TRENDING: H&R REIT Sells Canadian Pacific Building For $20.2M

Pre-Construction Condo Purchase

Explore what a pre-construction condo purchase involves in Canada, including benefits, risks, and legal protections for prospective buyers.

Pre-Construction Condo Purchase

May 22, 2025


What is a Pre-Construction Condo Purchase?

A pre-construction condo purchase involves buying a condominium unit before it is built, often based on floor plans and promotional materials.

Why do Pre-Construction Condo Purchases Matter in Real Estate

In Canadian real estate, buying a condo pre-construction allows buyers to secure a property at today's price, with closing typically occurring several years in the future.

Benefits include:
  • Lower upfront costs (usually 15–20% deposit paid in stages)
  • Time to save or plan for final closing
  • Potential for property appreciation before occupancy
However, pre-construction purchases come with risks:
  • Delays in construction
  • Changes to unit layout or building features
  • Market value fluctuations
  • Interim occupancy period (with added fees)
Buyers should carefully review the purchase agreement and disclosure statement, often with a real estate lawyer, to understand timelines, cancellation rights, and included upgrades or finishes.

In Ontario, purchasers benefit from a 10-day cooling-off period and Tarion warranty protection. Similar safeguards may apply in other provinces.
Understanding the full process and obligations of a pre-construction condo purchase helps buyers make informed, long-term investment decisions.

Example of a Pre-Construction Condo Purchase in Action

A buyer reserves a pre-construction condo in 2024 with a 20% deposit spread over a year. The unit is expected to be ready by 2027.

Key Takeaways

  • Buy before the condo is built.
  • Deposit paid in stages.
  • Risk of delays and changes.
  • Offers price-lock and growth potential.
  • Legal review is highly recommended.

Related Terms

  • Interim Occupancy
  • Deposit Structure
  • Tarion Warranty
  • Closing Costs
  • Cooling-Off Period

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

More For You

Edmonton Introduces $15M Downtown Student Housing Incentive Program

Downtown Edmonton at dusk.

Downtown Edmonton. / Rita Petcu, Shutterstock

Downtown Edmonton hosts thousands of post-secondary students, so to support their success as well as the revitalization of the downtown core, the City of Edmonton is introducing a new Downtown Student Housing Incentive program. It's the first program of its kind in Canada, according to the City.

"The Program has two main priorities: increasing downtown revitalization and off-campus student housing," said City staff in a Council report. "Projects will be prioritized for funding based on alignment with the program priorities and objectives, as well as how well projects meet the program criteria."

Keep ReadingShow less

AC Development Bumps Up Sheppard East Proposal To 30 Storeys With Undulating Facade

AC Development Bumps Up Sheppard East Proposal To 30 Storeys With Undulating Facade
Rendering of 635 Sheppard Avenue East and 1 Greenbriar Road/Icon Architects

A 12-storey mid-rise proposal slated for 635 Sheppard Avenue East and 1 Greenbriar Road in the North York district of Toronto has jumped in height to 30 storeys, according to revised plans from AC Development. The more-than-double increase reflects the fact that “the policy framework and development trends for the surrounding area have changed,” according to the planning report that went to the City.

Official plan and zoning bylaw amendment applications for the initial 12-storey development at southeast corner of Sheppard Avenue East and Greenbriar Road were adopted by City Council in October 2023, and at the time, the proposal called for 145 units, as well as around 115,510 sq. ft of total gross floor area (GFA), including around 4,343 sq. ft to be dedicated to non-residential.

Keep ReadingShow less

3 Towers Planned For Scarborough Medical Building, Tallest In The Area

3 Towers Planned For Scarborough Medical Building, Tallest In The Area
2130 Lawrence/Turner Fleischer Architects

Plans recently submitted to the City of Toronto aim to redevelop a Scarborough medical building with a 15-, 36-, and 40-storey mixed-use complex that would deliver over 1,300 new condo units and 20,212 sq. ft of retail space. The Zoning By-law Amendment (ZBA) application was filed in late July by 2031740 Ontario Inc., a numbered company represented in planning materials by an individual named Hagop Boyrazian.

