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7 Tips to pre-construction condo buying

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Guest | 21 Mar 2014, 01:52 AM Agree 0

1.    Talk to experienced buyersNo marketing effort can beat the power of word-of-mouth. Ask people around you who have bought a pre-construction condo in Toronto before. Ask them about their experiences, fees, connections and who they recommend. There is no shame in learning from other people’s mistakes, especially when money is involved.
2.    Research the buildersYou can follow the advice you get from your friends or do your own research on builders who are in the pre-construction business. It cannot be emphasized enough how important it is to find a good, reputable builder. You will be investing your money in a pre-construction home that is essentially not even there yet. Therefore, it is crucial to find a company that is reputable for completing projects and handling problems effectively.
3.    The earlier you buy……the cheaper a pre-construction condo can be. The more units are sold, the more they increase the price of your future condo.
4.    Study your floor plan and inspect your unitEven though the floor plan can change eventually, it is recommended to examine the floor plan for the pre-construction condo that you are buying. At this point, you still have the freedom to choose whatever you like and even if you change your mind, and you had already signed the papers, you can pull out of the agreement within 10 days for free.
5.    Check out the locationWhen buying a pre-construction condo, some things are very similar to buying a resale condo: you should explore the neighbourhood in which it is going to be built. You can’t possibly know how the area will look like in a couple of years, but things like schools, shopping malls and other amenities don’t tend to move very often.
6.    Know your feesWhen selecting your pre-construction condo, you will have to pay the deposit to the builder which is usually 15 per cent of the whole amount and is paid in three installments within a year (unless otherwise stated). When the building is finished, you will have to pay closing costs such as land transfer tax, development and legal fees.
7.     Understand the risksBuying a pre-construction condo can be a great investment or a pleasant future home. But you have to understand that even if you carefully select the perfect builder, location and floor plan, there can be unforeseen events that can cause the development to delay or shut down and you can lose your money.
Expert Focus
Sherry Dabir is a broker with Homelife/Bayview Realty Inc. You can contact Sherry @ T: 416 417 2400 or visit and check out Sherry’s blog @
  • Charlene Williams | 25 Mar 2014, 08:41 PM Agree 0
    This is an excellent article. Public awareness is always good.
  • K.Darius | 26 Mar 2014, 10:07 AM Agree 0
    Great article but BEWARE OF BUILDER'S
    DEVELOPMENTAL CHARGES! on pre-construction, builders can charge about $7,000 of extras (taxes, levies, and "just because they legally can charges") - negotiate a cap and get a lawyer to review the purchase agreement before 10 day cooling period! BEWARE of OCCUPANCY FEES which you can pay over a year.
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