Pre-construction condo purchases offer investors and homebuyers unique advantages, such as price appreciation before occupancy, modern layouts and extended timelines for financing, but they also come with risks and a different negotiation process compared to resale properties. In Canada’s highly active condo markets, particularly in cities like Toronto, Vancouver, Montreal, Calgary and smaller urban centres undergoing densification, effective negotiation can impact not just the price but also deposit structures, upgrades and protections. While many buyers assume pricing and terms are non-negotiable, there is often more flexibility than developers advertise, especially in slower markets or phases nearing sellout.Understanding the Pre-Construction Sales ProcessUnlike resale transactions, where buyers negotiate directly with sellers, pre-construction purchases are made from developers, usually with fixed price lists, marketing incentives and specific contract terms. These sales are governed by provincial legislation: Ontario’s Condominium Act, British Columbia’s Real Estate Development Marketing Act (REDMA), Alberta’s Condominium Property Act, and equivalents in other provinces. These frameworks require disclosures, cooling-off periods, and protections for deposits held in trust. Buyers typically sign an Agreement of Purchase and Sale (APS) during a project’s early phase. At this stage, the base price and standard terms are presented as fixed, but many aspects may still be negotiable.Reviewing and Amending the Purchase AgreementThe APS contains important details about the unit, construction timelines, delay provisions, interim occupancy, final closing and costs. Buyers should always have a full review of the APS conducted by a real estate lawyer with experience in pre-construction transactions. Lawyers can flag potential issues such as uncapped levies, excessive assignment fees or one-sided cancellation clauses.Buyers may also attempt to amend or add clauses during the negotiation phase. Common areas of negotiation include: Capping closing adjustments, which can otherwise include unpredictable fees;Reducing assignment fees; andIn some provinces, the right to rent the unit prior to final closing, if the developer permits occupancy before title transfer. Where interim or early occupancy is allowed, such rental rights are not guaranteed and often require explicit developer consent. While not all developers will accept changes, some will, especially if the project is nearing its sales target or the buyer is purchasing multiple units.Pricing Flexibility and IncentivesDevelopers may adjust prices over time as construction milestones are met. In slower markets or during launch periods, buyers may negotiate price reductions, particularly if they are purchasing multiple units or working with a seasoned real estate agent familiar with the developer’s track record.More commonly, developers offer non-price incentives instead of direct discounts. These may include waived or capped development levies, free parking or locker units, upgraded appliances or finishes, or a year of free maintenance fees. These incentives can be strategically negotiated to offset costs that would otherwise add significantly to the final price.Deposit Structures and Payment FlexibilityDeposit structures are among the most negotiable aspects of pre-construction purchases. Buyers facing liquidity constraints may be able to negotiate a slower payment schedule or a reduced total deposit, particularly in markets with high inventory or when the project is nearing completion.Investors may sometimes be able to negotiate back-loaded deposits, such as 5% immediately and 10% at occupancy, or extended timelines, such as 1% per month over 15 months. First-time buyers may also qualify for more lenient terms. Having a real estate agent who regularly works with pre-construction projects is critical in identifying which developers are open to such flexibility.Assignments and Rental or Resale RestrictionsAnother area for negotiation is the right to assign the unit before closing, which is a valuable option for investors who may want to sell the contract before occupancy. Developers often restrict assignments to control resale activity and pricing, and typically charge fees to allow them. Buyers can negotiate to include assignment rights at a reduced or waived fee and to ensure they can assign at market value without restrictions.Some developers now include clauses restricting short-term rentals or assignments to corporate entities. These terms can affect investment viability and should be addressed early.Closing Costs and Final AdjustmentsFinal closing costs are often underestimated by pre-construction buyers. They include land transfer taxes, legal fees and ’adjustments’ such as meter installations, levies and Tarion warranty enrollment. While these are detailed in the Disclosure Statement and APS, the amounts can be vague or uncapped. Negotiating a cap on closing adjustments can prevent unexpected financial strain.The Role of RepresentationNegotiating a pre-construction condo purchase requires an understanding of the legal framework and other areas with the greatest financial impact. Working with professionals who can advocate for the buyer is critical. Legal counsel is important. Pre-construction agreements are lengthy, developer-drafted contracts that favour the builder. A lawyer can ensure the buyer’s interests are protected and that any negotiated changes are clearly documented before the rescission period ends.Using a real estate professional with experience in the pre-construction market and strong relationships with developers can make a significant difference in negotiation outcomes. Some have access to ‘insider’ or VIP pricing and are more likely to be aware of developer incentives not advertised publicly. Additionally, developers may be more open to concessions when approached through trusted professionals who can bring repeat buyers or referrals. When looking at a pre-construction property as an investment opportunity, the right real estate professional becomes even more essential. RLP InvestorsEdge™ connects investors with highly trained professionals who know how to negotiate on their behalf for better deals and discounts, while protecting their interests. These professionals can secure more favourable terms for buyers while mitigating common risks inherent to off-plan purchases.