When you’re buying into a big condo development, here’s something important to know: you won’t get your keys all at once when the building is “done.” Instead, developers hand over units in phases as different sections get completed. Usually, they’ll finish the lower floors first and work their way up.

Once enough units are ready and the shared spaces like lobbies and amenities are functional, that’s when the occupancy period kicks in. Think of this as a transitional phase where you can move in and live there, but you’re not technically the legal owner just yet.

During occupancy, you’ll pay what’s called an occupancy fee to the developer each month. This fee covers three main things: interest on your remaining balance, estimated property taxes, and projected maintenance costs. Essentially, it’s like paying rent on the place you’re about to own.

This occupancy period can be anywhere from a few weeks to well over a year, depending on how quickly the rest of the building gets finished. You’re stuck paying this monthly fee until the entire building is completed and officially registered with the municipality. Only then do you start making regular mortgage payments and get the actual deed in your name.

If you’re planning to be an investor, it’s important to know that most developers won’t let you rent out your unit during occupancy. Break this rule, and you could face serious penalties or even lose your purchase agreement. This creates a real challenge for investors who end up paying monthly occupancy fees without any rental income coming in.

The good news? Some forward-thinking developers now offer special incentives that allow rental during occupancy, but you need to negotiate this upfront when you’re making your purchase. This is where having experienced agents like those at RE/MAX Team Paliwal becomes invaluable. Our established relationships with builders give us the leverage to secure these types of rental permissions that can save investors thousands of dollars over the occupancy period.

When you buy a new home in Ontario, you automatically get coverage through the Tarion Warranty Program. This isn’t just basic protection – it’s comprehensive coverage that shields you from construction problems, poor workmanship, and major structural issues. The program also includes safeguards for delays and deposit protection.

Your warranty kicks in the moment you get your keys, even if you’re moving in during the occupancy phase of a condo development. For the first twelve months, you’re protected against any problems with materials or workmanship quality. This means everything from your flooring and kitchen cabinets to paint and fixtures needs to be in proper, move-in condition.

During your second year, the focus shifts to your home’s major systems. If you run into problems with plumbing, heating, electrical work, or exterior elements like brickwork and siding, you’re covered. Water penetration issues affecting your basement or foundation walls also fall under this protection.

The most comprehensive coverage lasts for seven full years and addresses serious structural problems. This includes anything affecting load-bearing elements, your foundation, or roofing systems – basically, the bones of your home.

Sometimes builders miss their promised closing or occupancy dates. When this happens (and it’s not due to something you did or completely unforeseeable circumstances), Tarion steps in with compensation to help offset the inconvenience and costs.

You can review the complete coverage details for condos here, and for freehold homes here.

Tarion also safeguards your deposit money. For homes purchased after January 1, 2018, here’s how it works: if your purchase price is $600,000 or under, you get up to $60,000 in deposit protection. For pricier homes, you’re covered for up to 10% of the purchase price, with a ceiling of $100,000.

Condo buyers get slightly different treatment – if the builder cancels your agreement, they must return your deposit within 10 days. If they don’t comply, Tarion provides up to $20,000 in coverage.

More details about deposit protection can be found here.

Before you officially move in, you’ll complete what’s called a Pre-Delivery Inspection (PDI). This is your chance to walk through every inch of your new home and flag any issues you spot. Don’t rush this process – it creates the official starting point for your warranty coverage and serves as your baseline record.

Document everything you notice, no matter how minor it seems. Take photos, make notes, and be thorough. Remember, most warranty issues can be resolved directly with your builder, so approaching them promptly and cooperatively often leads to faster solutions.

Once you’ve committed to a preconstruction purchase, keeping tabs on how things are progressing becomes really important. Here in Ontario, everything from unpredictable weather to workforce issues and supply chain hiccups can push back completion timelines – sometimes significantly.

The good news is that most developers understand buyers want to stay informed. The larger, more established builders like Tridel have gotten really good at this, sending out regular progress reports complete with photos and video updates showing exactly what’s happening on-site.

Smaller developers might use different approaches – you might get updates through monthly newsletters, private Facebook groups for buyers, or direct email campaigns. The key is making sure you’re signed up for whatever communication method your builder uses.

Here’s something that might surprise you: your realtor often gets information about delays, feature changes, or important project updates before you do. That’s because they maintain direct relationships with the sales teams and project managers. Make it a habit to touch base with your agent regularly – they’re your early warning system for any developments that might affect your timeline or budget.

Some builders will organize periodic site visits where you can actually walk through your future home during construction. These tours can be incredibly valuable for understanding progress and spotting any potential issues early. Just remember to follow all safety protocols if you participate.

Keep a close eye on three critical milestones: when interim occupancy is expected to begin, your anticipated final closing date, and any important notice periods where you need to make decisions or take action. Builders are required to give you formal notice about these events, but it’s smart to expect some flexibility in the timeline.

While nobody likes delays, they’re common enough that you should build some buffer time into your planning. This is especially important for your financial preparation – you want to be ready whether things move faster or slower than originally projected.

After what might feel like forever, you’ve reached the final stage of your preconstruction journey. The building is complete, the municipality has given its official approval, and it’s time to make this property officially yours. If you’ve been living through the occupancy phase, you’re probably more than ready to start making regular mortgage payments instead of those monthly occupancy fees.

This is where your lawyer becomes your MVP. They’ll manage all the complex paperwork involved in getting the deed transferred into your name, ensuring the property gets properly registered, and handling the payment of various closing costs. The key here is preparation – make sure you’ve got all your documentation organized and your finances lined up well before the big day.

You’ll receive what’s called a Statement of Adjustments, which is basically a comprehensive breakdown of every cost associated with your closing. This includes things like development charges, land transfer taxes, and adjustments for utilities. Don’t just glance at it – go through every line item with your lawyer to make sure you understand what you’re paying for.

This is also your moment to finalize everything with your mortgage lender. Even if you got pre-approved ages ago, it’s worth double-checking that your financing terms still work for your current situation. Interest rates, lending policies, and your personal financial picture might have shifted since you first applied

Once all the documents are signed and the title is officially in your name, you’ll need to take care of a few housekeeping items. This usually means contacting utility companies to transfer accounts into your name and setting up any services you’ll need.

If you’re now a condo owner, this is when your monthly maintenance fee obligations start. Freehold homeowners can skip this particular expense, but everyone needs to budget for their new monthly housing costs.

This closing day represents the end of what’s likely been a marathon process and the start of an exciting new phase of homeownership.

We realize there’s been a lot of information to absorb throughout this entire process. That’s exactly why we’re here to guide you through every detail of preconstruction purchasing. Whether this is your first venture into new construction or you’re a seasoned buyer looking for a refresher, having expert support ensures you won’t overlook any critical steps along the way!

As one of the most trusted and highly reviewed real estate teams in the GTA with over 240+ reviews, RE/MAX Team Paliwal is ready to serve you with integrity, expertise, and experience. Join hundreds of happy preconstruction buyers and contact us today to schedule your no-obligation buyer consultation meeting! You can also visit our website at: www.realvaluehome.ca to find the latest preconstruction projects in the GTA.