You signed an agreement two years ago for a house that didn't exist yet. Now the closing date is real.

Yes. Every closing in Ontario, new build or resale, has to be registered on title by a lawyer licensed by the Law Society of Ontario. New build closings carry more legal work than resale because the agreement was drafted by the builder, the closing adjustments need to be reviewed and challenged where appropriate, the HST treatment needs to be confirmed, and pre-construction condos involve two separate closings (interim and final). Acting on a new build without a lawyer who has done them before is how buyers get caught off guard at the closing table.

Pre-construction condos close in two stages. At interim closing, you take possession of the unit and begin paying occupancy fees to the builder, but you do not own the unit and your name is not on title yet. The condominium corporation has not been registered yet, so there is no title to transfer. Final closing happens once the building is registered as a condominium corporation, usually weeks or months after interim closing. At final closing, your name goes on title, your mortgage funds and registers, and the occupancy fee period ends. Each closing has its own legal work, its own documents, and its own costs.

New homes in Ontario are subject to HST. The federal and provincial governments offer a New Housing Rebate that returns a portion of the HST to qualifying buyers. To qualify for the rebate as an owner-occupier, you (or a close family member) must intend to use the home as your primary place of residence on closing. Investors who plan to rent the unit out do not qualify for the New Housing Rebate but may qualify for the New Residential Rental Property Rebate, which has different rules and requires you to apply directly to the CRA after closing. Most pre-construction agreements assume you qualify for the New Housing Rebate and bake the rebate amount into the purchase price, with the builder collecting the rebate on your behalf at closing. If you do not qualify (typically because the unit is being rented), you may have to pay the rebate amount back to the builder on closing as an adjustment, then apply to CRA for the rental property rebate yourself. We confirm which rebate applies to your file before closing so you know what is coming.

Occupancy fees are what you pay to the builder during the period between interim closing and final closing on a pre-construction condo. They are not rent, and they are not mortgage payments. They are typically calculated as the interest the builder would have earned on the unsold portion of the purchase price, plus the unit's share of municipal property tax, plus an estimate of common element fees. Occupancy fees are not applied against your purchase price and are not deductible. They are the cost of having possession of a unit before the building is registered. The fees end on final closing, when your mortgage funds and your name goes on title.

More than you think. Beyond the legal fees and the standard disbursements that apply to any closing, new build closing adjustments routinely include development charges, education levies, utility hookup and meter installation fees, the Tarion enrolment fee, the construction lien holdback, and HST adjustments. Each of these is set by the agreement, not by the market, and the amounts can total tens of thousands of dollars. We review the closing adjustment statement and tell you what is coming on every file, ideally well before closing day so you can plan for the cash you need to bring.

Tarion is the regulator that administers Ontario's mandatory new home warranty program. Every new home in Ontario built by a registered builder is enrolled with Tarion. The warranty covers deposits during construction, delays in closing, defects in workmanship and materials for one year after closing, defects in major systems for two years, and major structural defects for seven years. We confirm Tarion enrolment as part of our pre-closing review and explain the Statement of Critical Dates so you know your rights if the closing is delayed.

Sometimes, but it depends on what your agreement allows. Most pre-construction agreements limit or prohibit assignment without the builder's written consent, and many builders charge an assignment fee (often substantial) when they do consent. Assignments are also taxed differently than resale transactions. The Canada Revenue Agency treats most pre-construction assignments as taxable supplies, meaning HST applies to the assignment proceeds, and there are reporting obligations on top. If you are thinking about assigning, send us the agreement first. We tell you what your agreement actually allows, what the builder's consent requirements are, and what the tax exposure looks like before you commit to a deal with the assignee.