Buying Pre-Construction in Richmond Hill: 7 Things to Know Before You Sign

With resale prices in Richmond Hill and across York Region staying high, more buyers are looking at pre-construction — new condos and townhomes bought directly from a builder, months or years before they're finished. Done right, it can be an excellent way to secure today's pricing, customize your finishes, and move into a brand-new home with a full Tarion warranty. Done carelessly, it can be an expensive lesson.

I've guided many clients through pre-construction purchases across Richmond Hill, Markham, and the GTA. Here are the seven things I tell every buyer before they sign.

1. Research the builder, not just the floor plan.

The model suite is designed to make you fall in love. Do your homework first: how many projects has this builder completed, what's their reputation for on-time delivery, and how have past projects held their value? A builder's track record matters far more than a glossy brochure. Talk to a realtor who has actually closed deals with that builder before.

2. Understand the occupancy and closing timeline.

Pre-construction units often come with an occupancy period — you move in and pay an occupancy fee to the builder before final closing and title transfer months later. Get clear, written estimates of both dates, and know that delays are common in this industry. If you're currently renting or selling, your timing plan needs to survive a delayed closing.

3. Read the fine print on deposits and pricing.

Deposit structures in Ontario typically reach 20 per cent for condos, paid in stages — but schedules vary. More importantly, understand what's actually included in the price: which appliances, finishes, parking, and locker come standard, and what counts as an upgrade. The base price is rarely the real price.

4. Know the closing costs unique to new builds.

Buying new isn't like buying resale. Budget for development charges and levies (often capped in the agreement — make sure there IS a cap), HST considerations (builders usually include HST in the price, but verify how the new housing rebate is handled), and Tarion enrolment fees. These can add tens of thousands of dollars at closing if you haven't planned for them.

5. Get a lawyer who knows pre-construction.

Your Agreement of Purchase and Sale is a long, builder-drafted document with clauses you'll never see in a resale deal — assignment restrictions, delayed closing provisions, and material substitutions. Have a real estate lawyer experienced with new builds review it during your cooling-off period. In Ontario, you get a 10-day cooling-off period on pre-construction condo purchases; use every bit of it.

6. Think about assignment potential.

Plans change — careers, families, markets. Before you buy, check whether your contract allows you to assign (sell) the unit before final closing, and under what conditions and fees. Some builders restrict or prohibit assignments. Keeping that option open is one of the smartest protections a pre-construction buyer can have.

7. Location within the development matters.

Just like resale, location is everything — even inside a new project. Ground-floor units near parking ramps, units facing future phases, or suites under amenity spaces can carry noise and privacy trade-offs. And study the neighbourhood plan: what's zoned around the site, where the transit and schools are going, and how the area is likely to grow over the next five years. In Richmond Hill and York Region, that growth story is one of the strongest reasons to buy pre-construction in the first place.

The bottom line

Pre-construction rewards informed buyers. The incentives — phased deposits, price locks, new-home warranties, and modern layouts — are real, but only if you understand the contract you're signing and the timeline you're committing to.

If you're considering a pre-construction purchase in Richmond Hill or anywhere in York Region, contact M2Team before you walk into a sales centre. We'll help you evaluate the builder, the floor plan, the price, and the fine print — so you buy with confidence, not just excitement.

Note: The Bank of Canada's next interest rate decision is scheduled for October 28, 2026. If you're weighing pre-construction against resale, the rate environment matters — reach out and we'll talk through both options for your situation.