Pre-construction for Buyers

Buying pre-construction is a different experience than purchasing resale—and it requires a different approach from you as the agent. In this section, we focus on how to confidently guide your buyer clients through the unique process of purchasing a home or investment before it’s built.

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The Buying Process

Questions for the Buyer: 1) How much available cash on hand? In general, there would be an initial deposit followed by a series of deposit as specified by the builder. TYPICAL DEPOSIT STRUCTURE FOR A $750,000 unit: $10,000 on Signing (Bank Draft – Mandatory) = 10,000 Balance to 5.0% in 30 Days = 37,500 2.5% in 45 Days = 18,750 2.5% in 60 Days = 18,750 2.5% in 90 Days = 18,750 2.5% in 120 Days = 18,750 2.5% in 270 Days = 18,750 TOTAL DEPOSIT = $141,250 2) Do you have available funds so that the lending institution will provide a financing approval letter? Many Builders require this letter. 3) What type – condo or freehold 4) Where? 5) What? 6) When? 7) Total cost? 8) All the normal amenities questions….pool, subway, weight room etc. 9) Purpose of purchase. Is this an investment to rent or live in by the buyer or to assign at a future date? 10) If this is for yourself, if the completion date changes is this ok? 11) Have you pre-registered with any builder directly? ONCE the Buyer has decided on a property, a Builder's Worksheet is completed. The Builders Worksheet is handed in the Builder for the unit the Buyer is purchasing. If there are many worksheets for the same unit, then the Builder often chooses the Worksheet that most fits the Builders needs.

Paperwork Required

For the initial offering a worksheet must be submitted. Assuming the worksheet is accepted, or the Buyer has simply found a unit the following paperwork must be completed: RECO Information Guide Buyer Representation agreement FINTRAC The Builders contract (replaces the agreement of purchase and sale) The Builder’s referral (replaces the confirmation of cooperation and representation) Agent Sales Information Sheet All paperwork must be handed in when the Agreement is signed.

Taxes for the Buyer

In all cases a Lawyers review is mandatory so that the Lawyer can explain possible taxes. The following is brief over view of taxes for the Buyer: The rules for taxes for a Buyer revolve around whether or not the Buyer will occupy the property for their own personal use. If the Buyer purchases and occupies the unit - 1 of 2 scenarios will apply: 1) The Buyer forgives their right to any HST refund to the Builder. In other words, the Builder has this built into the price of the unit or: 2) The Buyer will be allowed to claim back a portion of the HST from the CRA In both examples above, this will be defined in the builder’s contract. Once again, a lawyer’s review of the contract is mandatory. Should the Buyer be an investor, the Buyer will pay the builders portion of the HST upon closing. Once the Buyer has a one-year term lease in place, the Buyer may claim back a portion of the HST that was paid. In all cases for properties over $450,000 the maximum rebate is $24,000.

Other Buyer Considerations

A Buyer should always check whether or not the following is in the Builders Contract. This can reviewed with the Buyers Lawyer. There may be additional subjects that may affect a Buyers decision. The review is Mandatory. Here is a short list of considerations: 1) What about development fees? Development fees are in addition to the purchase price. 2) Are there extra costs for parking or lockers? 3) Can the Builders contract be assigned? This allows a Buyer to possibly sell the contract at a future date. 4) What about pre-occupancy? What will the costs be?

Company Condo Website

TheCondoMall.com is your go-to destination for everything pre-construction. Designed for buyers, investors, and agents alike, our platform showcases the hottest new condo developments across the Greater Toronto Area and beyond—giving you early access to exclusive floor plans, pricing, and incentives before projects hit the open market.


Whether you’re a first-time buyer or a seasoned investor, TheCondoMall.ca helps you:

• Discover new developments before they launch to the public

• Compare projects side by side based on location, pricing, and builder reputation

• Access VIP broker incentives, promotions, and limited-time offers

• Stay informed with expert insights, builder updates, and assignment opportunities

• Connect with a trusted team of real estate professionals who specialize in pre-construction sales


At TheCondoMall.com, we don’t just list condos—we provide the tools, data, and expert guidance to help you make confident, forward-thinking real estate decisions.

Please see your Manager if you have completed at least 2 deals in pre-construction sales in the last year. We can feature you as a pre-construction agent. 

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