GTA Pre-Construction

Quotes are copied word for word from the law and official pages. The “In plain words” lines are our explanation, not an official translation. This is not legal advice.

1. You get 10 days to think after the disclosure papers arrive

   A new condo contract only takes effect once the builder gives you the disclosure statement and the Ontario condo buyer’s guide, and from that day you have 10 days to cancel in writing for any reason. You get your money back with interest. If the disclosure later changes in a big way, you get a fresh 10 days. Use these days to have a real estate lawyer read the contract. The 10-day cancel right in the Condominium Act (s. 73) applies to condo units only. For a new freehold home (townhouse, detached), any cooling-off must be written into the contract.

   Read the law

   An agreement of purchase and sale of a unit or a proposed unit entered into by a declarant or a person acting on behalf of or for the benefit of the declarant is not binding on the purchaser until the declarant has delivered to the purchaser a copy of the current disclosure statement and the condominium guide in accordance with subsection (1).

   In plain wordsThe builder (the law calls it the “declarant”) must give you the disclosure statement (the papers that describe the building, its budget and its rules) and the Ontario condo buyer’s guide. Until you get both, the contract does not bind you.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

   To rescind an agreement of purchase and sale under this section, a purchaser or the purchaser’s solicitor shall give a written notice of rescission to the declarant or to the declarant’s solicitor who must receive the notice within 10 days of the latest of, (a) the date that the purchaser receives the disclosure statement; (b) the date that the purchaser receives a copy of the applicable condominium guide under section 71.1; and (c) the date that the purchaser receives a copy of the agreement of purchase and sale executed by the declarant and the purchaser. … the declarant shall promptly refund, without penalty or charge, to the purchaser, all money received from the purchaser under the agreement and credited towards the purchase price, together with interest on the money calculated at the prescribed rate from the date that the declarant received the money until the date the declarant refunds it.

   In plain wordsTo cancel, the builder (or its lawyer) must receive your written notice within 10 days. The 10 days start on the latest of three dates: when you got the disclosure statement, the buyer’s guide, and the contract signed by both sides. If you cancel, the builder must promptly refund everything you paid, with no penalty or fee, plus interest at the set rate.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

   Whenever there is a material change in the information contained or required to be contained in a disclosure statement delivered to a purchaser under subsection 72 (1) or a revised disclosure statement or a notice delivered to a purchaser under this section, the declarant shall deliver a revised disclosure statement or a notice to the purchaser. … the purchaser may, before accepting a deed to the unit being purchased that is in registerable form, rescind the agreement of purchase and sale within 10 days of the latest of, (a) the date on which the purchaser receives the revised disclosure statement or the notice, if the declarant delivered a revised disclosure statement or notice to the purchaser;

   In plain wordsIf something important in the disclosure statement changes (a “material change” — one big enough that a reasonable buyer would not have signed), the builder must send you a revised statement or a notice, and you get a new 10-day window to cancel. This works only until you take title.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

2. Your deposit is held in trust and earns interest

   A condo deposit must be held by a lawyer or trustee so the builder cannot spend it, and you must get written proof within 10 days of paying. Deposits earn interest at the set rate. If the builder ends the deal, it must return everything within 10 days; if it does not, Tarion covers up to $20,000.

   Read the law

   A declarant shall ensure that a trustee of a prescribed class or the declarant’s solicitor receives and holds in trust all money, together with interest earned on it, as soon as a person makes a payment, (a) with respect to reserving a right to enter into an agreement of purchase and sale for the purchase of a proposed unit; (b) on account of an agreement of purchase and sale of a proposed unit; or (c) on account of a sale of a proposed unit. … Within 10 days of the payment of the money under subsection (1), the declarant shall provide to the person who paid the money written evidence, in the form prescribed by the Minister, of compliance with subsection (1) and one of subsections (4) and (5).

