*Disclaimer, we are not proving expert tax and legal advice, the information below are guidelines; you should consult a lawyer and or accountant.

ANY and ALL of your questions are always welcomed at any stage of the process!

Register with Us

Registering with us enables us to send you all the latest information about pre-construction developments in the GTA, Canada, and even the U.S. We will keep you updated with projects coming soon launches, or even new sales incentives. You will also receive everything you need to purchase a unit including brochures, price lists, and floor plans. Plus, you will be privy to our insights of the project.

Select the Location or Development That Works For You

Location can be subjective, perhaps you like a specific area that is close to where you are living now, or where you want to retire, or move to. You may want to move into the unit yourself as an end user, buy it for your child(ren), or as an investment property; all these factors impact where your preferred location(s) will be.

Choose A Floor Plan

Looking at all the different floorplans, unit styles, and sizes to determine which unit would be ideal for your lifestyle or investment purpose may be overwhelming. That is why, we work with you.

Please note that most developers ask that you choose your top 3-unit choices.  Working together at this stage we may be able to offer you some insight that you or we may have not thought of.

Submit A Worksheet

What is a worksheet? It is a form that lets us know that you are interested in purchasing a unit. The document needs to be filled out, and will need to contain your personal information, such as address, email address, occupation, employer, telephone number, and your unit choices and floor choices. Along with your worksheet, you will need to submit a government issued Identification (ID) in order for us to submit it to the developer. Once they receive it, they will timestamp it, and allocate units in order as they receive them from all the platinum agents. With this step completed, and when we receive an allocated unit for you, we will guide you through the next steps.

Sign the Agreement Of Purchase And Sale

After submitting your worksheet, as soon as we hear from the builder if you have been allocated a unit, and if you are still wanting to make the purchase, we will set up an appointment time for you to sign or e-sign the documents. Due to varying COVID-19 restrictions, this may be a virtual meeting, or in the actual sales office.

You will need to provide a bank draft made out to the lawyer’s name in trust of the developer to sign for your unit. Also, your government issued ID, along with your cheque book, will be required to verify who you are, and to write post-dated cheques for the ensuing deposits. 

10-Day Cooling Off Period Starts

Once the Agreement of Purchase and Sale (contract) has been signed, by law, you have a “10-day Cooling Off Period,” this is when you should take it to a lawyer experienced with pre-construction for their review. Please remember to send them all the incentives being offered by the developer. The unit is held for you by the developer until this 10-day period has ended. In fact, they do not deposit the bank draft you submitted until after this period of time.

If for whatever reason you do not wish to proceed with the purchase, you can cancel (rescind) the contract within the 10 days, with no financial penalties. Please speak to your agent, and they will facilitate the cancelation with the developer, and have your post-dated cheques and bank draft returned to you.

During the 10 days, we suggest that you obtain your mortgage pre-approval letter or commitment (comfort) letter. You MUST satisfy the builder’s request, as this IS a requirement to go forward with the unit. If you require assistance with this aspect, please let us know sooner rather than at the last minute. 

For more info on the 10-Day Cooling off period, please see “What is the 10-day cooling off period” under our FAQs

Obtain a Mortgage Pre-approval (MPA)

The builder requires you to obtain a Mortgage pre-approval letter or commitment (comfort) letter within 30 days of the signed contract. Builders vary on what they require, some insist on a big five bank approval, while others are satisfied with a comfort letter.

The letter is NOT a mortgage, as the building has mot yet been registered; therefore you cannot officially register a mortgage.

Congratulations! Now you have purchased your unit! 

Choose Suite Features, Finishes and Colour 

As the building is being built, you will be contacted via email by the décor centre regarding choosing your finishes, colours, and any and all upgrades they offer.

Pre-Delivery Inspection (PDI)

The PDI is a walk-through of your condo unit upon completion. At this time, you will inspect the unit for the first time before you move in, with a representative of the builder for any items that may have deficiencies, issues, or the work is simply incomplete. Please make sure to take notes and pictures for your own reference. 

Interim Occupancy 

Interim Occupancy is the period prior to Final Closing. Your lawyer will contact you and you will receive the keys to your unit, however, ownership has not yet been transferred from the builder.

This is the stage prior to the final closing. When your lawyer contacts you, at this time you will be required to pay any outstanding deposits, as well as provide post-dated cheques for your occupancy fees (“rent” to the builder). At this stage, you can move in or rent the unit, but you do not own your unit yet, as the building has not been completed nor registered. As the building may not be fully completed, there will still be some interior construction of upper floor units. During this period, you have no mortgage obligations but again, you will be responsible for paying the interim occupancy fee “rent” to the builder comprised of 3 things: interest on the balance due of your purchase price, property tax, and maintenance fees.

