Is making an offer on a new build different from a resale home in Ontario?
Yes, the offer process for new construction in Ontario is significantly different from resale. When you buy from a builder, you sign the builder's own Agreement of Purchase and Sale — not the standard OREA form used in resale transactions. Builder contracts are lengthy, heavily weighted in the builder's favour, and often contain provisions that would never appear in a resale offer, such as rights for the builder to change unit specifications, adjust closing dates multiple times, and charge certain additional costs at closing.
In Ontario, builders of new freehold homes and condominiums must be enrolled with Tarion (Ontario's new home warranty program). Unlike new condominiums, new freehold homes carry no statutory cooling-off period — once you sign a builder's agreement for a freehold home, it is binding just as in a resale transaction, unless your specific agreement provides otherwise. New condominiums have their own rescission period under the Condominium Act.
Because builder contracts are complex and one-sided, having a real estate lawyer review the agreement before you sign is especially important — not after. Changes are rarely possible once the contract is signed.
Key takeaways
- Builder contracts are not standard OREA forms and are heavily pro-builder.
- New freehold home purchases carry no statutory rescission period — only new condominium purchases do.
- New condominiums have their own rescission rights under the Condominium Act.
- Have a lawyer review a builder's APS before signing — changes are rare after the fact.