   In plain wordsWhether you paid to reserve a unit or paid a deposit under the contract, the builder must have a trustee or its lawyer hold that money in trust (kept apart, so the builder cannot spend it) as soon as it is paid. Within 10 days of each payment, the builder must give you written proof that it did so. Ask for this paper and keep it.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

   The declarant shall pay interest at the prescribed rate to the purchaser on all money that a person pays on account of the purchase price of a proposed unit or that the declarant credits to the purchase price of a proposed unit.

   In plain wordsThe builder must pay you interest, at the rate set by regulation, on the money you paid toward the price (your deposits). It is usually credited to you at closing.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

   Condominium unit deposits must be placed in trust under the provisions of the Condominium Act. If your purchase agreement is terminated by your builder, your deposit must be returned to you in full within 10 days. If your builder does not return your deposit, Tarion provides deposit protection of up to $20,000.

   In plain wordsCondo deposits must be held in trust under the Condominium Act. If the builder ends the contract, it must return your whole deposit within 10 days. If it does not, Tarion covers up to $20,000. Money in trust should come back to you anyway, so this limit is a last safety net.

   Source: tarion.com/node/730 · checked Oct 30, 2026

3. The builder cannot walk away at will, but projects can still be cancelled

   The builder cannot end your contract just because it missed the registration deadline. But if the Early Termination Conditions in the Tarion Addendum (sales targets, construction financing, city approvals and so on) are not met, the whole project can be cancelled. Check which conditions apply, and by when, within your 10 days.

   Read the law

   Despite any provision to the contrary in the agreement of purchase and sale, the declarant is not entitled to terminate an agreement of purchase and sale of a proposed unit by reason only of the failure to register the declaration and description within a period of time specified in the agreement, unless the purchaser consents to the termination in writing.

   In plain wordsNo matter what the contract says, the builder cannot end your deal only because it missed the deadline to register the condo. It needs your written consent. (But watch the contract’s Early Termination Conditions — things like sales targets, financing or city approvals. If those fail, the project can be cancelled, so check them within your 10 days.)

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

4. The interim occupancy fee has a legal cap

   With a condo, you may move in months (sometimes more than a year) before the building is registered. This is “interim occupancy”. You cannot get a mortgage yet and do not pay the balance yet. Instead you pay a monthly occupancy fee, which by law cannot exceed three things added together: interest on the unpaid price, estimated property tax, and estimated condo fees. It does not reduce your price, so budget for it.

   Read the law

   If the purchaser assumes interim occupancy of a proposed unit or is required to do so under the agreement of purchase and sale, the declarant may charge the purchaser a monthly occupancy fee which shall not be greater than the total of the following amounts: 1. Where applicable, interest calculated on a monthly basis on the unpaid balance of the purchase price at the prescribed rate. 2. An amount reasonably estimated on a monthly basis for municipal taxes attributable to the unit. 3. The projected monthly common expense contribution for the unit.

   In plain wordsIf you move in before the condo is registered (interim occupancy), you pay a monthly occupancy fee instead of a mortgage. It cannot be more than the total of three things: (1) one month’s interest on the unpaid price at the set rate, (2) one month’s estimated property tax, and (3) one month’s projected condo fee. This money does not reduce your price.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

5. Tarion warranty: 1, 2 and 7 years — and register freehold homes within 45 days

   New homes are warranted by law. Year 1 covers work and material defects, year 2 covers water penetration and the heating, electrical and plumbing systems, and year 7 covers major structural defects. The warranty starts on the day you take possession. For new freehold homes, deposit protection is up to $60,000 or $100,000 depending on price, and for contracts signed on or after April 1, 2026 you must register with Tarion within 45 days to get the full amount.

   Read the law

   Every vendor of a home warrants to the owner, (a) that the home, (i) is constructed in a workmanlike manner and is free from defects in material, (ii) is fit for habitation, and (iii) is constructed in accordance with the Ontario Building Code; (b) that the home is free of major structural defects as defined by the regulations; and (c) such other warranties as are prescribed by the regulations.

   In plain wordsBy law, whoever sells you a new home warrants that it is built properly, free of material defects, fit to live in, built to the Ontario Building Code, and free of major structural defects. Tarion administers this warranty.