For more information on costs, and how interim occupancy works, please refer to our FAQs under “Interim Occupancy Everything You Need To Know”

Final Occupancy/Closing

Leading up to final occupancy, your lawyer will contact you again. You will require your mortgage at this time, as well as pay for closing costs and disbursements. At this time, is when you will be signing all the documents, and when you are granted legal possession of the unit, as title is officially transferred to you. Your lawyer will advise you of what you will need to do ad bring.

For a list of all your anticipated closing costs, (there are MANY) please refer to our FAQs under “Closing costs and adjustments for pre-construction condos”


Your purchase agreement contains important information about your rights, your builder’s rights, your unit, and the project. To ensure that you are protected and understand exactly what you’re signing up for, you should have your agreement carefully reviewed by a lawyer who is experienced in pre-construction condominium transactions. Also keep in mind that you have an initial 10-day period to cancel your purchase under the Condominium Act, 1988. So, if on further review you decide that you no longer wish to go through with your purchase, you’re able to terminate your agreement within that period and get your deposit back.

For projects or phases of a project which go to market after January 1, 2020, all agreements of purchase and sale for condo buyers will include an information sheet at the front of the purchase agreement that outlines some of the key potential risks of buying a pre-construction condominium. These may include potential early termination conditions such as reaching a minimum sales threshold for the project to proceed, the developer securing necessary financing for construction and completion of the project, and obtaining the required approvals from the municipality.

Since a condominium project requires a lot more time to complete than a single-family home, the potential for construction delays is much higher. When it comes to setting your move-in, or “occupancy date,” chances are your builder will set a Tentative Occupancy Date. This allows them to extend the date multiple times provided they give you enough advance written notice for each delay. You can review the addendum attached to your purchase agreement to understand how occupancy dates may be extended, when you can terminate your agreement because of delay, and when you might be eligible under the warranty for compensation due to delay.

There’s always a risk that a condominium project could get cancelled. Some of the most common reasons for project cancellations include insufficient sales, lack of funding, and failure to obtain development approvals. Review the addendum attached to your purchase agreement to understand the early termination conditions that, if not satisfied, may result in the project being cancelled. If a project gets cancelled, you are eligible to receive your deposit back, including any additional payments you made for upgrades. Deposits must be placed in trust and if payments are not refunded, you’re eligible for protection from  Tarion of up to $20,000. For more information about condominium cancellations, please visit Tarion’s Condominium Cancellation page.

The period of time between your move-in date and the day you take ownership. This allows a builder to focus on the common elements before the building is registered.

Although you may be able to take occupancy of your unit, you do not officially own it until the entire project is registered with the municipality. The time in between is known as the Interim Occupancy Period. During interim occupancy (which can last anywhere from a few months to more than a year) you must pay a monthly fee to your builder that covers three things: interest on the unpaid balance of your unit, estimated municipal taxes for your unit, and maintenance expenses.

If you are among the first to be granted interim occupancy, you will be living in your unit while the rest of the building is being completed. As a result, you should expect to deal with construction related issues such as noise, debris, and disruptions. Also bear in mind that some of the amenities you are looking forward to using, such as a pool or fitness room, may not be ready for some time.

​​​​​Before you take possession of your new home, your builder is required to conduct a pre-delivery inspection, or PDI.  The PDI is a very important step in the new home buying process, so please take some time to read the information below.  You can also check out Tarion’s helpful PDI Pointers video series.

A PDI is one of your first opportunities to view your completed home. Your builder will guide you through a comprehensive inspection and may demonstrate how to operate the home’s systems such as the ventilation, plumbing and heating.​

Any item that is damaged, incomplete, missing or not operating properly should be noted on the builder’s PDI Form to verify that these conditions existed prior to occupancy. If something has not been installed or completed, this should be noted as well.  When the inspection is over, you or your designate will be asked to sign the PDI Form.

Note:  If you intend to send a designate to conduct the PDI in your place, you should provide your builder with written authority to sign the PDI Form. This can be done by filling out the Appointment of Designate for the Pre-Delivery Inspection Form.

The PDI provides an opportunity to record your home’s condition before you move in. Any issues should be noted on a PDI Form and ideally your builder will correct them right away. The PDI Form does not represent a request for warranty service, so if you fail to note an item this does not necessarily impact your warranty coverage. However, the PDI Form is a useful piece of evidence if you have a conciliation inspection:  if the problem concerns a damaged or missing item, it may be difficult to establish that this condition existed before you moved in if it is not noted on the PDI Form.

