New Homes

There are special procedures when purchasing a new home rather than a resale home. First, although it is recommended that you have any real property agreement of purchase and sale reviewed by and explained to you by a lawyer before signing it, it is extremely important to do so when buying a new home. Whereas there are standard forms used for resales, there is no standard form used by builders. In the case of an agreement to purchase a newly constructed condominium from a builder, but not necessarily a newly renovated building such as lofts, the Condominium Act provides you with a cooling-off period. There is no statutory cooling-off period for freehold homes. If you propose to sign the agreement, make it conditional in writing for a few days to allow us to review it with you.

The process for closing the purchase of your newly constructed home is also different from the purchase of a resale home. A few days prior to the occupancy, you are required to conduct a pre-delivery inspection (PDI) of the property with a representative of the builder. If the builder has not contacted you within a week before the scheduled occupancy date, then you should contact the builder to arrange the PDI. At the PDI, you will complete document called a Certificate of Completion and Possession and a Pre-Delivery Inspection Form under the Ontario New Home Warranty Plan Act (ONWHP). Ensure that all deficiencies are written on the Pre-Delivery Inspection Form. If you fail to ensure that a deficiency is recorded on the Pre-Delivery Inspection Form, you may not have any recourse against the builder or Tarion Warranty Corporation the administrator of ONWHP or your recourse may be limited or more difficult to obtain. If you are obtaining mortgage financing, then we will require a copy of the completed Certificate of Completion and Possession delivered to us before closing (we will not be able to complete the transaction without this document). On or before the date for your PDI, the builder is required to provide you with a document called the Homeowner Information Package (HIP). The HIP explains the PDI procedure and your rights and remedies. If the builder has not already provided you with the HIP, we recommend that you obtain a copy from Tarion. You may further want to obtain additional information from Tarion regarding its one-, two- and seven-year warranties.

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