Buying a new build home in Ontario requires more than choosing a floor plan and arranging a mortgage. A practical checklist should take you from the Agreement of Purchase and Sale and deposits through selections, delays, the pre-delivery inspection (PDI), closing and the first week in the home.
A builder purchase can take place over a long period, and the documents may change along the way. Keep one organized file for the signed agreement, every schedule and amendment, deposit receipts, upgrades, builder notices, financing records, PDI documents and closing papers.
Checklist for buying a new build home in Ontario
A buying new construction checklist should be used in stages, because the decisions made before signing affect what you pay, receive and can enforce at closing. Start by confirming the written deal, then track money and changes during construction, document deficiencies at PDI, and prepare separately for possession and legal closing.
Unlike a resale purchase, a new-build buyer may sign before the home is complete or, in a condominium project, before the unit can be transferred into the buyer’s name. The contract, builder schedules and applicable warranty materials therefore matter as much as the model suite or sales presentation.
- Before signing: obtain the complete agreement package, verify the builder and home, and have the financial commitments reviewed.
- During selections and construction: save every upgrade, allowance, payment request, change order and revised date.
- Before possession or closing: complete the PDI, finalize mortgage and insurance requirements, and provide documents promptly to your lawyer.
- On move-in and afterward: preserve evidence, use the current warranty process, and report issues in writing.
If you are comparing this purchase with a resale home, our overview of buying a home in Ontario explains the broader purchase process. A new-build transaction follows many of the same legal steps, but builder adjustments, construction timing and warranty documentation create additional work.
Before you sign: confirm the builder, home and complete agreement
Before signing, obtain the full Agreement of Purchase and Sale, every schedule, the features sheet, incentive pages and the deposit schedule. Do this before any contractual review period expires, because the agreement and signed documents, rather than verbal sales statements, define the bargain.
Ask for the legal name of the vendor corporation, not only the development’s marketing name. Confirm that the builder and the particular home are properly identified, and review current Tarion information about the builder and project where applicable. A sales representative can explain options, but a buyer should retain the documents that support each answer.
Use this pre-signing checklist:
- Confirm the legal name of the builder or vendor shown in the agreement.
- Confirm the exact lot, unit, parking space, locker, floor plan, elevation and any exclusive-use area being purchased.
- Obtain all schedules, addenda, features and finishes documents, floor plans, site plans and incentive sheets.
- Read the deposit schedule closely: amount, due date, payee, delivery method, consequences of late payment and where the deposit is held.
- Ask what protection applies to deposits and confirm the project’s Tarion enrolment information where relevant.
- Identify the base price, lot premium, any development-related adjustment clauses and the treatment of taxes.
- Confirm assignment, rental, resale and occupancy restrictions, including any builder consent requirement or fee.
- Identify what exterior work is promised, such as driveway paving, grading, sod, fencing, decks, walkways, railings and landscaping.
- Save brochures, renderings, emails and text messages that influenced the purchase, while ensuring important promises are put into the written agreement.
New home builders may use standard-form documents, but those documents are not interchangeable from one project to another. A clause capping a levy, confirming an appliance package or allowing an assignment can materially change the cost and flexibility of the purchase.
Early review by a real estate lawyer Ontario can identify clauses that require clarification before the buyer is committed. Send the agreement as one complete package, including every schedule and separate incentive, rather than sending only the signature pages.
For example, a buyer purchasing a $1,050,000 freehold townhouse in Durham may be focused on the advertised purchase price and $25,000 lot premium. Before signing, that buyer should also identify four staged deposits, whether the price assumes an HST rebate assignment, which exterior items are seasonal, and whether the agreement permits uncapped or capped closing adjustments. Those points can affect the cash required well beyond the initial deposit.
What is included, upgraded or excluded?
Only the signed contract documents reliably establish what is included in a new home. A model home may display premium finishes, appliances, lighting or landscaping that are not included in the base price of the property you are buying.
