The Pre-Construction Purchase Agreement is a fundamental document in Canadian real estate development, used when selling properties that have not yet been built or are in the early stages of construction. This agreement is essential for new residential and commercial developments across Canadian provinces, each operating under their specific provincial regulations and warranty programs. The document typically includes detailed specifications of the future property, payment structures, construction timelines, and warranty provisions. It protects both the developer's and buyer's interests by clearly defining responsibilities, establishing milestone payments, and addressing potential construction delays or modifications. The agreement must comply with provincial consumer protection laws, new home warranty programs, and construction standards, while also incorporating necessary disclosures about the development project. It serves as the cornerstone document for pre-construction sales, managing expectations and legal obligations from the initial purchase through to final closing.
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1. Parties: Identification of the Vendor/Builder and Purchaser(s), including full legal names and contact information
2. Background: Context of the agreement, including property development details and purpose of the agreement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the property being purchased, including lot number, unit details, and preliminary specifications
5. Purchase Price: Total purchase price, deposit structure, and payment schedule
6. Deposit Terms: Details of deposit amounts, payment deadlines, and deposit protection measures
7. Closing Date and Occupancy: Estimated completion date, occupancy requirements, and extension provisions
8. Construction Specifications: Overview of construction standards, materials, and finishes
9. Warranties and Representations: Statutory warranties, builder warranties, and representations by both parties
10. Changes and Modifications: Process for handling construction changes, material substitutions, and buyer upgrade options
11. Title and Ownership: Terms regarding property title transfer and ownership conditions
12. Default and Remedies: Consequences of default by either party and available remedies
13. Assignment Rights: Terms regarding the ability to assign the agreement to another party
14. Notices: Requirements for formal communications between parties
15. Governing Law: Applicable laws and jurisdiction governing the agreement
16. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments
1. HST Rebate Assignment: Required when the purchaser is assigning their HST rebate rights to the builder
2. Investment Property Provisions: Additional terms when property is purchased as an investment rather than primary residence
3. Rental Unit Provisions: Specific terms for units designated as rental properties
4. Construction Financing Cooperation: Terms regarding buyer cooperation with builder's construction financing requirements
5. Property Management: Terms for interim property management if applicable
6. Foreign Buyer Provisions: Additional requirements for non-resident purchasers
7. View and Natural Light Disclaimer: Disclaimers regarding future development impact on views and natural light
8. Parking and Storage: Specific terms for parking spaces and storage units if sold separately
1. Schedule A - Legal Description: Detailed legal description of the property and development lands
2. Schedule B - Floor Plans: Preliminary floor plans and unit layout
3. Schedule C - Features and Finishes: Detailed list of included features, materials, and finishes
4. Schedule D - Payment Schedule: Detailed breakdown of deposit and payment structure
5. Schedule E - Construction Specifications: Detailed construction specifications and standards
6. Schedule F - Warranty Information: Details of warranty coverage and process
7. Schedule G - Permitted Changes: Scope of permitted changes and variations during construction
8. Schedule H - Upgrade Options: Available upgrades and their costs
9. Appendix 1 - Site Plan: Overall development site plan
10. Appendix 2 - Disclosure Statement: Required disclosures under applicable laws
11. Appendix 3 - Development Permits: Copies of relevant development permits and approvals
Relevant legal definitions
Clauses
Relevant Industries
Real Estate Development
Construction
Residential Property
Commercial Property
Legal Services
Banking and Finance
Property Management
Urban Development
Architecture and Design
Relevant Teams
Legal
Sales
Construction Management
Property Development
Compliance
Customer Relations
Finance
Quality Assurance
Project Management
Design
Administrative Services
Relevant Roles
Real Estate Developer
Construction Project Manager
Real Estate Lawyer
Sales Director
Contract Administrator
Property Development Manager
Legal Counsel
Real Estate Agent
Compliance Officer
Construction Site Supervisor
Architectural Designer
Financial Controller
Customer Service Manager
Quality Assurance Manager
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