   Source: ontario.ca/laws/statute/90o31 · checked Oct 30, 2026

   Your one-year warranty begins on the date of possession (or occupancy date if a condominium) and includes items such as defects in work and material and unauthorized substitutions. … Your new home warranty continues to provide coverage into year two and include items such as water penetration, heating and electrical. … Your home’s seven year warranty covers major structural defects (MSD) and begins on the date you take possession of the home and ends on the seventh anniversary of that date.

   In plain wordsThe warranty starts on the day you take possession (for a condo, the day you take occupancy). Year 1: defects in work and materials, and unauthorized substitutions. Year 2: water penetration and defects in heating, electrical and plumbing systems. Year 7: major structural defects. Report defects to the builder and Tarion in writing within the set time limits.

   Source: tarion.com/homeowners/coverage-freehold-contract-condo-units-condo-conversions · checked Oct 30, 2026

   If you signed on or after January 1, 2018, your deposit coverage depends on the purchase price of your new home. … Starting April 1, 2026, new homebuyers should register their purchase agreement with Tarion within 45 days of signing to let Tarion know that they have signed an agreement and want their deposit covered. Purchasers who provide notice within 45 days will qualify for the maximum amount of deposit coverage currently available under the warranty program (see table above), while those who register later (or do not register) will qualify for coverage under a separate fund. … To allow time for consumers to be aware of the changes, Tarion is implementing a transition period and will defer the changes to deposit coverage until January 1, 2027.

   In plain wordsFor a new freehold home (you own the land and the house), Tarion’s table shows deposit protection up to $60,000 if the price is $600,000 or less, and 10% of the price (up to $100,000) above that. From April 1, 2026, register with Tarion within 45 days of signing to get that full amount; late registrations are paid from a separate, smaller fund. Tarion applies this change from January 1, 2027.

   Source: tarion.com/node/730 · checked Oct 30, 2026

6. If move-in is late there is compensation — read the Statement of Critical Dates

   The first page of the Tarion Addendum in your contract is the Statement of Critical Dates. A Tentative Occupancy Date can be moved without compensation if the builder gives 90 days’ notice, but once the Firm Occupancy Date passes you get $150 a day, up to $7,500. If your home is still not ready by the Outside Occupancy Date, you have 30 days to end the deal and get your money back. Freehold homes work the same way.

   Read the law

   The first page of the Addendum is a Statement of Critical Dates which must be signed by both you and your builder. It clearly indicates the date when your builder expects to finish your condominium unit and the latest possible date for permitted extensions. … This is the latest date that your builder agreed to provide you with occupancy of your condominium unit. You and your builder agree upon this date at the time of signing the purchase agreement. … If your condominium unit is not ready for occupancy by the Outside Occupancy Date, you have a 30-day period in which to terminate the agreement.

   In plain wordsThe first page of the Tarion Addendum attached to your contract is the Statement of Critical Dates. It shows the expected move-in date (a Tentative or Firm Occupancy Date) and the last day the builder may push it to (the Outside Occupancy Date). Both sides sign it. If your unit is still not ready by that last day, you have 30 days to end the contract and get your money back.

   Source: tarion.com/condo-units-coverage-occupancy-dates-delays-cancellations · checked Oct 30, 2026

   Delayed occupancy compensation up to a maximum of $7,500 is payable: … Delayed occupancy compensation for living expenses (meals and accommodation) is payable based on a fixed amount of $150 a day for each day of delay until the Delayed Occupancy Date or the date that the purchase agreement is terminated. Receipts for living expenses are not required. Compensation is also payable for costs incurred by you as a result of the delay (for example, additional moving and storage costs). Receipts for these costs must be provided. In addition, if your builder fails to give you 10 days notice of an occupancy delay, you will be compensated in the amount of $1,500 ($150 x 10 days).

   In plain wordsIf you move in after the Firm Occupancy Date, the builder owes you up to $7,500. Living expenses (meals and lodging) are paid at a flat $150 a day with no receipts, and extra costs such as moving and storage are paid with receipts. If the builder gives less than 10 days’ notice of a delay, you get $1,500 ($150 x 10 days). Claim from the builder within 180 days of your occupancy date. A Tentative Occupancy Date can be pushed back without compensation if the builder gives proper 90-day notice.

