Buying a pre-construction property can be exciting because you get a brand-new home or condo, modern finishes, and the chance to invest in a growing market. But before you sign on the dotted line, there’s one step you should never skip: having a real estate lawyer review your purchase agreement contract. This is one of the most important (and often overlooked) steps in the pre-construction buying process.

Why A Legal Contract Review Matters

A lawyer should always review a pre-construction contract for a buyer because these agreements are very different from a standard resale purchase:

The Contract Protects the Builder - Not You: Pre-construction agreements are written by the builder’s lawyers, which means they’re designed to protect the builder’s interests, not yours. Your lawyer will make sure you fully understand what you’re agreeing to and flag anything that could put you at risk (e.g. material escalation clauses).
Hidden Fees Can Add Up: Things like development charges, utility hook-ups, and HST aren’t always obvious in the contract. A lawyer will identify these “adjustments” and, in can often negotiate to have them capped so you aren’t hit with unexpected costs at closing.
Protecting Your Deposit: Your deposit is often tens of thousands of dollars. A lawyer ensures it’s properly protected under provincial rules and held in-trust according to the law so you don’t lose your money if the project doesn’t move forward.
Assignment Rights: Thinking of selling your unit before closing? Some contracts allow it, others don’t or they charge a hefty fee. Your lawyer will confirm your assignment rights so you’re not caught off guard.
Delays Happen: Builders usually give themselves the right to delay your occupancy or closing date. A lawyer will help you understand how much flexibility the builder has and what your options are if the project is pushed back (e.g. Cancellation or Delayed Occupancy Inspection).
Usage Restrictions: Some builders place limits on rentals or short-term rentals (like Airbnb) and the ability to rent your unit during occupancy. If you’re buying as an investment, this could directly affect your strategy. Your lawyer will flag any restrictions upfront.
Cooling-Off Period Protection: In many provinces, you get a short “cooling-off period” after signing, where you can cancel your purchase with no penalty and have your deposit returned. A lawyer can use this time to carefully review the agreement and confirm if the deal makes sense for you.
Financing Clauses: Your contract may have strict timelines for mortgage pre-approval. A lawyer makes sure these terms won’t put your deposit at risk if financing takes longer than expected.

You don’t know what you don’t know and an experienced real estate lawyer will have seen hundreds of pre-construction contracts and knows what to look for - trust a professional to safeguard your investment.

How Much Does it Cost?

It varies greatly but most lawyers that specialize in pre-construction new build construction agreements often charge from $50 to $200 (upwards of $800). If you close your deal using the same lawyer, many will credit the cost of the review against your final closing statement, effectively making the review free.

One of the biggest mistakes I see pre-construction buyers making is not doing a lawyer contract review because they want to save a few hundred dollars on a massive, life-changing investment. A pre-construction legal review isn’t just a formality - it safeguards you against costly surprises, explains your rights, and helps you negotiate better terms - potentially saving you tens of thousands of dollars and years of stress later. Just do it.

Contact me if you have any questions or need a referral to a real estate lawyer to review your contract.