May 23, 2026
Reading a Pre-Construction Purchase Agreement Without Regret
The clauses that quietly cost buyers thousands — and the ones worth negotiating.
A new-build purchase agreement in Ontario is typically 40–80 pages of builder-friendly clauses. Most buyers sign without reading past page 5. Here are the clauses worth knowing — and the ones worth negotiating.
The 10-day cooling-off period applies to pre-construction condos (not freehold). You have 10 calendar days from the date you receive the disclosure statement and signed agreement to walk away for any reason and get your deposit back. Use that window — give the package to a real estate lawyer for review. A lawyer's pre-construction review typically costs $500–$900 and is the best money you'll spend on the deal.
Adjustments and closing costs are where new builds quietly add 2%–5% to the headline price. Look for: development charges (often capped at signing for major Ottawa builders — confirm in writing), Tarion enrolment fee (~$400–$1,500 depending on price), utility hook-up fees ($1,500–$3,500), education and parkland levies, and "law society levy" charges. Builders will usually agree to cap total adjustments at a defined dollar amount if you ask in writing before signing. Without the cap, surprises at closing are routine.
HST on a new home is included in the price for owner-occupiers under the federal and Ontario new housing rebates, but only if you sign the rebate assignment forms. If you're buying as an investor to rent out, you pay the full HST at closing and reclaim the rental portion later through the NRRP rebate — a meaningful cash-flow difference.
Closing date is rarely the firm date. Builders use a tentative occupancy date, a firm occupancy date, and an outside completion date, with the right to extend under Tarion's delayed closing rules. Read those rules. If the builder misses the outside date, you may be entitled to compensation up to $7,500 — but only if you preserve your rights in writing.
The assignment clause matters even if you don't plan to assign. Many Ottawa builders prohibit assignment outright or charge $5,000–$25,000 plus the builder's consent. Life changes; don't assume you'll still want this home in 30 months.
Bring the agreement to a real estate lawyer before, not after, the cooling-off period ends.
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