   Source: tarion.com/condo-units-coverage-occupancy-dates-delays-cancellations · checked Oct 30, 2026

   Every builder of a new freehold home in Ontario must provide the delayed closing warranty to buyers at the time the purchase agreement is signed. If closing is delayed beyond the Firm Closing Date (other than by mutual agreement or as a result of an Unavoidable Delay), then builders are required to compensate purchasers to a maximum of $7,500.

   In plain wordsNew freehold homes work the same way. If closing slips past the Firm Closing Date (unless you both agreed, or there was an unavoidable delay such as a strike or fire), the builder must compensate you up to $7,500. A Tentative Closing Date can be extended twice, by up to 120 days each time, without compensation.

   Source: tarion.com/freehold-contract-coverage-closing-dates-delays · checked Oct 30, 2026

7. The builder must be licensed by the HCRA — look it up in the Builder Directory

   Every company that builds or sells new homes in Ontario must hold an HCRA licence. Before you sign, search the builder in the Ontario Builder Directory (obd.hcraontario.ca) to see its licence status, homes built and any discipline record. If it is not listed, do not sign.

   Read the law

   No person shall act or hold oneself out as a vendor, offer to sell or transfer a new home, including as prescribed, or sell or transfer a new home, including as prescribed, unless the person is licensed as a vendor and meets the other prescribed requirements, if any. … No person shall act or hold oneself out as a builder, offer to construct a new home or construct a new home unless the person is licensed as a builder and meets the other prescribed requirements, if any.

   In plain wordsAnyone who sells a new home (a vendor) or builds one (a builder) must hold a licence. Selling or building without one breaks the law.

   Source: ontario.ca/laws/statute/17n33 · checked Oct 30, 2026

   In Ontario, all new home builders and sellers are required by law to be licensed by the Home Construction Regulatory Authority (HCRA). It is illegal to build or sell a new home without a valid licence. A licence confirms that the builder has met the competency requirement for a licence, and is committed to maintaining ethical practices, including honesty and integrity.

   In plain wordsThe HCRA (Home Construction Regulatory Authority, Ontario’s regulator of new home builders) licenses every builder and seller of new homes. A licence means the builder met the competency rules and committed to honest practice.

   Source: hcraontario.ca/do-i-need-a-licence/ · checked Oct 30, 2026

   Hosted by the HCRA, the Ontario Builder Directory provides key information such as a builder’s licensing status, years of activity, number of homes built, and any regulatory actions taken by the HCRA, including conduct concerns, charges, and convictions against the builder. If a builder is not listed, they may be operating without a licence, which is against Ontario law. Do not buy from unlicensed builders!

   In plain wordsBefore you sign, search the builder’s name at obd.hcraontario.ca. You will see its licence status, years in business, homes built, and any discipline or charges. Do not sign with a builder that is not listed.

   Source: obd.hcraontario.ca/ · checked Oct 30, 2026

8. New homes carry HST, and there are rebates

   A new home bought from a builder carries 13% HST. If you or a relative will live in it, there are rebates. The Ontario rebate is 75% of the 8% provincial part, up to $24,000, with no price cap. The federal rebate exists only under $450,000. First-time buyers who signed after March 19, 2025 can get the federal GST back up to $50,000, and their Ontario rebate is also topped up to as much as $80,000 (SOR/2010-151 s. 41(2.1)). Contracts signed April 2026 to March 2027 also get a bigger Ontario rebate, up to $80,000, whether or not you are a first-time buyer. Builder contracts usually price in the rebates on condition that you assign them to the builder, so if you do not qualify (for example, an investment unit) you pay that amount extra at closing.

   Read the law

   Effective July 1, 2010, the Harmonized Sales Tax (HST) replaced the 5% federal goods and services tax (GST) and the 8% retail sales tax (RST) on most goods and services in Ontario. Currently, the Harmonized Sales Tax is 13% in Ontario.

