Buying a unit in a building that is not built yet, including new soft-loft projects, means signing with a builder and waiting. Two topics come up often: what happens when the builder is late, and selling the agreement before closing.
Delayed occupancy (Tarion)
New condominium purchase agreements in Ontario include Tarion's addendum and statement of critical dates. Tarion describes the key dates and remedies as follows (as of October 16, 2026):
- The Firm Occupancy Date is the date the builder committed to. If it is missed, the builder must set a Delayed Occupancy Date and the buyer is entitled to delayed occupancy compensation.
- Compensation is capped at $7,500. It includes a fixed $150 per day for living expenses (no receipts needed) and other costs such as extra moving and storage (receipts needed).
- If the builder fails to give 10 days' notice of a delay, the buyer receives $1,500.
- If occupancy is not provided by the Outside Occupancy Date, the buyer has a 30-day period in which to terminate, with a refund of money paid plus interest, and delay compensation.
- Claims go to the builder within 180 days of occupancy or termination, then to Tarion within the first year of possession, or 365 days after termination, if unresolved.
Tarion also warns that agreeing to an amendment that changes dates may waive compensation. Have a lawyer review any proposed amendment.
Assignment sales and GST/HST
An assignment is a sale of your rights under the purchase agreement before the unit closes. The Canada Revenue Agency states that, effective May 7, 2022, all assignment sales of newly constructed or substantially renovated residential housing are taxable for GST/HST purposes. The amount reimbursing the original deposit is generally excluded from the taxable consideration. Many builder agreements also restrict or charge a fee for assignments, so read the agreement first.
Income tax treatment of an assignment profit is a separate question. Speak with an accountant before listing an assignment.