If when you take possession you notice a damaged or missing item that was not noted on your PDI Form, document and report the condition immediately by, for example, taking photographs and sending an e-mail to your builder.  This record will assist in establishing that the condition existed when you took possession of your new home.

Any items that are not corrected by the time you move in need to be listed on a 30-Day or Year-End Form.  These forms represent a request for warranty service and listed items that are covered under warranty must be addressed by your builder within a specific timeframe.

Condominium unit homebuyers complete a PDI in the same way as other new homebuyers for all matters relating to the condominium unit.

You may wish to print a copy of the Tarion PDI Checklist or the brochure Getting Read​y for the Pre-Delivery Inspection to help guide you through the process.

When you buy a pre-construction house or condominium unit, you and your builder agree to a date by which you’ll be able to move in.  For most homes, this date is the closing date.  For condominiums, it is the occupancy date. 

For various reasons, this date may change.  Delays in your closing or occupancy date can cost you in added accommodation, moving and storage costs.  Your new home warranty’s delayed closing/occupancy coverage ensures that you are compensated if your builder does not provide sufficient advance notice of a delay or if the completion of your home is delayed beyond a certain date. 

The Addendum to your Purchase Agreement 

When signing the purchase agreement for your new house or condominium unit, remember to carefully read the Tarion Addendum attached to the agreement. The first page of the Addendum is a Statement of Critical Dates, which clearly indicates the date your builder expects to finish your home and the latest possible date for permitted extensions of that date.

To quickly and easily generate a Statement of Critical Dates, use Tarion’s online Critical Dates Calculator.

You should think twice before you sign a revised agreement with a new closing or occupancy date.  If you sign an amendment or other agreement with your builder, you might waive your right to delay compensation under the warranty. Ask your lawyer for advice. 

As a purchaser, you do have the right to do that.  Your Statement of Critical Dates indicates an “Outside Closing/Occupancy Date.” If your home is not completed by that date, a 30-day Purchaser’s Termination Period is triggered during which you can terminate your agreement.

The compensation under the warranty is $150 per day to a maximum of $7,500.

$7,500 is the maximum delay compensation you’re entitled to under the warranty, so it’s the most that you can receive with Tarion’s help. This doesn’t prevent you from seeking additional compensation from your builder.

Approach your builder first. Your builder provides the new home warranty to you, and is required to provide compensation for a delay if you are entitled to it.  If your builder does not pay and you need to make a claim to Tarion, you can submit a Delayed Closing/Occupancy Claim Form to Tarion within one year of the date you take possession of your new home or occupancy of your condominium unit. 

It depends on the type of expense.  You are not required to provide receipts for living expenses, such as meals and accommodation. You will need to provide receipts if you are claiming expenses such as additional moving and storage costs.  If you are unsure, contact Tarion for further assistance.  

If you have any other questions, please send us an email at customerservice@tarion.com.

It is selling your pre-construction (precon) condominium unit before it closes, and it is a trickier transaction than some realtors/brokers let on. Please see “What is an Assignment below for in-depth detail.

Here’s a plausible situation: 

I bought a condominium unit, pre-construction. My financial circumstances have changed significantly, and I now need to sell it. What should I know?

Just so we are all talking about the same thing, entering an agreement to purchase a pre-construction condo is when you contractually commit to buy a condo before or during its construction — but you would not move in until it is complete, or sufficiently complete (aka as the occupancy phase) to do so.

This is a very tricky topic and initially, you should consult with a real estate lawyer who actually understands and is familiar with precon.

As many pre-construction condo buyers may know, many things can happen between the time you buy and the time you take possession and own it. From the builder’s perspective, there may be construction delays and sometimes projects are cancelled. Buyers face different risks and all of the research in the world cannot protect a buyer from an unanticipated change in their own personal circumstances.

If you are at the point where you are thinking of trying to sell the condo before you take possession, you are most likely embarking on what is referred to as an assignment. 

Below are the typical phases of a precon condo launch. Please note; that every developer and condo launch can and may differ. However, for the most part, the prices will increase as the selling phases progress. 


It is exactly as it sounds, in this phase, the developer’s friends and family are invited to purchase units before anyone else, including realtors, 


If you have been looking for precon condos, by now you may have heard terms “Platinum Agent” and/or “Platinum Launch.” Ideally, this is the best chance for buyers/investors to purchase a unit. Other than the friends and family phase, the platinum phase will offer the best pricing, offers the best incentives, as well as the best choice of units, and floors.


