Buying new.

Harp Sokhal

Residential & Commercial Real Estate Broker

How is buying pre-construction different from buying a resale home?

With a resale, you visit, you inspect, you sign an offer, and you take possession a few weeks later. With pre-construction, you buy from plans: you pick a model, a floor, finishes, from drawings and a model unit. The home does not exist yet.

The big difference is time and money. Instead of a single down payment at the end, you pay deposits in stages while the building goes up. And instead of possession in a few weeks, you wait months, sometimes more than a year. The delivery date written into the contract is a target, not a guarantee: construction timelines shift, and a good contract spells out what happens when they do.

• You buy a plan, not a unit you can inspect today.
• Your down payment is paid in stages, not in one block at the end.
• The listed price is often before tax, because new homes are taxable.
• The delivery date can be pushed back; the contract governs delays.
• You choose finishes, and sometimes options, early in the process.

How do the deposits work, and is my money protected?

Your deposits are staged. Typically a first amount when you sign the preliminary contract, then further instalments at agreed milestones, sometimes tied to the construction schedule. The contract sets out each amount and each due date. You should never have to guess how much, or when.

The crucial part is where that money goes. Your deposits should not land in the developer's operating account. For a new home covered by the warranty, deposits are protected. They are held in trust or covered by the warranty plan, so that if the project fails or the builder defaults, your money stays safe under the terms of the warranty plan. This is exactly the kind of clause I read line by line before a client signs.

Why is there GST and QST on new homes but not on resales?

Because a new home is a new product sold by a builder or developer: it is subject to GST (federal) and QST (provincial). A resale home is generally not taxable. This is the most misunderstood thing about buying new, and the one that surprises people most when it is time to run the numbers.

Watch the listed price: on many projects it is shown before tax. GST and QST are added on top, and on the price of a home, that is not a rounding error. Always ask whether the price is "tax included" or "before tax," and get the full amount, taxes in, confirmed before you reason about your budget and your down payment.

The new-housing rebate

There is a mechanism to rebate part of the GST and QST when you buy a new home that becomes your primary residence (or an eligible relative's). In practice, a portion of the tax comes back to you, either credited directly by the builder who applies it to the price, or claimed by you afterward. The eligibility conditions, the rates, and the price thresholds that cap the rebate change and depend on your situation.

I will never quote you a rebate figure from memory. The rates, price caps, and conditions shift. Confirm the exact amount and your eligibility with Revenu Québec, the Canada Revenue Agency, and your notary before you count on it in your budget. On a project I know, I will tell you how the builder handles the rebate in its pricing.

Occupancy and the notary signing: why are there two dates?

On a new condo especially, you have to separate two moments. Occupancy is when you can move into your unit, once it is ready. The final deed of sale at the notary, the legal transfer of ownership, can come later, once the declaration of co-ownership is published and the building is far enough along.

In between, on some projects, you occupy your unit without yet being its official owner, and you pay the developer an occupancy fee until the final signing. It is neither a second mortgage nor rent lost in the usual sense. It is a reality specific to new builds that you need to understand and budget for in advance. I make sure my clients know exactly what their two dates are and what they pay in between.

What does the GCR warranty cover on a new home?

The Garantie de construction résidentielle (GCR) is the mandatory warranty plan for most new residential buildings here: new single-family homes, and buildings held in divided co-ownership up to a certain size. It protects the buyer if the builder does not meet its obligations.

In plain terms, the warranty covers in tiers over time: the deposits you paid if the contract is not carried out, construction defects and workmanship issues visible at handover, and then, over longer periods, latent defects and major structural defects. It is your safety net when something is wrong with the construction itself. Always confirm your project is registered with the GCR. I check the builder's accreditation before I recommend a project.

The warranty has specific tiers and limits that evolve. For the exact coverage that applies to your building, refer to the GCR (garantiegcr.com) and read your warranty contract. Do not rely on a summary from memory for a precise amount or deadline.

What are VIP allocations, and why buy through a broker who works the project?

New projects do not hit the open market all at once. They sell in phases. The best units (the good floors, the nice exposures, the launch pricing) often go during VIP allocations or first-access rounds, before the general public opening. By the time you see the mass-market advertising, some of the most desirable inventory is already spoken for.

This is exactly where a broker who works the project makes a concrete difference. Because I have direct relationships with developers and their sales teams, my clients can be positioned early, on the right units, at launch terms. And I read the preliminary contract in their interest, not the seller's. The on-site sales office represents the developer; I represent you. Look at my Projects page: that is where I share the projects I am working right now.

What should you verify before signing the preliminary contract?

The preliminary contract is the real commitment. Here, buying a new co-ownership unit from a developer comes with a legal cooling-off period that lets you withdraw within a short window after signing. Use that time to reread everything with a clear head, with someone in your corner.

1. The price, and whether it is before or after tax, then the true total with GST and QST in.
2. The deposit schedule: each amount, each due date, and where the money is held.
3. The expected delivery date and what the contract provides if it is delayed.
4. The occupancy vs. deed-of-sale distinction, and any occupancy fee payable in between.
5. The project's registration with the warranty (GCR) and the builder's accreditation.
6. Included finishes vs. options, with the precise list and the price of any extras.
7. The assignment clause: whether you may resell your contract before delivery, on what terms, and at what cost.
8. The legal cooling-off period and how to withdraw if you need to.

A word on assignment clauses

Assigning your contract means selling your right to buy the unit to someone else before you have even taken possession. Some contracts forbid it, others allow it with fees and the developer's consent. If you think your situation might change before delivery, or if you are buying with an eye on appreciation, this clause is not a detail. We read it together before you sign, never after.

Buying New Construction or Pre-Construction: An Insider's Guide · July 11, 2026