Buying a pre-construction property doesn’t end once you sign the agreement. In fact, that’s where the journey really begins. Understanding what happens between signing and closing can help you stay prepared, avoid surprises, and make smarter financial decisions.
Here’s a clear breakdown of what typically happens during this important phase of a pre-construction purchase.
1. The Cooling-Off Period
After signing the Agreement of Purchase and Sale (APS), buyers usually receive a cooling-off period (often 10 days). This allows time to:
Review the contract with a real estate lawyer
Confirm financing options
Walk away without penalties if needed
This step protects buyers and ensures confidence before moving forward.
2. Deposit Structure & Payment Schedule
Pre-construction deposits are typically paid in stages, not all at once. These payments are held in trust and released according to the builder’s timeline.
Common deposit schedules include:
Initial deposit at signing
Additional deposits over several months
Final deposit before construction milestones
Planning ahead for these payments is key.
3. Design Selections & Upgrades
Buyers are often invited to a design studio appointment, where they can choose finishes such as flooring, cabinetry, countertops, and upgrades.
While upgrades are optional, this is your chance to:
Increase future resale value
Enhance rental appeal
Personalize your home
4. Construction Phase & Project Updates
Construction timelines can range from a few years to longer depending on the project. During this time, builders typically provide:
Construction updates
Estimated occupancy timelines
Notices of delays or changes
Patience is part of the pre-construction process, but staying informed helps you plan better.
5. Interim Occupancy (For Condos)
For many condo projects, buyers enter an interim occupancy period before final closing. During this phase:
You can live in or rent out the unit
You pay occupancy fees (not a mortgage yet)
Legal ownership has not transferred
Final closing happens once the building is fully registered.
6. Final Closing & Ownership Transfer
At closing, the remaining balance is paid, your mortgage begins, and legal ownership transfers to you. This is when you officially become the property owner.
Your lawyer will handle:
Title transfer
Closing adjustments
Final documentation
Why Understanding This Process Matters
Knowing what happens between signing and closing helps buyers:
Budget properly
Prepare for financing
Avoid last-minute stress
Whether you’re buying to live in or invest, preparation is everything.
Thinking About Buying Pre-Construction? Let’s Talk!
Navigating pre-construction timelines can feel overwhelming — but you don’t have to do it alone. Having the right guidance ensures you’re protected and positioned for long-term success.
📲 Parth Jani
📞 647-907-6386
📩 parth@janirealty.ca
🌐 www.parthjani.com
👉 Reach out today for expert guidance on pre-construction purchases and upcoming opportunities.