Read the features sheet beside the floor plan and every signed amendment. If the documents conflict, do not assume the more favourable version applies; ask the builder to resolve the point in writing before the agreement becomes firm.
| Category | What it means | What the buyer should retain |
|---|---|---|
| Standard feature | An item included at the stated builder specification, which may allow the builder to substitute within the contract terms. | Features sheet, selected colour package and any specification pages. |
| Allowance | A stated budget for an item or selection, which may create an overage if the chosen product costs more. | Allowance amount, selection invoice and written calculation of any credit or overage. |
| Upgrade | An added or higher-grade item chosen beyond the standard package. | Signed, priced upgrade order stating the item, location, tax treatment and payment terms. |
| Exclusion | An item not supplied unless the agreement specifically says otherwise. | Written confirmation if the buyer expects it to be provided. |
| Change order | A written amendment changing scope, price, selections or timing after the original agreement. | Final signed version and proof of payment or credit. |
Common assumptions that should be checked include air conditioning, appliance packages, rough-ins, light fixtures, window coverings, basement finishing, fencing, decks, driveway finish, sod and landscaping. The correct answer is not what another development included; it is what this agreement says.
Every upgrade or change order should identify the product, room or location, price, applicable taxes, approval date and payment due date. If the builder says an item is included, request a written confirmation that can be stored with the agreement. A verbal promise is difficult to compare against the final home and closing documents.
Consider a buyer who chooses a $7,500 kitchen package and a $3,200 electrical package for a new detached home. The buyer should retain the selection sheets and signed orders, confirm whether the quoted amounts include HST, and check whether payment is due during construction or shown on the statement of adjustments. Without that paper trail, it is harder to determine whether a late charge is authorized or duplicated.
Budget for deposits, financing, HST and closing adjustments
The purchase price is not the complete cash requirement for a new build. Buyers should separately budget for deposits, upgrades, mortgage-related costs, legal costs, land transfer tax where payable, title insurance, registration and disbursement costs, moving expenses, and builder adjustments authorized by the agreement.
Do not estimate the deposit structure from another project. Use the actual deposit schedule in your Agreement of Purchase and Sale, calendar every due date and retain proof of delivery or payment. Before signing, ask who receives the deposits, how they are held and what protection applies if the transaction does not proceed.
Mortgage pre-approval is not the same as final lender approval and funding. Tell your lender or broker about a new job, reduced income, new loan, credit-card balance, vehicle lease, change in marital status or other material financial change, and follow the lender’s requested timing for updated documents.
If you are using a First Home Savings Account (FHSA) or the Home Buyers’ Plan (HBP), confirm the withdrawal rules, documentation and lender requirements well before funds are needed. The availability of registered-plan funds does not remove the need to satisfy the lender’s down payment, income and closing requirements.
New-build pricing may include HST on the basis that the buyer qualifies for and assigns a rebate to the builder, or the agreement may allocate that issue differently. Have the HST wording and any rebate assignment reviewed against your intended use of the home, especially if you may rent the property, assign the agreement or change your plans.
Ontario land transfer tax may be payable on a purchase of land in Ontario, and Toronto municipal land transfer tax may also apply to property located in the City of Toronto. Eligibility for any first-time homebuyer relief depends on the current rules and the buyer’s circumstances, so it should be confirmed for the particular closing rather than assumed from an online estimate.
| Budget category | What to check | When to review it |
|---|---|---|
| Deposits | Amounts, dates, payment instructions and receipts. | Before signing and before each due date. |
| Mortgage funds | Income, debts, down payment source, appraisal and lender conditions. | Throughout the purchase and whenever circumstances change. |
| HST | Price wording, rebate assignment and intended occupancy or rental use. | Before signing and again before closing. |
| Builder charges | Levies, utility or meter items, taxes, upgrades and other adjustments. | Before signing and when the adjustment statement arrives. |
| Legal closing costs | Legal fee, title insurance, registrations, searches and disbursements. | When retaining the lawyer and before funds are delivered. |
A buyer planning to occupy a new $780,000 condominium in Toronto, for example, should not treat the deposit as the entire upfront cost. The buyer should preserve funds for the agreement’s deposit instalments, potential selection balances, legal closing costs, applicable land transfer taxes and the first period of utilities and moving. If the buyer’s income falls before final closing, the lender may require updated qualification before releasing mortgage funds.
