Pre-Construction

What is Pre-Construction Purchase?

Is when a buyer purchase a property from a builder property in its development stages through floorplans, site plans price lists, and more. During these phases, the buyer will put down deposits towards the property over a specified time frame. This property plan if assignable can be sold a from the original buyer (assignor) to another buyer (assignee) before completion for a fee this is called an assignment fee.

Looking For Assignable Pre-construction Projects Click Here

Is buying pre-construction
a good idea?

Pre-con is good if you need more time to save.

Buying pre-con gives you the flexibility you need to pull that money together over time. A deposit on a pre-con property is usually 20%, but you pay it in installments over two, three or even four years.

Tips On Buying A Pre-Construction Home In Ontario

1. Research your builder

The Ontario Builder Directory (OBD) is an online resource that can help you confirm if your builder is licensed to build new homes in Ontario.  

You can also use the directory to learn more about the builder – for example, how many homes they have built, what their claims history is and, in the case of condos, what projects are underway or have been completed.
A feature recently added to the OBD is Conviction Search, which allows you to see whether a particular company or individual has been associated with any illegal building convictions during the past 10 years. 

2. Understand your purchase agreement before you sign

Your purchase agreement is one of the most important documents in your new home buying process.  

This purchase agreement is a legal and binding contract between you and the vendor, so it is important that you have a lawyer review it, before you sign.  

Your lawyer can also help you understand the Tarion Addendum attached to your purchase agreement, which includes closing dates and potential delays, closing fees and other possible costs. Your lawyer can also explain when your Agreement may be terminated and, if that happens, how your deposit will be protected under the Addendum.

3. Learn about your warranty coverage

Under the Ontario new home warranty and protection plan, all new homes have a warranty for, among other things, workmanship, materials, Ontario Building Code violations, water penetration, and defects in your home’s structure and systems. The warranty coverage is broken into one-year, two-year, and seven-year warranties and it is important to understand what types of defects and conditions are covered during each warranty period. 

4. Prepare for your
Pre-Delivery Inspection (PDI)

Before you take possession, you will have an opportunity to walk through your new home with your builder to make sure that nothing is missing, damaged or incomplete.  

Review Tarion’s PDI Checklist before your walk-through, so you’ll know what to look for. The PDI Checklist is a general guide so you should add your own checkpoints based on your property and its unique details.

5. Extra tips for
condo buyers

  1. Cooling off period
    If you are purchasing a new condo, you have an initial 10 days under the Condominium Act to cancel a sales agreement. During this time, make sure to review your purchase agreement and the disclosure statement. 
  2. Interim Occupancy
    You might move into a new condo before the condo project is completed and registered. This is called interim occupancy. Make sure to ask your real estate lawyer about the following:
  • Condominium ownership 
  • Monthly payment of interim occupancy fees 
  • Duration of interim occupancy
  • Other rights and responsibilities during the interim occupancy period.

Following these tips will help take some of the worries out of the purchase of your new home or condo. Please share this with family and friends who are in the market to buy a new home in Ontario.

Testimonials

This is what our clients, customers and affiliates had to say about Assign Circle and the team.

You are in great hands with Neville (MrTorontoRealtor) & Assign Circle team. He has his finger on the pulse of the Real Estate market. Whether you want to buy/ sell or invest he can help you. He always contacts me with new information with regard to investment opportunities. This platform keeps me connected. Grateful.
by Elaine Morrison
Neville is a master at what he does, his profound professionalism has impact me in a special way ,this is my 3rd home so far and the experience I had with Neville is that I didnt have to worry about nothing I sold my existing home with him and perched my new home with him at the same time, he has been so helpful along the way ,hes got a very humble spirit I didnt feel worried at all ,I will definitely use Neville and Assign Circle again in the future
by Kemroy Marshall
Proud Home Owner
This Assign Circle platform is Informative, resourceful, user-friendly and someone is always just a phone call away. The yearly platinum package offers tremendous value, well thought out, I can't ask for more.
by Kelecia Mattis
Mortgage Broker, CIBC

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