Closing on a Pre-Construction Home in Richmond Hill: PDI, Walk-Throughs, and the Costs to Expect

The day you signed that purchase agreement, your closing date felt like it was years away. Then construction schedules shift, and suddenly it's real: your Richmond Hill pre-construction home is nearly finished. The final stretch has its own process — the pre-delivery inspection, possibly interim occupancy, and a set of closing costs many buyers don't see coming. Here's what to expect so nothing catches you off guard.

1. The pre-delivery inspection (PDI)

About a week or two before your closing or occupancy date, the builder will schedule a pre-delivery inspection — a walk-through of your unit with a builder representative. This is your chance to document anything that isn't finished or isn't right: paint issues, scratched floors, a cabinet door that won't close, appliances that don't work.

Take this seriously. Bring the agreement of purchase and sale, a checklist, and a phone camera. Everything you spot gets noted on the builder's PDI form, which is also filed with Tarion, Ontario's new-home warranty administrator. The builder is responsible for fixing the deficiencies you list. Buyers who rush the PDI often end up chasing repairs for months after moving in.

2. Interim occupancy (condos): living there before you own it

If you bought a condo, you may take possession under interim occupancy — you move in and pay the builder a monthly occupancy fee while the rest of the building is finished. During this period you don't yet own the unit and aren't paying a mortgage; the fee roughly covers the interest the builder carries on your unit, plus property taxes and condo fees.

Interim occupancy can last a few months or considerably longer. Your mortgage funding needs to be ready for the final closing, when ownership transfers and the occupancy fees stop. Talk to your lender well ahead of time so there are no surprises when the building finally registers.

3. Closing costs beyond the purchase price

Resale buyers are told to budget for closing costs, and pre-construction buyers should too — the list is just different. Depending on your agreement, expect some combination of land transfer tax, legal fees, title insurance, Tarion enrollment fees, and municipal development charges or levies.

Two things matter here. First, ask your real estate lawyer for a written closing-costs estimate 60 to 90 days before closing so you can plan, not scramble. Second, some agreements cap the development charges the builder can pass on to you — know whether yours does, and what happens if the cap is exceeded.

4. Get your lawyer involved early

Don't wait until the last week to find a real estate lawyer. An experienced lawyer will review your agreement, confirm the closing-costs picture, arrange title insurance, and flag anything in the builder's documents that needs your attention. Builders use their own paperwork and their own timelines; having someone on your side who has closed hundreds of these transactions is worth every dollar.

5. The final walk-through and the 30-day form

After you move in, do a thorough review of everything the PDI listed and anything new you've noticed. Tarion's 30-day form is your formal channel for reporting deficiencies the builder hasn't fixed. Filing it on time keeps the warranty process on your side — miss the deadline and your options narrow.

Pre-construction closings involve builders, lawyers, lenders, and Tarion, all on their own timelines. Having a broker who has guided clients through this process before makes the final stretch far smoother. If you're approaching closing on a Richmond Hill or York Region pre-construction home, reach out to M2Team at 647-989-2641 — I'll make sure you walk in prepared.