The Do’s and Don’ts of Closing a Pre-Construction Condo
If you’ve secured a pre-construction condo, congrats—you're already ahead of the curve. But here’s where many investors drop the ball: the closing process.
After months (sometimes years) of waiting for your unit to be built, the last 90 days before possession are critical. It’s not just about picking up the keys—it’s about protecting your investment, maximizing your returns, and avoiding the costly mistakes that many investors make at the finish line.
So let’s break down a few of the tops things that you should (and shouldn’t) do as you approach closing day.
Read my Guide on Closing a Pre-Construction Property in Calgary for detailed guidance of every action you need to take to ensure a smooth and stress-free closing.
✅ DO: Get Your Mortgage in Order Early
Just because you were pre-approved two years ago doesn’t mean you’re still in the clear today. Interest rates shift, lender policies tighten, and your financial profile or life situation may have changed.
Do this at least 90 days out:
Reconnect with your mortgage broker or bank - contact me if you need an introduction to one
Lock in a rate if possible
Get clarity on what documents you’ll need to satisfy the lender
Secure a firm mortgage approval at least 30 days before closing
🔗 Pro tip: Use my Cash Flow Calculator to model out your updated mortgage payments. It’ll help you spot any cash flow issues before they become problems.
❌ DON’T: Assume Everything Is Turnkey
A lot of investors think the builder or developer is handling “everything” for them—but that’s rarely the case. You’ll need to:
Hire a lawyer
Coordinate your mortgage
Arrange insurance
Set up utility accounts
Ensure all final documents are accurate
Transfer funds
Attend or schedule your final walkthrough
The trap? Assuming your lawyer or agent is on top of it all. You’re the one closing. Own the process.
✅ DO: Choose the Right Lawyer
In Alberta, your lawyer plays a huge role in closing your deal. They handle:
Reviewing the final statement of adjustments
Coordinating funds with your lender
Ensuring title transfer and registration
Working with the developer to resolve any issues
Pick a lawyer who specializes in new construction closings in Alberta—not just a general real estate lawyer and not your local lawyer or friend/family member. Remember to touch base with them often and engage them before closing day so they’re not scrambling to get documents and finalize the closing process at the last minute.
❌ DON’T: Leave the HST/GST Rebate to Chance
Did you know that as an investor, you may not qualify for the full GST/HST rebate unless your tenant signs a 1 year lease? Or that if you plan to assign the unit or flip it after closing, your rebate will be denied? How about if you are part of a rental guarantee, you likely won’t qualify!
This is one of the most overlooked and misunderstood areas of closing. But it can make or break your ROI.
🔗 Use my HST/GST Rebate Calculator to get clarity on your eligibility before closing day. It’s the easiest way to stay ahead of surprise tax bills.
✅ DO: Review Your Final Statement Like a Hawk
When your lawyer sends over the statement of adjustments, don’t just skim it—study it.
Check for:
Charges you didn’t expect
Missing credits for deposits you’ve already paid
Last-minute builder add-ons
If something looks off, challenge it. Builders make mistakes more often than you think and it’s your lawyers job to have it fixed.
❌ DON’T: Forget to Budget for Closing Costs
On average, expect your closing costs in Calgary to range between $2,500 and $3,500. This includes everything:
Legal fees & disbursements
Land title registration) fees
Appraisal fees
Pre-paid property taxes
If you didn’t plan for these extras, it could throw off your cash flow.
Read my article about Closing Costs — it provides a detailed breakdown of what to expect.
Final Thought: This Is Where Wealth Is Built
Anyone can buy a pre-construction unit. But closing it properly? That’s where you either set yourself up for long-term growth—or get blindsided. I’ve seen people lose $100,000 because they weren’t able to close and they lost everything. This is 100% avaidable.
Closing isn’t just paperwork. It’s your equity. It’s your rental income. It’s your future.
Need a second pair of eyes on your closing strategy?
📅 Book a 1-on-1 consultation with me and let’s make sure you’re stepping into this investment with confidence.
—
Kyle Dovigi
The Condo Millionaire
Real Estate Investor | Consultant | Your Guide to Pre-Construction Success
Real Talk. Honest Advice.
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