What happens to a pre-construction condo agreement if the original buyer dies before closing?

If the original purchaser of a new-construction condo dies before the final closing, the purchase agreement does not automatically terminate — it becomes an asset of the estate. The estate trustee (executor) steps into the deceased's contractual position and is responsible for completing the transaction or for taking steps to transfer or wind up the agreement.

Some purchase agreements contain provisions specifically addressing death, which may allow the estate or a beneficiary to be substituted as the buyer with the builder's consent. Review the agreement carefully for any such clause.

If the estate does not have the financial resources to complete the purchase, the estate trustee will need to either negotiate a mutual release with the builder, find an assignee (subject to the assignment restrictions in the agreement), or default and face the resulting claims against the estate. The builder may have remedies for non-completion, including forfeiture of deposits.

Tarion's warranty and deposit protection do not change simply because the original buyer has died — the estate still holds those rights. However, Tarion claims would be made by the estate trustee, not the deceased.

Because of the complexity involved, estates holding new-construction agreements should consult both an estate lawyer and a real estate lawyer promptly after the death, especially if a closing is approaching.