   In plain wordsOntario’s HST is 13% (5% federal + 8% provincial). HST applies when you buy a new home from a builder. A home sold by someone who is not its builder (a resale home) is usually exempt (see the Excise Tax Act, Schedule V, below). Check whether the price list says “HST included” and whether you must assign the rebates to the builder.

   Source: ontario.ca/document/harmonized-sales-tax-hst · checked Oct 30, 2026

   A particular supply by way of sale of a residential complex or an interest in a residential complex made by a particular person who is not a builder of the complex or, if the complex is a multiple unit residential complex, an addition to the complex, unless (a) the particular person claimed an input tax credit in respect of the last acquisition by the person of the complex or in respect of an improvement to the complex acquired, imported or brought into a participating province by the person after the complex was last acquired by the person; or (b) the recipient is registered under Subdivision D of Division V of Part IX of the Act and …

   In plain wordsThis is the list of “exempt supplies” (sales with no HST). When someone who is not the builder sells a home (a “residential complex”), no HST applies. That is why a resale home bought from the person who lived in it usually has no HST. There are exceptions, for example if the seller claimed an input tax credit on the home, or renovated it so much that the tax law treats them as a builder. If in doubt, ask an accountant or lawyer.

   Source: laws-lois.justice.gc.ca/eng/acts/E-15/page-120.html · checked Oct 30, 2026

   the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or unit or for any other taxable supply to the particular individual of an interest in the complex or unit, is less than $450,000, … (h) where the total consideration is not more than $350,000, an amount equal to the lesser of $6,300 and 36% of the total tax paid by the particular individual, and (i) where the total consideration is more than $350,000 but less than $450,000, the amount determined by the formula A × [($450,000 - B)/$100,000]

   In plain wordsThe federal GST rebate (on the 5% part) is 36% of the GST paid, up to $6,300, when the price is $350,000 or less. Between $350,000 and $450,000 it shrinks, and at $450,000 it is zero. The home must be your or a relative’s main home. Many GTA homes cost more than $450,000, so buyers often get only the Ontario rebate below.

   Source: laws-lois.justice.gc.ca/eng/acts/E-15/section-254.html · checked Oct 30, 2026

   If an individual is entitled to claim a rebate under subsection 254(2) of the Act in respect of a residential complex that is a single unit residential complex, or a residential condominium unit, acquired for use in Ontario as the primary place of residence of the individual or of a relation of the individual, or the individual would be so entitled if the total consideration (within the meaning of paragraph 254(2)(c) of the Act) in respect of the complex were less than $450,000, for the purposes of subsection 256.21(1) of the Act, the individual is a prescribed person and the amount of a rebate in respect of the complex under that subsection is equal to the lesser of $24,000 and the amount determined by the formula A × B where A is 75%; and B is the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the complex to the individual or in respect of any other supply to the individual of an interest in the complex.

   In plain wordsThe Ontario rebate returns 75% of the provincial part of HST (the 8%), up to $24,000. There is no price cap, so homes over $450,000 still qualify (the $24,000 maximum is reached at about $400,000). The home must be your or a relative’s main home, and you must apply within two years after you get title. Most builder contracts credit this rebate in the price in exchange for you assigning it to the builder.

   Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2010-151/section-41.html · checked Oct 30, 2026

   (b) the agreement of purchase and sale referred to in paragraph 254(2)(b) of the Act of the residential complex is entered into between the builder and the individual after March 2026 and before April 2027, (c) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the individual of the residential complex or for any other taxable supply to the individual of an interest in the residential complex, is less than $1,850,000, (d) the construction or substantial renovation of the residential complex begins before 2029 and is substantially completed before 2032, … The total of all amounts that the Minister pays to an individual in respect of a residential complex — each of which is an amount of a rebate under subsection 256.21(1) of the Act in respect of the residential complex, the amount of which is determined under subsection (2), (2.01) or (2.1) — shall not exceed the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex.

