Know Before You Buy: Pre-Construction Condominiums
October 30, 2025
Buying a pre-construction condo is exciting — but there’s a lot to consider, from builders to contracts to timelines. The good news? There are clear protections in place to help keep buyers informed and supported along the way.
To make things easier, we’ve pulled together some of the common questions buyers ask when it comes to buying a condo, so you know about your rights, key steps in the process, and what to expect from your builder.
What should I know about my builder?
The most important thing: make sure they’re licensed. By law, anyone who builds or sells a new home in Ontario — whether it’s a detached house, townhouse, or condo — must be licensed by the Home Construction Regulatory Authority (HCRA). Before you sign anything, check the Ontario Builder Directory. It lists more than 7,000 licensed builders across the province, showing their licensing status, how many homes they’ve built, how long they’ve been in business, and their professional conduct record. This is the first step before moving forward.
A licence shows the builder has demonstrated competencies to build and sell new homes. Unlicensed builders haven’t — which can put you at risk for poor construction or limited options if something goes wrong. If a builder isn’t listed, that’s a clear sign to pause and reconsider moving forward.
Protections in Place for Buyers
Can I cancel after signing?
Yes! In Ontario, you have a 10-day cooling-off period under the Condominium Act. This means you have 10 calendar days to cancel your purchase — with no penalty and a full refund of your deposit. It is important to note, the 10-day clock starts only after you’ve received three key documents:
- The Agreement of Purchase and Sale, which must include the Condominium Information Sheet (outlined below).
- The Disclosure Statement, provided by the builder, which includes key details about the condo’s rules, budgets, and agreements for how the building will be managed.
- The Condo Buyers’ Guide, developed by the Condominium Authority of Ontario.
During this period, the builder must hold your unit for you. It’s also a good time to have your agreement reviewed by a lawyer experienced in condominium law, so you can feel confident moving forward.
Is my deposit safe?
In Ontario, by law, condo buyer deposits must be placed in trust to ensure they are protected. If your purchase agreement is terminated by the builder, your deposit must be returned in full within 10 days. If your deposit is not returned, Tarion provides protection of up to $20,000 and you can make a deposit protection claim through the warranty program. For more details, visit Tarion’s website.
What are my rights if the builder is asking for more money?
When you sign a purchase agreement, the price and terms are set out in the contract. Builders cannot simply override and implement a new agreement without your consent as the purchaser. If you are being asked to accept new terms or pay more, you may want to get independent legal advice so you fully understand your options. Learn more in HCRA Advisory 11 – Price Escalations and Contract Terminations.
What if the project gets delayed or cancelled?
The Condominium Information Sheet, which must be attached to the purchase agreement for all new or pre-construction condos, is a key protection for buyers. It lists important project details, timelines, and potential risks — including conditions that could lead to delays or cancellations. Reviewing this sheet with a lawyer will help you understand what might happen if the project changes, and what your options are. It gives you a clear picture of the risks so you can make informed decisions before committing.
What is “interim occupancy” and how does it work?
Interim occupancy is when you can move into your unit before the rest of the building is fully completed. The municipality will issue an occupancy permit to confirm your unit is safe to live in, although construction on other parts of the building may still be underway.
During this stage, buyers pay an interim occupancy fee, which typically covers interest on the unpaid purchase price, estimated property taxes, and condo maintenance fees. These payments are not mortgage payments and do not go toward the purchase price. Legal ownership and your mortgage only begin once the building is officially registered, and the final closing occurs. At this time, you can live in your unit, but you don’t legally own it yet.
Where can I turn for help?
Buying a home is just the beginning— protection doesn’t end at closing. If issues come up after your purchase, there are organizations that can help. If you have concerns about your builder’s conduct, the HCRA is a good place to start. Other organizations can support homeowners with different kinds of concerns:
- Condominium Authority of Ontario (CAO): The CAO provides a foundational guide for pre-construction and re-sale condo buyers, as well as steps to resolve common condo-living issues such as odour, noise, parking, storage, pets, and others that may disrupt the enjoyment of your condo unit. It also manages the Condo Registry, a searchable database of condo corporations that displays important information about any condo in the province, such as who is on the board, who is providing management services, and more.
- Condominium Management Regulatory Authority of Ontario (CMRAO): The CMRAO regulates condo managers and management companies in Ontario. They provide resources to help buyers and owners understand condo managers’ responsibilities and investigate complaints related to the conduct of licensed condominium managers or management services.
- Tarion: Tarion administers the province’s new home warranty program and is responsible for ensuring new home buyers receive the coverage they are entitled to under their builder’s warranty. In addition to providing deposit protection, Tarion helps resolve disputes between builders and homeowners regarding warranty claims.
Along with the HCRA, these organizations help protect your rights and support informed decision-making. Knowing who to contact — and when — can save you time during your purchase and beyond.
Purchasing a pre-construction condo marks an important step toward homeownership, but it’s crucial to understand the process and the protections in place. Resources like the Ontario Builder Directory and consumers protection groups like the HCRA and others can help you make informed decisions and confidently navigate the journey to condo ownership.