Buying a newly built home is an exciting milestone. Many buyers assume that purchasing a brand-new house means avoiding common real estate headaches—no hidden defects, no previous owners, and no unexpected repairs. However, while a new build comes with benefits, it also presents unique challenges that buyers should be aware of.
New Home, New Challenges
When purchasing a new home, it’s easy to assume that everything will be perfect. After all, you’re getting a property that has never been lived in, built with modern materials and construction standards. However, new homes can come with their own set of issues, including delays, construction defects, and warranty concerns.
One of the biggest surprises for buyers is the potential for closing delays. Builders often provide estimated completion dates, but unforeseen circumstances—such as supply chain issues, weather delays, or permit approvals—can push timelines back. If you’re selling your current home or planning a move based on a specific closing date, these delays can create logistical and financial challenges.
Understanding Your Tarion Warranty Protection
In Ontario, new homes are covered under the Tarion Warranty Program, which provides protections for buyers against certain defects. This includes coverage for major structural issues, water penetration, and material or workmanship defects. However, it’s important to understand what is and isn’t covered under the warranty.
Buyers should conduct a thorough pre-delivery inspection (PDI) before taking possession of their new home. This is your chance to document any issues, from cosmetic concerns like paint imperfections to more serious problems like plumbing or electrical faults. Keeping a detailed record ensures that you can file warranty claims if necessary.
Hidden Costs of New Builds
Many buyers focus on the purchase price of their new home but don’t always anticipate additional costs. Development fees, HST on upgrades, and landscaping expenses can add up quickly. If you’re buying a home in a new subdivision, you may also face delays in receiving services such as paved driveways, fences, or sod installation.
It’s also important to review your Agreement of Purchase and Sale carefully. Some builders include clauses that allow them to make changes to the layout, materials, or lot size without notice. Understanding these clauses in advance can help prevent surprises down the road.
Protecting Yourself as a Buyer
Before signing a contract for a new build, consider consulting with a real estate lawyer. A lawyer can help you review your Agreement of Purchase and Sale, explain any potential risks, and ensure that your rights are protected.
More information? We’re here to help – realestate@wardlegal.ca This WARDS LAWYERS PC publication is for general information only. It is not legal advice, nor is it intended to be. Specific or more information may be necessary before advice could be provided for your particular circumstances.