   In plain wordsThis rule changed in June 2026. If you sign with a builder between April 1, 2026 and March 31, 2027, the price is under $1,850,000, and construction starts before 2029 and is substantially done before 2032, the Ontario rebate is topped up so that the total rebate on the 8% provincial part can reach $80,000. Up to $1,500,000 you get back all of the 8% paid (to $80,000); between $1,500,000 and $1,850,000 it shrinks. The home must be for you or a relative to live in. This is new, so confirm how it applies with the CRA and an accountant.

   Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2010-151/section-41.html · checked Oct 30, 2026

   (b) the agreement of purchase and sale referred to in paragraph (2)(b) is entered into after March 19, 2025 and before 2031, (c) the construction or substantial renovation of the residential complex begins before 2031 and is substantially completed before 2036, (d) ownership of the residential complex is transferred to the particular individual before 2036, … (iii) is a first-time home buyer at the particular time at which ownership of the residential complex is transferred to the particular individual, … (f) if the total consideration, within the meaning of paragraph (2)(c), in respect of the residential complex is not more than $1,000,000, the amount determined by the formula A − B where A is the lesser of $50,000 and the total tax paid by the particular individual, within the meaning of paragraph (2)(d), in respect of the residential complex

   In plain wordsA first-time home buyer who signs with a builder after March 19, 2025 (construction starting before 2031 and finished, with title transferred, before 2036) gets the whole 5% federal GST back on a price up to $1,000,000 (maximum $50,000). Between $1,000,000 and $1,500,000 it shrinks, and from $1,500,000 there is none. You must be a “first-time home buyer” when you get title, and be the first person to live in the home.

   Source: laws-lois.justice.gc.ca/eng/acts/E-15/section-254.html · checked Oct 30, 2026

   if an individual is entitled to claim a rebate under subsection 254(2.1) of the Act in respect of a residential complex acquired for use in Ontario as the primary place of residence of the individual, the individual is a prescribed person and the amount of a rebate in respect of the residential complex under subsection 256.21(1) of the Act … is equal to (a) if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the individual of the residential complex or for any other taxable supply to the individual of an interest in the residential complex, is not more than $1,000,000, the amount determined by the formula A − B where A is the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex, and B is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex

   In plain wordsIf you qualify for the federal first-time buyer GST rebate above (contract after March 19, 2025, and so on) and the home is your main home, the Ontario rebate is topped up too. On a price up to $1,000,000 you get back all of the 8% provincial part (up to $80,000): the regular Ontario rebate (up to $24,000) comes first and the rest comes as this additional rebate. Between $1,000,000 and $1,500,000 it shrinks, and from $1,500,000 there is none. It does not depend on the April 2026 to March 2027 window, and all Ontario rebates together cannot exceed $80,000.

   Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2010-151/section-41.html · checked Oct 30, 2026

   (a) the particular individual is 18 years of age or older at the particular time, (b) the particular individual is, at the particular time, a Canadian citizen or permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act, (c) at no time in the period that begins at the beginning of the fourth preceding calendar year that ended before the particular time and that ends on the day before the day that includes the particular time did the particular individual occupy a residential unit situated in or outside Canada as their primary place of residence while being an owner of (i) the residential complex in which the residential unit is located,

   In plain wordsFor this GST rebate, a first-time home buyer is 18 or older, a Canadian citizen or permanent resident, and has not lived in a home owned by themselves (or their spouse) at any time from January 1 of the fourth year before the year they get title. Homes outside Canada count too. Other first-time programs (land transfer tax refund, FHSA) use slightly different tests.

   Source: laws-lois.justice.gc.ca/eng/acts/E-15/section-123.html · checked Oct 30, 2026

   A particular rebate under subsection 254(2.1), 254.1(2.1), 255(2.1) or 256(2.1), for which a particular individual makes an application, shall not be paid if (a) after March 19, 2025 and before the particular time referred to in subparagraph 254(2.1)(e)(iii), 254.1(2.1)(e)(iii), 255(2.1)(e)(iii) or 256(2.1)(c)(iv), as the case may be, the particular individual, or another individual who is at the particular time a spouse or common-law partner of the particular individual, makes an application for another rebate under any of those subsections; and (b) the particular individual or the other individual, as the case may be, is entitled to the other rebate.

