Pre-construction resort real estate works differently than buying a resale home, and most of the confusion we hear from buyers comes down to timing, deposits, and what you're actually entitled to before the building is finished. Here's what to know before you sign.
What does "pre-construction" mean at a resort property?
It means you're purchasing a suite or unit before the building is complete, based on floor plans, renderings, and a price list rather than a finished space you can walk through. In exchange for buying earlier, resort developers typically offer incentives that resale properties can't match, things like rental guarantees, furniture packages, and capped fees. The trade-off is a longer runway between signing and actually using the property.
How is this different from buying resale?
With resale, you close on a fixed date and move in shortly after, on a property you've already seen in person. With pre-construction, you sign an Agreement of Purchase and Sale years before occupancy, pay your deposit in stages, and the finished product is built out over that time. Resale is faster and more certain. Pre-construction usually comes with stronger incentives and the ability to buy in before pricing moves.
What does a typical deposit structure look like?
Deposits are staged rather than paid all at once. A common structure starts with an initial deposit on signing, followed by additional installments at set intervals, ninety days, six months, and so on, building up to a percentage of the purchase price by the time the building is ready for occupancy. The exact structure varies by project, and several resort developments currently offer extended deposit structures that spread payments out further than a typical downtown condo would.
What's the difference between occupancy and closing?
Occupancy is when you can move in and start using the unit, while closing is when the transaction is legally finalized and the title transfers to you. In a condominium structure, there's often a gap between the two, sometimes called interim occupancy, during which you occupy the unit and pay occupancy fees before the building registers and your final closing happens. Some resort developments also include the right to lease your unit during interim occupancy, which lets you start generating rental income before your closing date.
Is my deposit protected?
Yes, new home and condominium deposits in Ontario are protected under the Condominium Act and Tarion's new home warranty program, and the specific rules have been changing through 2026 as part of a broader regulatory update. Because the coverage limits and registration requirements are actively in transition, this is one area where we always recommend confirming the current details with your real estate lawyer before you sign, rather than relying on a number that may already be out of date.
Can I sell my unit before it closes?
In some cases, yes. This is called an assignment, and it means selling your Agreement of Purchase and Sale to another buyer before the building registers. Several current resort developments include free assignment as part of their incentive package, which removes a fee that can otherwise run into the thousands of dollars. Assignment terms vary by project, so it's worth confirming what's included before you buy if flexibility matters to you.
Are development charges and closing costs capped?
Many resort pre-construction projects cap development charges at a fixed dollar amount rather than leaving them open ended, which protects buyers from surprise increases as a project moves through approvals. Other closing costs, like legal fees, land transfer tax, and Tarion enrollment, are separate and worth reviewing with your lawyer as part of your offer.
Who do I need on my team when buying pre-construction?
At minimum, a real estate lawyer who specializes in pre-construction and new home purchases, and a mortgage broker who understands extended deposit structures and can help you plan financing around a closing date that's still years away. We work closely with both on every resort transaction and can make an introduction as part of the process.
Where in Ontario can I currently buy resort pre-construction?
Right now, active pre-construction resort residences include Horseshoe Residences at Horseshoe Valley Resort in Oro-Medonte and new suite releases at Muskoka Bay Resort in Gravenhurst. Each has its own incentive package, price list, and timeline, and we can walk you through current availability at either.
Have a specific project in mind, or still deciding which resort fits your lifestyle? Reach out and we'll walk you through what's currently available.