VIP agents are invited to the second phase of sales. A lot of units may have been sold by the Platinum agents. As such, your selection of units may be more limited. Prices have generally increased, while the incentives are usually not as good, or have been removed. Remember though: every developer and project can differ, and sometimes the incentives can remain the same.

PHASE 4 – Toronto Real Estate Board (TREB) AGENT LAUNCH

At this phase, developers allow investors/buyers who are working with any and all TREB member agents to purchase a unit. By this phase, much of the building has been sold, and prices have increased again, but at this time, you may be offered incentives that were not provided previously. 


This phase is for those who have registered on the actual developer’s website. They will invite you to purchase with them directly. Please note, that at this phase, you do not require an agent to purchase, but it is recommended, as they can guide you through the process on your behalf. 


As the name suggests, this is when anyone can invest/buy. Keep in mind that there have already been five phases before you have had the opportunity to purchase, therefore, the unit selection will be sparse, and prices will have increased significantly. You may be offered more incentives, as the developer has already significantly increased pricing and this stage, so they can afford to.

Please note: The terms Development charges or development levies are interchangeable.

“They are fees collected from developers at the time a building permit is issued, to help pay for the cost of infrastructure required to provide municipal services to new development, such as roads, transit, water and sewer infrastructure, community centres and fire and police facilities.” 

The fees are sometimes charged separately, or combined with the development charges above. The fees for an assortment of levies are payable to the city whenever a new space is developed. The developers’ requirement to pay the municipality for Education Levies, Community Improvement Fees (community resources and/or public art projects), Park Levies (new green/park space) if applicable, are all charged to the developer, – who then applies it to the buyer’s costs.

The more capped development charges/levies, the better it is for you as the purchaser!


According to the city of Toronto, The term “Section 37” refers to the section of Ontario’s Planning Act which allows the City to ask for benefits to construct or improve facilities when a development requires a Zoning By-law amendment. 

Under Toronto’s Official Plan, developments that exceed a threshold of 10,000 square metres of gross floor area, and where the application increases the permitted density by at least 1,500 square metres, and/or significantly increases the permitted height, are typically subject to Section 37 provisions 

Section 37 benefits differ from other revenue tools available to the City of Toronto. 

  •       Section 37 benefits cover a variety of community services and facilities, allowing greater flexibility than Development Charges and Parkland Contributions. Typical benefits are outlined in the Official Plan’s Section 5.1.1 or in Secondary Plans. 
  •       Section 37 cash-in-lieu benefits are held in a separate reserve fund account, while other revenue sources are collected by the City and distributed centrally. 
  •       As Section 37 is intended to address the needs created by growth, the Planning Act requires benefits to have a reasonable geographic relationship with a proposed development.

Section 37 benefits are secured by the City through two different methods, in-kind and cash-in-lieu. 

  •       In-kind contributions occur where a development applicant agrees to directly provide the negotiated benefit, such as dedicating physical space within a building for use by non-profit groups. 
  •       Alternatively, a development applicant can provide cash-in-lieu of the negotiated benefit, transferring responsibility for implementation to the City. Cash-in-lieu can occur either as a single contribution towards a community benefit or be saved for future use in cases where the City is pooling funds to achieve a major investment, or a number of identified benefits. 
  •       Over the past five years, the City of Toronto has secured approximately 850 Section 37 benefits, 55% of which were in-kind, and 45% of which were cash-in-lieu contributions valued at over $200 million.



So essentially, the city is condoning cash payments AKA legal bribes from builders in exchange for zoning approvals, or extra density (more floors added) Ie: a developer may pay the city $3million to allow them to build 35 storeys instead of 25. And guess who ends up paying for the cost of those payments to the city? The buyer. 

Under section 73 (2) “Notice of rescission,” of the Condominium Act, all buyers who purchased from a developer/builder are automatically entitled to have a 10-day cooling-off period, in which you can rescind (also known as cancel or revoke) your agreement of purchase and sale (contract). This 10-day period begins immediately when you receive the agreement of purchase and sale, disclosure documents. 

Please note: the 10 days DO include weekends, and not just business days. For holidays, it is best to ask your agent, as every developer works differently.

This 10-day period is when you should send your agreement to a lawyer who is familiar with the preconstruction process

 And keep in mind, that the cooling-off period does not apply to other types of home purchases, including assignment sales or pre-construction freehold homes, and sometimes townhomes.


