Real Estate Law: Condominium Purchase- New vs. Resale

A newly constructed condominium can be an attractive option for a prospective purchaser as it provides the purchaser with all the benefits of a newly constructed building, including but not limited to, the fresh appearance of a new building, latest chattels such as the latest appliances, modern lobby and elevators, while at the same time, providing the purchaser an opportunity to customize his or her respective unit.

A prospective purchaser can purchase a new condominium from the developer either before or during the construction phase of the building and certainly well before the condominium corporation has been formed OR the developer may have some unsold units available even after the condominium has been completed and registered.

Advantages of purchasing a new condominium:

• Depending on the state of the market conditions, a lower purchase price.


• Potentially more choices in terms of unit location within the desired building.


• A broader range of options and/or upgrades available. Negotiate with the builder. They want your business, and may be willing to provide you with certain free or reduced upgrades to entice you to purchase from them.


• New home warranty protection through Tarion.


• As a general rule, newer buildings have less risk of having to undergo costly, noisy and intrusive repairs and renovations.

Disadvantages of purchasing a new condominium:

• As the construction may not have begun, you may be purchasing based on artist sketches and floor plans which may be subject to change; hence, you cannot physically see what you are purchasing.


• Your initial deposit will be tied up for the duration of the construction.


• Expect delays. In all likelihood, the construction of your unit may not be completed by the expected date.


• You may be required to move into your unit as part of your interim closing while construction continues in the building with respect to the other units and/or common elements. This can be noisy and disruptive.