   In plain wordsIf you or your spouse or common-law partner already claimed (and qualified for) this first-time buyer GST rebate after March 19, 2025, you cannot get it again.

   Source: laws-lois.justice.gc.ca/eng/acts/E-15/section-263.3.html · checked Oct 30, 2026

9. Assignment sales need the builder’s consent and are taxed

   Selling your contract to someone else before registration is an assignment. The contract sets the builder’s consent, a fee, and your continuing responsibility, and the builder can say no. Since 2022, federal tax law treats an assignment as a taxable sale, so HST applies to what you receive, and your profit may be taxed as income too.

   Read the law

   If a taxable supply by way of sale of a single unit residential complex (as defined in subsection 254(1)) or of a residential condominium unit is made in Canada under an agreement of purchase and sale (in this section referred to as the “purchase agreement”) entered into with a builder of the single unit residential complex or of the residential condominium unit and if another supply by way of assignment of the purchase agreement is made by a person (other than the builder) under another agreement, then the following rules apply for the purposes of this Part: (a) the other supply is deemed to be a taxable supply, by way of sale, of real property that is an interest in the single unit residential complex or residential condominium unit; and (b) the consideration for the other supply is deemed to be equal to the amount determined by the formula A − B

   In plain wordsSelling your contract for an unregistered new condo or house to someone else (an assignment) is a “taxable sale” under the tax law, so HST applies to what you are paid for it. If the assignment agreement states in writing the part that repays your deposit, that part is left out of the tax. Your profit may also be taxed as income, so talk to an accountant.

   Source: laws-lois.justice.gc.ca/eng/acts/E-15/section-192.1.html · checked Oct 30, 2026

   A buyer may be able to assign the purchase agreement to a new buyer before or during interim occupancy. Buyers are encouraged to review the purchase agreement as there are often conditions that can include requiring the developer’s agreement to the assignment, charging a fee, and keeping the buyer liable for closing. Buyers should understand that the developer may not agree to an assignment sale, which may stop the transaction from occurring.

   In plain wordsContracts usually set conditions on assignments: the developer must agree, a fee is charged, and you may stay on the hook if the new buyer fails to close. If the developer says no, you cannot assign. Do not buy on the plan that you can “just flip it later”.

   Source: condoauthorityontario.ca/resource/condo-buyers-guide/ · checked Oct 30, 2026

   If a purchaser assumes interim occupancy of a proposed unit, the declarant, … (d) may withhold consent to an assignment of the right to occupy the proposed unit; (e) may charge a reasonable fee for consenting to an assignment of the right to occupy the proposed unit;

   In plain wordsDuring interim occupancy, the builder can refuse to let you hand your right to occupy the unit to someone else, or can charge a reasonable fee to agree. Assigning the contract itself also usually needs the builder’s consent and a fee under the contract’s own terms.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

10. Check for a cap on extra closing costs

    Builder contracts list costs you pay at closing on top of the price. Common ones are development charges (money the city charges on new buildings), education and parkland levies, water and hydro meter fees, the Tarion enrolment fee and legal document fees. These are contract practice, not amounts set by law, so they differ by project and can run to tens of thousands of dollars without a cap. The Tarion Addendum includes summary sheets for closing costs and adjustments, and by law the builder covers any first-year condo fee shortfall. It is common practice to have your lawyer ask for a cap on the levies within your 10 days.

    Read the law

    The applicable version of the Addendum, developed by Tarion and the Home Construction Regulatory Authority, must be attached to every purchase agreement. The Addendum provides: … Summary sheets for closing costs and adjustments. It is important to note that the Addendum supersedes any other conflicting conditions that may be found within the purchase agreement.