Ontario Builder Directory

This directory is a searchable database that provides information about Ontario’s approximately 5000 home builders and vendors provided by the Home Construction Regulatory Authority. As Ontario’s home building regulator, HCRA is the official source for all licensing information about home builders and vendors.

You can begin your search right away if you know the name of the builder you are searching. Alternatively, you can search by location.


Under the new home warranty, purchasers of new homes (not including contract homes) are entitled to statutory deposit protection if:

  • the builder goes bankrupt resulting in the transaction not closing;
  • the builder fundamentally breaches the purchase agreement resulting in the transaction not closing; or,
  • the purchaser exercises a statutory right to rescind the purchase agreement before closing.

As of January 2018, deposit protection includes other payments made by the purchaser, such as those made for upgrades and extras.

Deposit protection does not apply to any payments made to reserve or hold a home or a condominium unit before the purchase agreement is signed.

Deposit protection for freehold homes 

For purchase agreements signed between February 1, 2003 and January 1, 2018, deposits are protected up to a maximum of $40,000.

For purchase agreements signed on or after January 1, 2018, deposit coverage depends on the purchase price of the home:

  • If the price of the home is $600,000 or less, the purchaser’s deposit is protected for up to $60,000.
  • If the price of the home exceeds $600,000, deposit protection equals 10% of the purchase price up to a maximum of $100,000.

Deposit protection for condominium units

Condominium unit deposits must be placed in trust under the provisions of the Condominium Act. If you terminate a purchase agreement, you must return the purchaser’s deposit in full within 10 days. Tarion provides deposit protection of up to $20,000 plus a limited amount of interest that has accrued.

Deposit refund claims

If you fail to refund a deposit to a purchaser, the purchaser may make a deposit refund claim to Tarion. Tarion will provide you with copy of the documentation submitted by the purchaser and give you an opportunity to respond.


Under the new home warranty, purchasers of new homes (not including contract homes) are entitled to statutory deposit protection if:

  • the builder goes bankrupt resulting in the transaction not closing;
  • the builder fundamentally breaches the purchase agreement resulting in the transaction not closing; or,
  • the purchaser exercises a statutory right to rescind the purchase agreement before closing.


As of January 2018, deposit protection includes other payments made by the purchaser, such as those made for upgrades and extras.

Deposit protection does not apply to any payments made to reserve or hold a home or a condominium unit before the purchase agreement is signed.

Deposit protection for freehold homes 

For purchase agreements signed between February 1, 2003 and January 1, 2018, deposits are protected up to a maximum of $40,000.

For projects or phases of projects that go to market after January 1, 2020, condo buyers will benefit from more information that will help ensure they can make a more informed purchase. Specifically, this requirement applies to any project or phase of a project where the first agreement of purchase and sale is signed after January 1, 2020. 

All agreements of purchase and sale will include an information sheet at the front of the purchase agreement that outlines some of the key potential risks of buying a residential condominium unit in a pre-construction standard or phased condo project. These may include potential early termination conditions such as reaching a minimum sales threshold for the project to proceed, the developer securing necessary financing for construction and completion of the project, and obtaining the required approvals from the municipality. 

Deposit Refunds

If a project is terminated, the vendor is obliged under Condominium Act to refund all monies paid by the purchaser, plus interest calculated in accordance with the Condominium Act (see section 82 and section 19 of O. Reg. 48/01). Under these provisions of the Act, the interest required to be paid is 2 percentage points less than the Bank of Canada rate which is recalculated every 6 months.  Since 2008, that bank rate has been less than 2% and thus effective interest rate payable has been 0%.

There are several layers of protection for deposit monies paid in relation to a condominium unit purchase.

First, the Tarion Addendum, which is required to be attached to every agreement of purchase and sale for a condominium unit specifically addresses this situation. The Addendum requires that if the purchase agreement is terminated that the vendor will refund all the monies paid by the purchaser including any monies paid for upgrades and extras, within 10 days.

In addition, under the Condominium Act, any monies received by the vendor of a condominium project must be held in trust. This includes deposit amounts and any other payments made under the purchase agreement, such as for upgrades and extras. The vendor does have a right to have some or all of the deposit monies released from trust but only if the vendor has arranged for acceptable security to protect the return of deposit obligation.

If for some reason the vendor is unable or unwilling to return the deposit, then the purchaser is entitled to turn to the trustee who was obligated to hold the deposit monies in trust. The purchaser can then make a claim to the trustee (usually a lawyer) for return of the deposit from trust accounts maintained by the trustee.

