The Crucial Role of Legal Review in New Build Home Contracts in Ontario

By Melissa Douglas, Barrister & Solicitor 

Buying a new home is an exciting milestone, but amidst the thrill, it’s crucial not to overlook the fine print of the contract. Having a lawyer review the Agreement of Purchase and Sale before going firm is not just advisable; it’s essential. Here’s why.

Protecting Your Interests:

A new build home contract is a complex legal document that outlines the terms and conditions of the transaction. While builders strive for transparency, their primary interest lies in protecting themselves. Having a lawyer review the contract ensures that your interests as a buyer are also safeguarded. They can identify any clauses that may be unfavorable or unclear and negotiate on your behalf to amend them.

Understanding the Legal Jargon:

Contracts are often laden with legal jargon that can be challenging for the average person to decipher. A lawyer practicing in real estate can translate this language into plain English, ensuring that you fully understand your rights and obligations under the contract. This comprehension is vital for making informed decisions about your investment and avoiding potential pitfalls down the line.

Ensuring Financial Security:

Buying a new build home is a significant financial investment, and the contract dictates the financial terms of the transaction. A lawyer can review the payment schedule, financing requirements, and penalties for default to ensure that you are well informed. 

Negotiating Terms:

While builders typically establish fixed terms within the agreement, there are instances where certain elements can still be subject to negotiation. For instance, negotiating the deposit structure, assignment clause, or arrangements for renting during occupancy are areas where flexibility may exist. Having a lawyer who can advocate on your behalf and provide insights into potential modifications to the agreement can prove highly advantageous.


In the excitement of purchasing a new build home in Ontario, it’s easy to overlook the importance of legal review. However, neglecting this crucial step can leave you vulnerable to potential risks and liabilities. By enlisting the expertise of a qualified real estate lawyer, you can ensure that your interests are protected, understand the terms of the contract, and navigate the transaction with confidence. Investing in legal review upfront can save you time, money, and stress in the long run, making it an indispensable step in the home buying process.

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