Reading a pre-construction agreement of purchase and sale
By Dinesh Jindal, licensed REALTOR® · Reviewed November 2026
Builder agreements run to dozens of pages. These are the sections that most affect you.
Price and deposits
- Purchase price and what is included (finishes, appliances, parking, locker).
- Deposit schedule: amounts, dates and how to pay.
- HST: inclusive or not, and the rebate assignment.
Dates
- Statement of Critical Dates: tentative, firm and outside dates, and notice rules.
- Early-termination conditions the builder can rely on (approvals, sales thresholds).
Costs on closing
- Adjustments schedule: development charges cap, utility connections, Tarion enrolment and others.
Changes and rights
- Changes to plans, sizes and finishes the builder may make.
- Assignment clause: fees and restrictions.
- Default: what happens if you cannot close.
Ask for in writing
Any incentive promised verbally (extended deposits, capped levies, free assignment, upgrades) must appear in the agreement or an amendment.
Dinesh reviews every schedule with you before the lawyer does. Book a call
Quick answers
Can I negotiate a builder's agreement?
The standard form rarely changes, but incentives (deposit structure, development-charge cap, assignment fee, upgrades) are often negotiable, especially at VIP launch.
Can the builder change my unit or the building?
Most agreements allow reasonable changes to plans, finishes and sizes. Check how much change is allowed before you have any right to a price adjustment or termination.
Should a lawyer review it?
Yes. For condos, use the 10-day cooling-off period. For freehold, ask for a lawyer-review condition before signing.
General information, not legal, tax or financial advice. Programs, limits and rebates change; confirm current rules with Dinesh Jindal, your real estate lawyer and your mortgage professional before you sign.