For questions about a condominium project or the condominium cancellation process, please email L&U@tarion.com or call 1-877-982-7466 ext. 3001.

Tarion is a not-for-profit consumer protection organization established by the Ontario government to administer the province’s new home warranty program. For over 40 years, Tarion has served new home buyers and new homeowners by ensuring that one of their life’s biggest investments is protected.  

What They Do:

By law, all new homes built in Ontario are provided with a warranty by the builder. Tarion’s role is to ensure that buyers of newly built homes in Ontario receive the coverage they are entitled to under their builder’s warranty. Tarion’s responsibilities include:

  •       Protecting consumers when builders fail to fulfill their warranty obligations;
  •       Educating new home buyers and new home owners about their warranty rights and responsibilities;
  •       Administering the MyHome online portal, which allows homeowners to manage their warranty and report defects to the builder and Tarion;
  •       Facilitating the fair resolution of disputes between homeowners and builders over warranty coverage, repairs or customer service;
  •       Assessing warranty claims to determine if they are valid either through an on-site inspection or alternative method of investigation;
  •       In cases where a builder fails to address a valid warranty claim, resolving the claim directly with the homeowner either through compensation or repairs by a third party; and
  •       Managing a guarantee fund to protect new home buyers, out of which compensation for warranty claims is paid.

Effective February 1, 2021, Tarion’s previous licensing responsibilities have been transitioned to the Home Construction Regulatory Authority. The HCRA is now responsible for regulating new home builders and vendors in the province. To learn more about the HCRA, visit www.hcraontario.ca

With every pre-construction (precon) condo unit purchase, you will be signing or e-signing a document entitled an Agreement of Purchase and Sale. Essentially, people refer to it as a contract. 

When purchasing precon condos, you have a 10-day “cooling off” period, otherwise known as a recission period. This 10-day period begins immediately when you receive the agreement of purchase and sale, disclosure documents. Please note: the 10 days DO include weekends, and not just business days. For holidays, it is best to ask your agent, as every developer works differently.

Your lawyer should provide you with a summary of your approximate closing costs and the HST implications.

 This 10-day period is when you should send your agreement to a lawyer who is familiar with the preconstruction process, as they can review the contract, and protect your interests. Please note; the majority of contracts are standard, and used by most developers. 

 Please be sure to send your lawyer all the documents such as, the agreement, and any incentives that are being offered, so they can cross correlate it.

And keep in mind, that the cooling-off period does not apply to other types of home purchases, including assignment sales or pre-construction freehold homes, and townhomes that are not part of a condominium project.

You may be eligible for a GST/HST New Residential Rental Property Rebate (NRRP Rebate) also known as the Condo HST Rebate for up to $30,000. For people living in their new home, it is much easier to claim your partial refund. If you are renting out your newly bought home, you can claim your rebate through the HST Rental Rebate program. 

Who is Eligible for a Condo HST Rebate/ GST/HST Rental Rebate?

Most Ontario residents know of the HST home for principal residence. This is offered only to homebuyers who live in the home primarily. Many people, however, are not aware of the GST/HST Rental Rebate offered to purchasers intending to use the property for rentals.

If you have purchased a newly built condo as an investment property, you can apply for an GST/HST New Residential Rental Rebate. There are 2 criteria: 1)  You have at least a one-year lease agreement. 2) The final closing took place in the past two years.

On closing, most new property buyers are asked if they intend on making it their principal residence. This is because builders include a portion of an HST reduction for principal residences in the original purchase price. This can be a credit of up to $30,000 of the total HST payable on the property. Some homebuyers are confused when they are told that the final purchase price includes the HST. Be aware that most builders present prices that include HST, minus the new housing rebate for primary residence homebuyers. Since many purchasers, especially condo investors do not move into their units, they are required to add extra HST on closing.

Please note: the HST Guidelines are stipulated by the Canada Revenue Agency and can change at any time.

Most recently, the CRA is charging the HST to any and all agreements that have the “Right to Lease” clause in their contract.

 If you need any assistance with your rebate, please let us know and we can assist you.

Multiple Purchasers But Only One is Living There

At final closing, some purchasers need to add additional parties to qualify for a mortgage. If the party is made up of close, blood family members, but only one will be living there, the party is treated like a Primary Place of Residence Purchaser. If the party is made up of what the government deems distance relatives, such as an aunt or uncle, or a friend, the purchaser has to pay the HST Rebate amount and cannot apply for the rebate to get it back.

Please note: the HST Guidelines are stipulated by the Canada Revenue Agency and can change at any time.

