Pre-construction and new build real estate agents
A pre-construction real estate agent (often searched for as a “pre-construction realtor”) represents buyers of homes and condos that are not yet built, or are newly built and sold by the builder. The builder’s sales staff work for the builder, and the builder’s purchase agreement is written by the builder’s lawyers. A buyer’s agent who knows new construction is there to read that agreement with you and to tell you what is negotiable.
The agents listed here work with new builds and pre-construction across Canada, including assignment sales, where a buyer sells their contract to someone else before the building is finished.
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Are you an agent? List here freeShould I use a real estate agent for new construction?
In most cases there is no reason not to. Many builders pay a commission to a buyer’s brokerage, so representation often costs the buyer nothing extra, but this varies and should be confirmed with the builder before your first visit, some require that your agent attend the first visit or be named at registration. If you walk in alone and register, it can be harder to bring an agent in later.
A builder’s agreement differs from a resale offer. It is long, it favours the builder, and it allows the builder to change the closing date, the finishes and sometimes the size within limits. Your agent and your lawyer should both read it, ideally before you sign or within any rescission period.
Deposits, closing costs and the cooling-off period
Pre-construction deposits are usually paid in stages over the construction period, and the total can be substantial. Ask how deposits are protected in your province: some are held in trust and some are covered by a new home warranty program up to a limit. Ask too what the agreement says about adjustments on closing, which can add development charges, utility connections and other costs to the price.
Ontario gives buyers of new condos a statutory cooling-off period after signing, during which they can cancel; other provinces handle rescission differently, and new freehold homes are often treated differently from condos. Check what applies before you rely on it.
Assignment sales and occupancy fees
An assignment sale transfers your right to buy the unit to someone else before it closes. Whether you can assign, and what it costs, depends on the builder’s agreement; many require the builder’s consent and charge a fee. Tax treatment of the profit can differ from an ordinary sale, so speak to an accountant before you list.
In Ontario, condo buyers often move in before the building is registered and pay occupancy fees, a monthly charge to the builder that covers estimated interest, taxes and common expenses, until title transfers. Occupancy fees are not mortgage payments and build no equity. Plan for that period, which can last months.
Common questions
What is an assignment sale?
The sale of a purchase contract, rather than a finished home: the original buyer assigns their right to buy the unit to a new buyer before closing. The new buyer takes over the builder’s agreement. Builders usually control whether and how assignments can happen, and the tax treatment can differ from a regular sale.
Do I pay my agent if I buy pre-construction?
Often not directly, because many builders pay a commission to the buyer’s brokerage. Confirm it with the builder and set it out in your buyer representation agreement, and register your agent with the builder at or before your first visit.
Can a pre-construction closing date change?
Yes. Builder agreements usually allow the builder to extend the closing date, within limits set by the agreement and, in some provinces, by the new home warranty program. Read the delay provisions with your agent and lawyer before you sign.
Will my pre-construction condo appraise at the price I paid?
Not necessarily. The lender appraises the unit at closing, sometimes years after you agreed the price. If the market has softened, the appraisal can come in lower, and you must cover the gap. Keep a margin in your budget for that possibility.