When you buy pre-construction, you’re buying a promise. The floor plan, the finishes and the completion date are only as good as the company behind them. A strong builder can turn a long wait into a smooth experience; a weak one can mean years of delays, poor quality and stressful closings. Here’s how to vet a developer before you sign.
1. Look at what they’ve actually built
Ask for a list of completed projects and visit a few. Walk the lobby, look at the hallways, and talk to residents if you can. Look for consistency: does the builder deliver similar quality across many projects, or does it vary? On Explore New Homes you can browse builder profiles and their projects, for example Tridel, The Daniels Corporation, Mattamy Homes, Great Gulf and Fieldgate Homes.
Filtering by completed projects in your city is a quick way to see a builder’s finished work.
2. Check licensing and the public record
In Ontario, new-home builders and vendors must be licensed by the Home Construction Regulatory Authority (HCRA). The Ontario Builder Directory shows a builder’s licence status, past projects, any convictions or conditions on their licence, and warranty information such as chargeable conciliations and claims paid by Tarion. Ten minutes in the directory can tell you a lot.
Other provinces have their own systems: British Columbia’s licensing is run by BC Housing, and Alberta requires builders to be licensed under its New Home Buyer Protection rules.
3. Ask about delays on past projects
Every builder has had a project run late; the question is how late, and how they handled it. Compare the first tentative occupancy date in past agreements with the actual date. In Ontario, freehold and condo agreements include a Tarion Addendum that sets out how and when a builder can extend dates, and when buyers are entitled to delayed-closing compensation. Our Tarion warranty guide explains this protection.
4. Understand where this project stands
- Approvals: is the site rezoned and is a site plan approved, or is the project still in planning?
- Sales: lenders usually require a high percentage of units sold before they finance construction.
- Construction financing and start: has the builder secured a construction loan, and is there activity on site?
Projects early in the process carry more risk of delays, redesign or cancellation. That’s not a reason to avoid them, but it should be reflected in your expectations and budget.
5. Read the fine print for builder-friendly clauses
Have your lawyer review the agreement during the condo cooling-off period (see our 10-day cooling-off guide), or make your freehold offer conditional on lawyer review. Watch for:
- Uncapped development charges and levies, which are added at closing.
- Broad rights to change the floor plan, square footage or materials.
- Restrictive assignment clauses (see our assignment guide).
- Extensive termination rights for the builder.
6. Judge after-sales service
How a builder handles your pre-delivery inspection and warranty requests matters for years after you move in. Ask owners in completed buildings how deficiencies were handled and how responsive customer care was. Our guide to the pre-delivery inspection covers what to expect.
7. Don’t confuse marketing with quality
Big-name architects, celebrity interior designers and impressive sales centres are marketing. They can signal a premium project, but they don’t guarantee delivery. Weigh them below track record, financial strength and warranty history.
A quick developer checklist
- Licensed, with a clean public record
- Several completed projects you can visit
- Reasonable record on delays
- Clear approvals and financing status for this project
- Fair agreement terms (caps on levies, reasonable assignment rules)
- Positive feedback from existing owners on service
Once you’ve shortlisted builders, compare their current projects across cities like Toronto, Vaughan, Markham and Oakville. New to the process? Start with our first-time buyer’s guide.
Frequently asked questions
Is a bigger builder always safer?
Large builders usually have deeper financial resources and more experience with approvals, but smaller boutique builders can deliver excellent quality. Judge each on its record.
What happens to my deposit if a builder goes bankrupt?
In Ontario, condo deposits must be held in trust or insured, and Tarion provides deposit protection up to set limits for both condos and freehold homes. Recovery can take time, so check the builder carefully up front.
General information only. Confirm licensing details directly with the HCRA or your provincial regulator, and have a real estate lawyer review your agreement.
