest rates, and unexpected builder changes are common, having a knowledgeable real estate lawyer by your side is more important than ever. At Delaney’s Law Firm, we help clients across Ontario navigate the complexities of pre-construction condo purchases, from reviewing your agreement and explaining your rights to protecting you during closing and beyond.
If you’re planning to buy a pre-construction condo in Ontario, don’t sign anything without a legal review. We offer services for agreement review and are here to answer your questions during the 10-day cooling-off period or at any stage of your purchase.
Contact us today to ensure your new condo purchase goes smoothly without legal or financial surprises down the road.
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