TRENDING: Inside The New Tool Helping Torontonians Rethink The Single-Family Home

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

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

CLV Group Buys Ashcroft’s ReStays Hotel, Unsold Condos Under Receivership

CLV Group Buys Ashcroft’s ReStays Hotel, Unsold Condos Under Receivership

The reStays and reResidences at 101 Queen Street and 108-116 Sparks Street in Ottawa. (TD Cornerstone and Cushman & Wakefield)

The ReStays Ottawa boutique luxury hotel in downtown Ottawa and a block of unsold ReResidences condos have officially been sold as part of a court-ordered sale, according to filings in Ontario Superior Court.

The ReStays Ottawa and ReResidences are located at 101 Queen Street and 108-116 Sparks Street, and consists of 111 hotel suites, 91 condo units, and just over 21,000 square feet of retail space across a six- and 17-storey building, all above an underground parkade.

Keep ReadingShow less

No Motor, No Traffic, No Problem: Floating Cottage 'Ursula' For Sale In Port Dover

No Motor, No Traffic, No Problem: Floating Cottage 'Ursula' For Sale In Port Dover

Ursula/Facebook Marketplace

And if you've ever sat in gridlock on the way to a cottage and wondered why the whole system couldn't just be different, meet Ursula.

This 14.5' x 45' floating cottage is currently moored at Port Dover marina, and is listed on Facebook Marketplace for $39,000. In the listing, the seller describes Ursula as "a sturdy girl."

Keep ReadingShow less

When Low-End Rents Get Harder To Afford, Homelessness Climbs: Study

When Low-End Rents Get Harder To Afford, Homelessness Climbs: Study

Hamilton, Ontario. (Destination Ontario)

It may not be shocking to hear that cities with high rents and low vacancy rates are also seeing an increase in homelessness, but correlation is not causation. But now, a recent study is pointing to causation.

The research was conducted by the Canadian Alliance to End Homelessness (CAEH), who said it was the first study of its kind in Canada, and that their research “demonstrates a clear link between housing affordability, vacancy rates, and increasing homelessness.”

Keep ReadingShow less

Forest Hill South $23.5M Sale Is Toronto's Priciest In Nearly 5 Years

Forest Hill South $23.5M Sale Is Toronto's Priciest In Nearly 5 Years

211 Dunvegan Road (Sotheby's International Realty Canada)

Persistent economic uncertainty has had a cooling effect on Toronto real estate over the last year. This is true among everyday properties, but also within the luxury brackets where even homes priced in the millions — typically catering to a less price-sensitive crowd — saw a notable decrease in activity.

Cutting through the slush, however, is the recent sale of a $22-million home that sold over asking in Forest Hill South last week. Ultimately selling for $23.5 million after garnering three competing offers, it’s the highest-value sale in the neighbourhood’s history, and the most expensive in Toronto in nearly five years.

Keep ReadingShow less

BILD: Single-Family Homes Lead GTA New Home Sales In July

BILD: Single-Family Homes Lead GTA New Home Sales In July
Toronto at dusk with city light and urban skyline with skyscrapers

There are two wolves inside the GTA's new home market, and for now, it's single-family homes that are being fed.

According to the latest from BILD, single-family sales just posted their fourth consecutive month above the 10-year average. Condos, meanwhile, are still locked out of most of the benefit.

Keep ReadingShow less

The 18 Toronto Developments Supported By $2.7B Federal-City Partnership

The 18 Toronto Developments Supported By $2.7B Federal-City Partnership

The 37-storey tower set for 150 Queens Wharf Road in Toronto. (Toronto Community Housing Corporation)

Earlier this month, the Government of Canada and City of Toronto announced a $2.7 billion partnership that will advance 18 housing projects, which will together deliver over 5,600 new rental homes. Construction is set to begin on approximately 4,500 of those units by year’s end.

“In Toronto, thousands of new homes have already been planned, permitted, and approved, but lack the financing to begin construction,” said Prime Minister Mark Carney in a press release on August 5.

Keep ReadingShow less

Downtown Eastside Project Breaks Ground With Funding From Feds, BC Builds, UBC

Downtown Eastside Project Breaks Ground With Funding From Feds, BC Builds, UBC

The 11-storey building set for 315 Main Street (172 E Cordova Street) in the Downtown Eastside of Vancouver.

A new mixed-use development is now under construction in Vancouver’s Downtown Eastside, thanks in large part to funding and contributions from four different governments in conjunction with those from several other parties.

The project is set for 315 Main Street (also known as 172 East Cordova Street), a corner lot located at the southwest corner of the intersection of Main Street and East Cordova Street.

Keep ReadingShow less

City Of Toronto Breaks Ground On Dundas And Ossington Mass-Timber Rentals

City Of Toronto Breaks Ground On Dundas And Ossington Mass-Timber Rentals

1113–1125 Dundas St W at Dundas and Ossington, prior to construction (Google Maps)

A surface parking lot at Dundas Street West and Ossington Avenue is officially a construction site.

The City of Toronto, CreateTO and the federal government marked the start of construction at 1113–1125 Dundas Street West on Monday; the rent-controlled rental building rising at the intersection will bring 74 new homes to Trinity-Bellwoods.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.