TopicPre-Construction and Assignment Sales in the GTA
What you are really signing when you buy from a floor plan.
Buying pre-construction means agreeing today on a price for a home that is years from finished. The deposit schedule, the closing costs the builder can add, the occupancy period and your right to assign the contract matter as much as the price. Moe Asgarian explains how to read the agreement, what to ask the builder, and how assignments work.
Pre-Construction and Assignment
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Frequently asked questions
What are the risks of buying pre-construction?
The main ones are delay, closing costs that were not capped in the agreement, and a mortgage appraisal at closing that comes in below the price you agreed to years earlier. A lawyer's review during the cooling-off period and written caps on the builder's adjustments take care of most of it.
What is an assignment sale?
It is selling your purchase contract to another buyer before the building is registered. The new buyer takes over your agreement with the builder and pays you back your deposits, plus or minus the change in value. Most builders require their consent and charge a fee, so check the assignment clause before you buy.
What should I ask a builder before I sign?
Ask for the full deposit schedule, a written cap on development charges and other closing adjustments, the right to assign and what it costs, whether you may rent the unit out during occupancy, and the builder's record of finishing past projects on time.
Talk it through with Moe
Tell us what you are weighing up and get straight, no-pressure advice, in English or Farsi.
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