Markham issued more than 1,200 condominium occupancy permits in 2024, with the bulk concentrated along Highway 7 and the Yonge corridor. For purchasers signing pre-construction agreements with developers operating in the city — Times Group, Liberty Development and Greenpark among them — the agreement of purchase and sale runs 80 to 130 pages. The legal review usually arrives too late.
Under the Condominium Act, every pre-construction purchaser in Ontario receives a ten-day rescission period after signing or after delivery of the disclosure statement, whichever is later. The right is absolute. A buyer who walks away within ten days recovers the full deposit and owes the developer nothing. Outside that window, exit becomes expensive.
What the Ten-Day Cooling Period Actually Buys
Most buyers misunderstand the rescission window. It is not a negotiation period. It is a review period. The agreement does not change inside those ten days unless the developer voluntarily amends it, and developers rarely do. The window exists for the buyer to identify clauses worth walking away from.
A Markham real estate lawyer reviewing a pre-construction agreement typically focuses on three areas: assignment provisions, adjustment language, and occupancy terms. Each can cost the buyer tens of thousands of dollars at closing if it goes unchallenged.
Interim Occupancy and the Phantom Mortgage
Markham tower projects almost always involve interim occupancy. The buyer takes possession of the unit, pays an occupancy fee to the developer, and waits — sometimes 18 months — for the building to register as a condominium corporation. Until registration, the buyer does not hold title and cannot register a mortgage.
The occupancy fee combines three components: interest on the unpaid balance at a rate set by the federal government, an estimated common expense charge, and an estimated property tax amount. None of it builds equity. The Real Estate Council of Ontario has flagged interim occupancy fees as one of the most misunderstood costs in the new condominium market.
Buyers who plan to hold the unit may absorb the fees as a known cost. Buyers who intended to assign before closing often discover that lender approval, developer consent and HST rebate eligibility all complicate the exit.
The HST Rebate: A $24,000 Exposure
The federal-provincial new housing rebate on a residential condominium can reach approximately $24,000 in Ontario. The rebate is structured for purchasers who occupy the unit as a principal residence or who lease it for at least one year on a residential basis. The numbers are not optional. The Canada Revenue Agency has audited assignment buyers in the GTA aggressively since 2022, and the agency now treats certain assignment chains as taxable supplies.
Investors who buy and immediately list for short-term rental do not qualify for the rebate. The developer typically credits the rebate against the purchase price on the closing statement. If the buyer does not meet the eligibility test, the rebate must be repaid — sometimes years later, with interest.
Adjustments at Closing: Where the Surprises Live
The statement of adjustments on a Markham pre-construction closing routinely runs 15 to 25 line items. Education levies, development charges, utility hook-up fees, Tarion enrolment, meter installation and discharge of construction liens are all standard pass-throughs. Without a cap negotiated into the original agreement, development charges and education levies have exceeded $30,000 on individual GTA closings since 2023.
The Tarion-mandated Statement of Critical Dates governs delays in occupancy and final closing, but it does not cap adjustments. A real estate lawyer reviewing the agreement during the rescission period flags uncapped charges before the buyer is committed.
Tarion Coverage and the New Home Warranty
Every new condominium in Ontario must enroll with Tarion, the regulator administering the Ontario New Home Warranties Plan Act. Coverage runs in tiers: deposit protection up to specified limits during construction, one-year warranty on workmanship, two years on major systems, and seven years on major structural defects. The buyer cannot waive Tarion coverage. The lawyer confirms enrolment, reviews the Pre-Delivery Inspection package, and ensures the warranty registration survives the closing.
Working With a Markham Real Estate Lawyer
Mayo Law represents pre-construction purchasers across Markham, including projects on the Highway 7 corridor, in Cathedraltown, in Berczy Village and within the Cornell community. The firm reviews agreements during the rescission window, manages interim occupancy and final closings, registers charges on title at registration, and handles HST rebate filings where eligibility is contested.
A pre-construction purchase moves through three legal stages: rescission review, interim occupancy and final closing. Buyers who engage a Markham real estate lawyer at signing, rather than at closing, retain the option to walk away. Buyers who wait until the developer issues the closing package have already accepted every clause in the agreement.
