What is the difference between a spec unit and a unit with custom selections in new construction?

In new-construction real estate, a "spec unit" (short for speculative unit) is one that the builder constructs using standard or pre-selected finishes without input from a specific buyer. The builder builds to a standard specification and then sells the completed or nearly-completed unit. A unit with custom selections is one where a buyer has gone through the design centre process and chosen specific finishes — flooring, cabinetry, countertops, fixtures — before or during construction.

The practical difference matters at several points. A spec unit can close quickly because it is already built or nearly so, but you take the finishes as they are. A custom-selection unit requires the buyer to engage with the design process early and wait for construction to complete, but you have greater control over the finished product.

From a legal standpoint, spec units should be clearly documented: the purchase agreement should specify exactly which finishes are included. For custom-selection units, all selections must be documented in signed addenda so there is no dispute about what was agreed. In both cases, the PDI is the opportunity to confirm that the finishes delivered match what was documented.

Spec condos may also be slightly different in terms of Tarion timelines — if the unit is already built, the possession date may be imminent, which compresses the time you have for legal review.