Pre-Construction Buying Guide
Buying a pre-construction home in Ontario follows a different process than purchasing a resale property. This guide walks through the typical steps involved when purchasing a townhome or detached home at a community such as The Valleys of Thornhill.
This guide is general educational information and is not legal advice. Pre-construction agreements vary by builder, and you should always consult a licensed real estate lawyer before signing any purchase agreement.
1. Research & Representation
Before registering for a project, many buyers choose to work with a buyer's representative. Builder sales representatives work on behalf of the builder, so having your own representation can help you understand how a specific project compares to others in the market and what questions to ask before signing anything.
2. Registration & Platinum Access
Pre-construction projects often open with a registration or VIP phase before the general public launch. Registering early does not obligate you to purchase, but it may provide earlier access to floor plans, pricing, and lot selection once a release begins.
3. Reviewing Floor Plans & Pricing
Once pricing is released, review available floor plans, lot premiums, and included features carefully. Compare unit sizes, layouts, and upgrade packages across builders if more than one is participating in the community.
4. Worksheet & Reservation
Many builders use a non-binding worksheet or reservation process to confirm your interest in a specific unit or lot before the formal agreement of purchase and sale is signed. Terms vary by builder — confirm whether any deposit at this stage is refundable.
5. Agreement of Purchase & Sale
The formal agreement outlines the purchase price, deposit schedule, included features, closing conditions, and builder obligations. This is a lengthy legal document — in Ontario, it is strongly recommended to have a real estate lawyer review the agreement, and in many cases you are entitled to a statutory review period before the agreement becomes binding.
6. Cooling-Off / Rescission Period
Certain pre-construction purchases in Ontario — particularly condominium units — are subject to a statutory 10-day rescission period under the Condominium Act, during which a purchaser may cancel the agreement without penalty. Freehold townhome and detached home agreements may have different cancellation terms set out in the agreement itself. Always confirm the specific terms that apply to your purchase with a real estate lawyer.
7. Deposit Structure
Pre-construction purchases typically involve a series of deposits paid over time rather than a single lump sum at signing, with the schedule and total deposit percentage set by the builder and disclosed in the agreement.
8. Construction & Occupancy
Construction timelines for pre-construction communities span multiple years from initial sale to occupancy, with builders providing periodic updates. Occupancy dates in the original agreement are typically estimates and may be adjusted by the builder within limits set out in the agreement and applicable regulations.
9. Closing
At final closing, ownership transfers to the purchaser, financing is finalized, and any adjustments (such as development charges, utility hookups, or Tarion warranty enrollment fees) are settled according to the agreement terms. A real estate lawyer handles the closing process on your behalf.
Have Questions About the Process?
Our team can walk you through each step of the pre-construction purchase process for The Valleys of Thornhill.
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