A refinancing plan can also affect the household budget while waiting for a new home to be ready. A mortgage refinancing lawyer can assist with the legal side of a refinance, but the buyer should first discuss qualification, timing and any lender conditions with the lender or broker.
Track changes and delays while the home is being built
Keep one written log for selections, allowances, change orders, payments, promised dates and every builder notice. A clear record lets you compare the delivered home and closing charges to the documents you signed.
Builder dates can change, and the relevant notice requirements and buyer rights depend on the agreement, project type and current warranty framework. When a revised date arrives, save the notice immediately, update your lender or broker, consider the impact on housing and moving arrangements, and provide the agreement and notice to your lawyer if the change raises a concern.
Use a spreadsheet or notebook with the following columns:
- Document date and version number.
- Original and revised occupancy, possession or closing dates.
- Upgrade or allowance item, room, quoted price and signed approval date.
- Deposit or upgrade payment amount, due date, payment method and receipt location.
- Builder promise or question, the person who made it, and the written response received.
- Deficiency, photo number, report date and follow-up status.
Construction-stage access is controlled by the builder and site-safety rules. If a builder permits a pre-drywall or other independent inspection, clarify the permitted date, scope and access conditions in advance; if access is not permitted, do not enter an active construction site without authorization.
For example, a buyer receives a notice moving an expected freehold closing from September to November. The buyer should send the notice to the lender or broker, check the mortgage commitment and rate terms, revise the moving plan, preserve rent or storage records if relevant, and ask the lawyer to review the notice with the agreement. The notice itself does not answer every legal question, but it is an important part of the record.
Phase 8: pre-delivery inspection, PDI and closing
The pre-delivery inspection (PDI) records visible incomplete, damaged or deficient work, while closing transfers title for a freehold home. A condominium purchase may involve interim occupancy before final closing, meaning the buyer can occupy the unit before title is transferred and before the final closing occurs.
Do not treat the PDI as a casual tour. Bring the Agreement of Purchase and Sale, features sheet, final upgrade list, camera, charger, notebook and any builder-provided PDI materials. Record the exact location and nature of each item, take both wide and close photographs, and retain the completed PDI documentation.
Use this PDI deficiency list:
- Check that the unit, elevation, layout, parking and locker match the agreement.
- Compare installed finishes and appliances with signed selections and upgrades.
- Test accessible doors, windows, locks, drawers, cabinets, taps, toilets, drains, switches and outlets.
- Look for visible damage, incomplete caulking, paint defects, chipped surfaces, loose hardware, missing trim and damaged flooring.
- Check visible heating, cooling and ventilation controls, where operational at the time of inspection.
- Identify incomplete exterior, driveway, grading or landscaping work and note any seasonal completion issue.
- Record each item precisely, rather than writing only “finish issue” or “repair needed.”
An independent inspection may be useful where access is permitted and the scope is clear, but it does not replace the PDI, legal review or warranty reporting. Ask the inspector what can be inspected at that stage, since concealed components or unfinished systems may not be accessible.
For a freehold home, the builder may arrange PDI close to the legal closing date. For a condominium, interim occupancy commonly involves occupancy fees and other amounts described in the agreement, while final closing occurs later after the condominium is registered and title can be transferred. Review the project-specific dates and payment obligations rather than assuming a condo transaction follows a freehold closing sequence.
What your lawyer checks before a new-build closing
Before closing, the lawyer compares builder documents and adjustments with the Agreement of Purchase and Sale, searches title, reviews lender instructions, arranges title insurance where appropriate, receives funds and registers the transfer and mortgage electronically. The work is aimed at ensuring that the documents, funds and registered title match the deal being completed.
In Ontario, transfers and mortgages are generally registered through the Ontario electronic land registration system. The lawyer reviews the registered title and closing documents, but the scope of title insurance is policy-specific and should be explained in relation to the particular transaction rather than assumed to cover every risk.
The statement of adjustments is the closing accounting between buyer and builder. It may include the purchase price balance, deposits credited, upgrades, taxes, levies, utility or meter-related items, warranty-related charges and other amounts. Each charge should be matched to a contractual basis or other proper closing authority before the buyer is asked to provide funds.
