Buying a brand-new home can be exciting. Everything is fresh, never lived in, and you may even get to choose your finishes. However, buying a new build in Ontario comes with unique legal considerations and steps that differ from purchasing a resale property. As a law firm experienced in real estate law, we have put together a comprehensive checklist to help you navigate the process with confidence.
âś… 1. Review the Agreement of Purchase and Sale (APS) Carefully
When you buy a new build from a builder, you are typically signing a builder-prepared Agreement of Purchase and Sale. These contracts are often lengthy and written in legal terms that may be unfamiliar.
Key tips:
- Have your lawyer review the agreement before your 10-day cooling-off period ends.
- Look for important clauses such as occupancy date flexibility, adjustments, and builder rights to make changes.
- Understand your rights to cancel under the Ontario Condominium Act, if applicable.
*Note – With new builds, the base price may not include everything you see in the model home or marketing materials.
Be sure to ask about:
- What finishes are included (flooring, cabinetry, appliances)?
- What is considered an upgrade, and what are the upgrade costs?
- Are there development levies, utility hook-up fees, or landscaping deposits?
These “adjustments” can add thousands of dollars to your final closing costs. Your lawyer can review the Schedule B or Statement of Adjustments to help you prepare financially.
âś… 2. Understand HST and Rebates
When purchasing a newly built home or condo in Ontario, the Harmonized Sales Tax (HST) is typically included in the purchase price.
Be sure to ask your lawyer about:
- Buying as an investor
- Full Purchase price of the home or condo
- Any rebates or tax implications for the new build
âś… 3. Understand Warranty Protection
In Ontario, most new homes come with Tarion Warranty protection, which provides coverage for major structural defects and other issues.
Make sure to:
- Register with Tarion after your purchase.
- Understand the coverage periods (e.g., 1-year, 2-year, and 7-year warranties).
- Keep a log of any deficiencies for your Pre-Delivery Inspection (PDI).
Your lawyer can explain your rights and responsibilities under the Ontario New Home Warranties Plan Act.
âś… 4. Be Prepared for a Two-Stage Closing (Condos Only)
If you’re buying a new condominium, your closing may involve two stages:
- Occupancy closing – You move in but don’t own the unit yet.
- Final closing – Legal title transfers to you once the condominium is registered.
During the occupancy period, you’ll pay an occupancy fee, which includes estimated common expenses, taxes, and interest—not mortgage payments. This can last several months, so plan your finances accordingly.
âś… 5. Check Closing Costs & Adjustments
When buying a new build, the purchase price is not always the final amount you will pay. Builders often include extra charges at closing, such as development levies, utility connection fees, and other adjustments. These costs can add up quickly and catch buyers off guard if they are not clearly outlined up front. Have your real estate lawyer review the Agreement of Purchase and Sale early on can help you understand what to expect and avoid surprises on closing day.
âś… 6. Research the Builder
Choosing the right builder is just as important as choosing the right home. A reputable builder can mean the difference between a smooth experience and years of frustration. A builder with a solid track record and clear communication is more likely to deliver on time and as promised.
Make sure to:
- Research the builder’s history – You can check Tarion’s Builder Directory
- Look into past projectrs of delays
- Read online reviews and join groups of homeowners in the area or the areas of past projects
âś… 7. Work with an Experienced Real Estate Lawyer
The builder’s sales team represents their interests — not yours. A lawyer ensures your rights are protected throughout the process.
At Ang Law Professional Corporation, we:
- Review and explain your APS in plain language.
- Help you understand Tarion rights, levies, and fees.
- Handle title registration and mortgage closings.
- Offer remote signing and appointments for your convenience.
✅ 8. Secure Financing – With a Long-Term View
Because new builds often take many months (or years) to complete, it is wise to get pre-approved for a mortgage, but do not assume today’s rates will still be available when your home is ready.
Your checklist here should include:
- Confirming your mortgage lender will finance new construction.
- Asking if a rate hold is possible.
- Preparing for a new appraisal or mortgage qualification just before final closing.
Your lawyer will also handle the mortgage instructions and registration closer to closing day.
Be Ready for Final Closing Day
When the final closing arrives, your lawyer will:
- Verify the builder has provided all required documents (Tarion enrolment, tax certificates, etc.).
- Receive and disburse your mortgage funds.
- Register title and ownership in your name.
Make sure your down payment, closing costs, and any outstanding balances are ready in advance. Your lawyer will give you a closing summary and trust ledger so you know what to expect.
Final Thoughts
Buying a new build can be a great way to get exactly what you want in a home, but it also requires careful planning, review of fine print, and good legal guidance. At Ang Law PC, we help buyers navigate the process confidently, whether in-person or remotely to make sure the home your buy is the home you want.
đź“ž Have questions about your new build purchase? Contact us today to book a consultation.