Many pre-construction (precon) condo buyers often wonder if they need a mortgage pre-approval for a precon condo purchase. The answer? YES. The condo builder/developer requires a mortgage pre-approval from you, to make sure that you will not default and have the affordability to finalize on the property later. Generally, the builders require a mortgage pre-approval within a period of 30- 60 days from the day of your purchase.

We recommend buyers obtain the pre-approval in the 10-day cooling period because, during this period, any trouble with financing or obtaining an approval will allow the buyer(s) the chance to cancel or rescind their purchase without any obligation.

Depending on the builder, they may require a MPA from one of the big five bank. While some builders, will accept a commitment or comfort letter, if you have a long-standing, and good relationship with your bank, the branch manager or a mortgage manager can write you up a letter of commitment. Similar to a mortgage approval, but less formal and based more on the ‘good faith” of your relationship with the bank and their knowledge of your previous and current personal finances.

When you purchase a pre-construction condominium you will be given two different dates: the interim occupancy date and the closing date. Interim occupancy is unique to pre-construction condos, and the process may be foreign and confusing. Please note this is the phase BEFORE you have title to your unit, also known as Final Closing.

Here’s your comprehensive guide on what to expect:

Interim occupancy is the period of time between the day you occupy your unit (move in) and the day you take ownership (close). The “Interim occupancy” allows a builder to finish construction while also organizing an orderly move-in process for what could be hundreds of buyers. And with so many moving parts, this takes time, coordination and money to be done properly.  

During this time, you are obligated to pay “occupancy fees,” or a “rent” to the builder. It is important for us to note that the occupancy fees DO NOT go towards the purchase price or deposit, nor do they go towards the final purchase price. This is why occupancy fees are similar to paying rent.

Interim occupancy takes place as soon as the city deems the building is safe and ready for homeowners to move in. Typically, this period can last between three to a year or more, depending on the project. 

During this time, the building is still under construction. Whether you choose to live in your suite at this time or rent it out is up to you; however, all purchasers MUST pay the monthly fee during this time. 

Usually, units on the lower floors will begin to qualify for occupancy, which allows moving in and living at the unit an earlier date, but you will be paying occupancy fees for a longer period of time. Thus why many buyers prefer purchasing units on higher floors, so that their move-in-date will be closer to their final closing.

Another important part to take into consideration of interim occupancy is the fact that as soon as you have occupancy of your unit, you TARION warranty begins. Therefore, your 1-, 2- and 7-year warranty starts counting down. In fact, you can fill out your first warranty form within the first 30 days of occupancy. However, the warranty on the common elements of your building will not begin until your condominium is registered.

How Interim Occupancy Fees (“Rent”) are Calculated

The fee is made up of three parts: interest on the unpaid balance of the purchase price of your condo, an estimate on the municipal taxes for your unit, and a projected common expense contribution to keep the building running. The fee is usually charged monthly and requested in the form of post-dated cheques made out to the developer. 

For more details, refer to Section 80(4) of the Condo Act.

The Developer’s Responsibilities During Interim Occupancy

During the interim occupancy period, the builder has a number of regulations that must be adhered to. This includes providing the services that the condo corporation will take over once the building has been registered, such as garbage disposal, concierge services (where applicable), property maintenance (HVAC, fire alarms, etc.). 

To view the full list of the builder rights and responsibilities, check out section 80(6) of the Condo Act.

It’s a misconception that a builder profits or has any benefit to gain from extending this phase in the building of a condo. In fact, there are stipulations in the Condominium Act around the calculation of the occupancy fees which attempt to prevent the developer from making a profit. Furthermore, it is in a builder’s best interest to transfer title as soon as possible. 

Builders make their money when they are able to provide title and register the project – which can only be done when the building is complete.  

How Do I Know When Interim Occupancy Starts?

Once your lawyer receives the Interim Statement of Adjustments from the developer, they should schedule an appointment to meet with you. You will then sign the Interim Closing papers and provide cheques to pay for any further deposit payments and/or Interim Occupancy Fees.

On the actual day of your interim closing, normally you will be notified that your keys are ready for pickup, from the developer later that afternoon. 

  •       The One Year Warranty addresses construction practices and defects, unauthorized substitutions and the fitness of a home for habitation, among other points. 
  •       The Two-Year Warranty addresses topics such as defects and violations of the Ontario Building Code to do with health and safety. 
  •       The Seven-Year Warranty concerns major structural defects.


Items/Deficiencies Not Covered Under Tarion?