The site spans 2.74 acres and sits at 2130 Lawrence Avenue East on the north side of Lawrence, just west of Birchmount Road and in the Wexford/Maryvale neighbourhood. If approved, the site would be transformed from a four-storey commercial property home to various medical offices and a parking lot, into an intensified residential and retail property in line with emergent growth in the area.

Keep ReadingShow less

H&R REIT Offloads Canadian Pacific Building With Zoning Approvals For $20.2M

H&R REIT Offloads Canadian Pacific Building With Zoning Approvals For $20.2M
Rendering of 69 Yonge Street/ERA Architects, PARTISANS

Toronto-based H&R REIT has confirmed the sale of the Canadian Pacific Building, a landmark office property at 69 Yonge Street that’s set to be redeveloped into a 127-unit condo through adaptive reuse. The July 23 sale was revealed in the real estate investment trust’s second-quarter earnings report, released Thursday, which also puts the selling price at $20,200,000.

The 15-storey property spans 89,276 sq. ft in Toronto’s downtown core, and was 81.4% occupied with an average remaining lease term of 3.4 years, as of June 30, 2025, the financial reports say.

Keep ReadingShow less
TRENDING: H&R REIT Sells Canadian Pacific Building For $20.2M

Rental Market Drives Canadian Housing Starts To Highest Level Since 2022

Rental Market Drives Canadian Housing Starts To Highest Level Since 2022
Shutterstock

At the national level, housing starts continued to show growth in July, according to the latest data shared by the Canada Mortgage and Housing Corporation (CMHC). The agency reported that the total monthly seasonally adjusted annual rate (SAAR) of starts hit a multi-year high, rising by 4% from 283,523 units in June to 294,085 units last month.

Tania Bourassa-Ochoa, CMHC’s Deputy Chief Economist, says the first seven months of this year have been stronger than the same timeframe in 2024, thanks largely to increased multi-unit starts in the Prairie Provinces and Québec. However, she also points out that the growth we're seeing now was initiated some time ago.

Keep ReadingShow less

Meet The Agent: Anya Ettinger, Bosley Real Estate Ltd.

Anya Ettinger, Bosley Real Estate Ltd., Brokerage

Welcome to Meet the Agent, an ongoing series profiling real estate agents from across Canada. With more than 150,000 agents, brokers, and salespeople working in 75 different boards and associations across the country, we thought it was about time they had a place to properly introduce themselves.

If you or someone you know deserves the same chance, email agents@storeys.com to apply.

Keep ReadingShow less

Canadian Home Sales Mark 4th Consecutive Monthly Increase

Canadian Home Sales Mark 4th Consecutive Monthly Increase
Shutterstock

After tariffs sent Canadian home sales on a months-long downtrend, the market has been showing signs of recovery as of late, with July marking the fourth consecutive month of sales growth. According to the latest national housing stats from the Canadian Real Estate Association (CREA), there were 40,228 home sales in July, up 3.8% month over month and 6.6% above July 2024.

“With sales posting a fourth consecutive increase in July, and almost 4% at that, the long-anticipated post-inflation crisis pickup in housing seems to have finally arrived,” said Shaun Cathcart, CREA’s Senior Economist. “Looking ahead a little bit, it will be interesting to see how buyers react to the burst of new supply that typically shows up in the first half of September.”

Keep ReadingShow less

Reliance Ups Davie Street Condo Tower To 32 Storeys, Cuts Office Space

Renderings of the 32-storey tower proposed for 904-920 Davie Street in Vancouver.

Renderings of the 32-storey tower proposed for 904-920 Davie Street in Vancouver. / Neil M. Denari Architects, Bingham + Hill Architects, Reliance Properties

Sometimes the approval process takes so long that the development landscape changes and developers have to revise their projects. The latest example of this happening is a project by Vancouver-based Reliance Properties, who recently submitted a new rezoning application for a project they had applied for back in November 2023.

The subject site of the project is 904-920 Davie Street, at the intersection with Hornby Street, and is immediately east of Reliance's multi-tower Burrard Place project, meaning Reliance controls the entire block of Hornby Street between Davie Street and Drake Street.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved