Thinking of Buying Pre-Construction Home? Why Your Lawyer Should Be Your First Call
So, you’ve found the perfect floor plan, the amenities look incredible, and you’re ready to sign
on the dotted line for a brand-new home. Before you do, there is a crucial step you cannot skip:
getting a professional legal review.
I often tell my clients that while I can’t provide specific legal advice without knowing the details
of their unique transaction, my goal is to encourage you to seek proper advice before
committing to what is likely the biggest transaction of your life.
Here is why having a real estate lawyer review your purchase agreement is essential.
- Navigating the “Fine Print”
Modern pre-construction agreements are rarely short. Most of these documents are 45 to 50
pages long, and in some cases, they can exceed 250 or even 300 pages. They are filled with
fine print that is intentionally complicated and hard to understand. A lawyer’s job is to explain
the deal to you clearly so you truly understand what you are getting yourself into. - Identifying Red Flags
Unfortunately, the real estate world isn’t without its risks. Every once in a while, a review reveals
significant red flags. For instance, there have been cases where individuals pretend to be
builders without actually owning real estate or having any intention of building; they simply sign
purchase agreements and abscond with the deposit money. A legal review helps ensure the
person on the other side of the contract is legitimate. - Negotiating Better Terms
I have rarely seen a new build or pre-construction deal where we couldn’t find a series of
amendments to improve the deal for the client. When we review your agreement, we often look
to:
● Waive specific fees.
● Cap development charges or other hidden costs.
● Adjust deposit structures.
The cost of getting these amendments is simply the act of asking the builder for them—but you
can’t ask if you don’t know what to look for.
- Timing is Everything
The most important rule is to send the deal to your lawyer before it becomes firm and
binding.
● For Condos: There is usually a 10-day cooling-off period where we can review and
request changes.
● For Non-Condos: There is typically a solicitor review period.
If the deal is already firm, we can still review it, but we lose the power to negotiate
amendments. The earlier you get the document to your lawyer, the more time they have to
identify risks and suggest improvements.
Ready to sign?
Don’t walk into a massive financial commitment blindly. If you have a purchase agreement in
hand, let’s take a look at it together while you still have the power to negotiate.
Disclaimer: This post does not constitute legal advice. Every transaction and personal situation is unique.