Provide your lawyer with the complete signed agreement, all amendments, receipts, builder notices, mortgage contact information and identification as early as possible. Respond quickly when the lawyer requests insurance confirmation, lender documents or closing funds, because registration cannot be completed until the required documents and funds are available.
Buyers outside the Greater Toronto Area may also need local assistance. Our real estate lawyers in brantford Ontario can discuss Ontario real estate transactions and the documents required for the particular property.
Moving into a new build checklist: first day and first week
The first thing to do when moving into a new house is secure access and photograph its condition before belongings cover surfaces or block equipment. In the first week, test systems during ordinary use and report newly noticed deficiencies in writing using the applicable process.
Use this moving into a new build checklist on possession day:
- Collect and count keys, fobs, garage remotes, mailbox keys and access codes.
- Photograph rooms, finishes, appliances, visible deficiencies and accessible utility meters.
- Locate the main water shutoff, electrical panel, thermostat, mechanical equipment and any sump pump.
- Confirm that electricity, gas, water and any required utility accounts are active or arranged.
- Test taps, toilets, drains, appliances, lights, locks, doors and accessible windows.
- Collect manuals, warranties, appliance information and builder service contact details.
- Back up PDI and move-in photographs, and store them with the agreement and closing documents.
In the first week, look again for leaks under sinks, slow drains, moisture marks, sticking doors, uneven heating or cooling, appliance problems and damage that was hidden during the PDI. Photograph the issue, state the date and location, and report it through the builder or warranty process in writing.
Warranty, deficiencies and when to get legal advice
Use the current Tarion materials and your project documents to identify applicable warranty coverage and reporting steps, and report concerns in writing with dated evidence. Do not rely only on a generic calendar, because forms, deadlines and processes can depend on the type of home and the relevant possession or closing dates.
Keep the completed PDI form, builder responses, service reports, photographs, invoices and every notice in one folder. Describe the problem factually, identify the room or location, include the date it was observed and distinguish urgent concerns, such as an active leak, from cosmetic deficiencies.
Legal review may be appropriate when the dispute concerns contract scope, a promised item not delivered, possession rights, title, an adjustment not authorized by the agreement, deposit issues or unresolved closing funds. A repair request can become a legal issue when the parties disagree about what the builder was required to provide or who must pay.
New-build home checklist FAQ
What should I ask a builder before buying a new construction home?
Ask for the full agreement package, exact deposit schedule, features sheet, list of model-home upgrades, lot premium, HST wording, adjustment clauses, expected dates, assignment restrictions and deficiency process. Ask each question in a way that can be answered in writing and compare the response to the Agreement of Purchase and Sale.
What are the first things to check in a new house?
First check access items, water fixtures, drains, appliances, doors, windows, locks, heating or cooling controls and visible leaks or damage. Photograph the home before moving boxes and furniture make later comparison difficult.
What is the first thing to do when moving into a new house?
Secure all keys and access devices, photograph the home’s condition and locate safety and utility controls. Then test essential water, electrical, heating and locking functions before settling in.
Should I get an independent inspection for a new build?
An independent inspection can be useful if the builder permits access and the inspector can assess meaningful parts of the home at that stage. It should supplement, not replace, the PDI, warranty reporting and legal review of the contract and closing documents.
What should I do if a new construction closing is delayed?
Save the builder’s notice, compare it with the agreement, update your lender or broker and track the effect on your housing, moving and financing plans. Send the notice and agreement to your lawyer if the revised date, notice process or resulting charges are unclear.
When should I hire a real estate lawyer for a new-build purchase?
Involve a lawyer before the contractual review period ends whenever possible, so the agreement, schedules, deposit terms, HST wording and adjustment clauses can be assessed before you are fully committed. If you have already signed, provide the complete file well before closing or interim occupancy rather than waiting for the final documents.
Speak with a Toronto real estate lawyer
Early legal advice can help you understand a new-build agreement, track builder charges and prepare for PDI, interim occupancy or closing with the right documents in place.
Call 416-747-9900 or book a consultation to discuss your matter with LD Law.