 The following matters are not covered by the statutory warranties:

Normal Wear and Tear

  •       Normal shrinkage of materials that dry out after construction such as nail pops or minor concrete cracking
  •       Settling of soil around the house or along utility lines (other than subsidence beneath the footings of the home)
  •       Scuffs and scratches to floor or wall surfaces caused by moving, decorating, or day-to-day use of the home by the homeowner

Damage Caused by Improper Maintenance

  •       Dampness or condensation caused by failure to maintain proper ventilation
  •       Damage resulting from improper maintenance

Damage Caused by a Third Party

  •       Damage caused by municipal services or utilities
  •       Damage caused by floods, “acts of God” (see below), acts of civil or military authorities or acts of war, riot, insurrection, civil commotion or vandalism
  •       Damage caused by insects or rodents, unless it is the result of construction that does not meet the Ontario Building Code

Secondary Damage Caused by Defects that are Under Warranty

  •       Personal or property damage, such as personal injury, loss of income and other secondary loss associated with warranted defects or repairs.  (However, your homeowner insurance may cover such secondary or consequential damage.)

Supplementary Warranties

  •       Warranties or agreements provided by your builder over and above the statutory warranties.  Such matters are between the builder and the homeowner and are not enforced by Tarion.

Deficiencies Caused by Homeowner Actions

  •       Alterations, deletions or additions to the home that were made by the homeowner
  •       Changes by the homeowner to the direction of the grading or the slope of the ground
  •       Defects in materials, design or work that was supplied or installed by the homeowner

HVAC Appliances

  •       The seven-year MSD warranty does not extend to appliances that form part of the heating or cooling apparatus, equipment or systems, whether for water, air or other substances, including furnaces, air conditioners, chillers and heat recovery ventilators


When purchasing a pre-construction condo unit, it is extremely important that you know what your approximate closing costs associated with your purchase will be. This will enable you to make sure the purchase is affordable for you, and to prepare your funds for your completion date. 

Please note: We recommend that you take your contract to an experienced pre-construction lawyer within the 10-day cooling off period. After their review, and based on your individual contract, they should be able to inform you of a close approximation of your actual closing costs.

Below is only a guideline of your closing costs on a pre-construction condo unit; every contract is different, so there may be some things that are not relevant, or some items not listed here. As you will recognize from the list below, the closing costs are quite considerable, and what you need to budget and prepare for when closing on your unit.


Land transfer tax must be paid in final registration of a pre-construction condo unit.  In Toronto, you need to pay for both the municipal and provincial land transfer taxes. For example: a $700,000 purchase in Toronto, the land transfer tax will cost you $20,950, while in the rest of Ontario thus far, the land transfer tax is only paid provincially at $10,475.


Most pre-construction developments today offer you capped levies, but not all levies may be capped. Your contract will specify the charges for the levies and whether they are capped. In 2000, the average capped development charge for 1 bedroom + units was $8,000 to $10,000, while 2 bedrooms were $15,000 to $18,000.

Please note: Development charges are subject to HST. Therefore, as an example, if you are paying $10,000 in development charges, you really have to pay $11,300.


You may or may not have to pay HST depending on your contract, and who is going to live in the unit. Or the stipulations that thee CRA imposes at the time of closing. 

The maximum HST you will pay currently, is $24,000. But not to worry, in most cases, you can obtain a rebate from the government. The HST rebate amount varies depending on the purchase price. If a new house or condo is priced under $350,000, you can receive a maximum of $30,000 back (36% rebate on the GST portion and 75% on PST). Between $350,000 and $450,000 a sliding scale applies. And for properties costing more than $450,000, a maximum rebate of $24,000 can be received.

You can apply to get this money back from the CRA. In most cases you will get all or a majority of funds back within 2 months.

However, pls note there are circumstances that will disqualify you from the rebate. For further info, look at our “When you do not Qualify for a HST Rebate under our FAQs.

Property Taxes:

Property taxes in Toronto 2021 on $700,000 at 0.611013% = $4,277.09


Other Miscellaneous Costs:

  • Your own lawyer’s fees: $1200-2700
  • Tarion’s site review
  • Builder’s Banking Fees – Wire Fees Etc.
  • Electronic Registration Fee
  • Deposit Administration / Letter / Cheque Handling Fee 
  • Mortgage Discharge Fees
  • Status Certificate (Around $100)
  • Builder’s lawyer Fee for Registering Title/Deed/Transfer on closing 
  • 1st month common expenses / maintenance fees / Condo Fees
  • Reserve Fund Contribution: 2 months of condo fees
  • Tarion Enrollment fee $1200-$2135.70
  • Insurance for your unit