A 10 day period that allows a buyer to review the contract with their lawyer, speak to their financial institution to get their mortgage pre-approval or commitment letter in place, and ultimately decide if they want to proceed with the purchase. If the buyer chooses to not go forward with the unit purchase, they will not be charged a penalty.

A written agreement between two parties for the purchase and sale of a property.

Shared spaces for residents to unwind. Amenities could include a gym, party lounge, rooftop deck, games rooms and more.

An individual who receives transfer of title, property or rights from an assignor.

An individual who gives transfer of title, property or rights to an assignee.

A parking space assigned by the condominium board to a specific resident. The parking space is considered an exclusive use space and is therefore not owned by the assignee. 

A type of sale that occurs when the original buyer of a pre-construction unit sells their rights and obligations of the Agreement of Purchase and Sale to another individual or entity. This occurs before the original owner takes title of the unit and before the condominium has finished construction. 

A bank draft is a cheque or payment issued by the buyer’s financial institution that is used to provide the builder with the first initial deposit. 

The amount of money that must be paid by the buyer to the seller/developer on the day of closing.

Shared spaces of a condominium that belong to all owners including lobbies, elevators, lockers, hallways, air conditioning systems, security systems, and more.

The date at which title gets transferred from the seller to the buyer. For pre-construction properties, the closing date occurs when the condominium is registered and title is transferred for a specific unit from the builder to the buyer.

There are four specific occupancy dates that the builder must adhere to when the buyer purchases a pre-con unit including the First Tentative Occupancy Date, Final Tentative Occupancy Date, Firm Occupancy Date, and Outside Occupancy Date. The buyer would be eligible for compensation under the Tarion Warranty Program if the builder is delayed beyond the Outside Occupancy Date.

An initial payment that provides a commitment to continuing with the purchase of a property.

A right given to an owner to use a certain space that is not owned by them, but rather the condominium. Exclusive use areas can include balconies, decks, parking, locker spaces and more. The owner is responsible for the maintenance of those areas. 

Once the city has completed their final property inspection of the building and the property, the building is officially registered. Buyers will now receive title to their home and will begin paying monthly mortgage payments. 

Once the building is registered, the buyer’s lawyer will request the final closing costs from the buyer which includes various fees, title insurance, land transfer tax, and the remainder of the down payment, if applicable.

If the first tentative occupancy date is delayed, the final tentative occupancy date must be set within 30 days of the roof’s completion.

If the first two occupancy dates cannot be met, the builder sets a new date with 90 days prior notice to buyers. If this date once again cannot be met, an outside occupancy date will be set allowing buyers to apply for compensation due to the delayed move-in date.

The anticipated date that the building will be ready for occupants to move in which is agreed upon by the buyer and the builder. 

The ability for a pre-construction buyer to sell their unit prior to the condominium finishing construction. 

Interim occupancy is the period of time where the buyer can occupy the unit, but does not officially own the unit yet as the building is waiting to be registered. During this time, the buyer will be required to pay interim occupancy fees to the developer to account for an estimate of property taxes, projected condo fees, and interest on the unpaid balance of the purchase price.

Monthly interim occupancy fees are paid monthly to the developer to account for an estimate of property taxes, projected condo fees, and interest on the unpaid balance of the purchase price. Note: these fees do NOT go towards paying the principal of the buyer’s mortgage loan. Once the building is registered, the buyer will pay final closing costs and will start paying monthly mortgage payments.

Note: properties in Toronto will have an additional Toronto Municipal Tax.

A tax charged by the Provincial Government when property title is exchanges from one individual to another.

Also referred to as condo fees, maintenance fees are a sum of money that is paid each month by a unit owner to the condominium corporation for up-keep of the building and amenities. 

The amount of money a lender has approved to lend the borrower for a certain time frame and interest rate.

A mortgage commitment letter details the terms and conditions of a mortgage loan that is being promised. It states that the lender is approving the borrower for the loan, so long as the borrower complies with terms and conditions. 

A mortgage pre-approval is a tentative promise from a lender that they will loan the borrower a certain amount of money to purchase a property. The lender will check the borrowers credit score and verify key financial information to ensure the borrower has sufficient capital to repay the loan.

A monthly payment comprised of principal and interest paid to a lender to go towards repayment of the loan given for the purchase of a home. 

A non-assignment clause may be included in the Agreement of Purchase and Sale prohibiting a buyer to assign their rights and obligations of that contract to another individual.

The buyer must take occupancy of the unit prior to the condominium being registered under the Land Registry System. Until the condominium is registered, the buyer will not have full ownership of the unit. 

A date that is agreed upon by the buyer and the builder to specify the last possible date the buyer can move-in. If there are delays beyond this date, the buyer is eligible to apply for compensation.

Platinum agents receive first access to pre-construction projects, including details such as floor plans and pricing. Platinum agents can offer their clients lower priced units and incentives prior to launching the project to the public.

A cheque that is written with a future deposit date. Under pre-construction, these cheques are cashed at certain intervals during the construction period based off of the agreed upon deposit structure. 

A required inspection where the builder and the buyer will do a first-time walkthrough of the unit to determine if there is any damage, there are items missing, or anything is not working. Those items will be added to the PDI form indicating that there are issues prior to taking occupancy. The builder is expected to fix the issues listed as soon as possible.

Property tax is a payment made by a homeowner based on the value of the property. It includes both municipal taxes and education taxes.  

The right to lease on occupancy allows buyers to lease or sublease their unit during the occupancy period. If the builder does not allow this, the buyer can negotiate the right to lease on occupancy prior to signing the Agreement of Purchase and Sale.

A form that indicates the dates in which the buyer can take occupancy of the unit. These dates are agreed upon by the buyer and the builder at time of signing the Agreement of Purchase and Sale.

A Condominium Corporation document that outlines key information pertaining to the status of the condo and corporation. It includes bylaws, rules, declaration, financial standing, reserve fund, management contracts, and more. Ensure to have your lawyer look over the status certificate prior to purchasing a unit. 

An Ontario Government organization created to protect the interests of new home buyers and to regulate new home builders. Tarion provides new homeowners with a warranty to protect against construction defects, lasting up to seven years. To learn more about Tarion warranties, click HERE.

A Tarion enrolment fee is calculated based on the purchase price of a home in order for the home to be protected by Tarion New Home Warranty.

A warranty provided to new home owners to protect against home defects, delayed occupancy or closing, financial losses, and provides deposit protection.

Refers to the legal ownership and rights of a property by an owner. An owner on title has the right to use, transfer, and sell that property.

A worksheet is a document that details key buyer information and the buyer’s unit choices. This document is crucial in order for a unit to be allocated to the buyer.