    In plain wordsThe Addendum, written by Tarion and the HCRA, must be attached to every new home contract. It holds the Statement of Critical Dates, limits on early termination conditions, the delay compensation rules, and “summary sheets for closing costs and adjustments”. If the Addendum and the contract disagree, the Addendum wins. Read this summary together with the cost clauses in the contract itself.

    Source: tarion.com/condo-units-coverage-occupancy-dates-delays-cancellations · checked Oct 30, 2026

    The declarant is accountable to the corporation under this section for the budget statement that covers the one-year period immediately following the registration of the declaration and description. … The declarant shall pay to the corporation the amount by which the total actual amount of common expenses incurred for the period covered by the budget statement, except for those attributable to the termination of an agreement under section 111 or 112, exceeds the total budgeted amount.

    In plain wordsThe builder is responsible for the first-year budget in the disclosure statement. If actual common expenses in the first year after registration are higher than budgeted, the builder pays the difference to the condo corporation. From year two, fees can rise, so read the budget with care.

    Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

1. Sales launchDay 1 to a few weeks

   The builder releases prices and floor plans and allocates units. Usually you first submit a “worksheet” (a form with the units you want and your budget). When a unit is allocated, you get the contract (APS), the disclosure statement and the buyer’s guide.

   What to do

   • Look up the builder’s licence and record in the Ontario Builder Directory
   • Budget for the price plus HST (if you cannot get the rebates), closing costs and occupancy fees
   • Get a mortgage pre-approval to know what you can afford

2. 10-day review period10 days after you receive all the papers

   For a condo, you can cancel for any reason within 10 days after you receive the contract, the disclosure statement and the buyer’s guide. This is almost your only chance to change the terms.

   What to do

   • Have a real estate lawyer with pre-construction experience review the whole contract
   • Check: deposit schedule, closing levies and cap, assignment terms, Statement of Critical Dates, early termination conditions, HST rebate clause, whether parking and a locker are included
   • If you do not like the terms, send written notice to cancel within 10 days (counted from when the builder receives it)

3. Deposit paymentsSpread over 1 to 3 years after signing

   You pay the deposit in instalments on the contract schedule. GTA condos commonly ask for 15–20% in total, split across signing, 30 days, 90 days, 180 days and so on, with a final part at occupancy (it differs by project). The money goes into trust and earns interest.

   What to do

   • Get written proof of trust within 10 days of each payment
   • For a new freehold home, register with Tarion within 45 days of signing (contracts on or after April 1, 2026)
   • Put every due date in your calendar and have the funds ready — a late payment can put you in breach

4. Construction2 to 5 years

   It can take time even to break ground, and move-in dates often change during construction. If there is a material change to the disclosure, the builder sends a revised statement and you get a fresh 10-day cancel right. A tentative occupancy date can be pushed back with 90 days’ notice.

   What to do

   • Open and keep every builder notice (date changes, revised disclosure)
   • Start arranging your mortgage 6–12 months before occupancy — you will be approved again at that time’s rates and rules
   • Keep your credit score and income steady (be careful with big new loans or job changes)

5. Interim occupancy (condos)A few months to over a year

   Your unit is finished but the building is not registered yet, and you move in. Before occupancy you do a Pre-Delivery Inspection (PDI, where defects are written down) with the builder, and then pay a monthly occupancy fee. Your one-year warranty starts now.

   What to do

   • Attend the PDI yourself (or send someone) and list every missing or damaged item on the PDI form
   • Photograph defects you find after moving in and report them to the builder and Tarion on the set forms and deadlines
   • Keep occupancy fee receipts — the property tax part is settled against the real tax later

6. Final closingAfter the building is registered

   Once the condo is registered, a closing date is set and you take title. Your mortgage funds arrive, and you pay the balance, closing levies, land transfer tax and legal fees. Deposit interest is credited back to you, and the HST rebates are usually assigned to the builder and reflected in the price.

   What to do

   • Go through the statement of adjustments from your lawyer line by line — compare it with the caps in your contract
   • If you are a first-time buyer, claim the land transfer tax refund (Ontario up to $4,000; Toronto has its own)
   • Set up home insurance, condo fee payments and your property tax account