Unlike resale transactions, there is no standard form of agreement of purchase and sale when buying a new home. Each builder creates its own contract, although the similarities are greater than the differences.

Most builders also have their own sales staff, however information the builder's sales representative relays to you may not be binding.

When builders subdivide large parcels of land, municipalities require them to enter into various subdivision agreements that set out the conditions that will run with the land from owner to owner. Builders must disclose all of the covenants and restrictions in all agreements of purchase and sale. These are normally attached as schedules to the agreement. The schedules will cover everything from the type of trees you can plant to future bus routes.

You must also consider any additional costs that may be set out in the agreement. The agreements of most builders will require the buyer to pay the builder's lawyer to prepare the deed at a cost of approximately $125. Depending on where you live there may be charges for utility connections, such as water, hydro, and natural gas.

A buyer may want to add various features to the home, which can be paid for when added or at the time of closing. However, if for some reason the transaction doesn't close you should understand that extras, unlike the deposit, may not be refunded.

Most builders agreements will include assurances to complete certain matters (if necessary) after the deal closes. These are known as undertakings and can include such things as landscaping, paving driveways, finishing work, discharging a builder's mortgage, and the final occupancy permit which is issued by the municipality.

The number of days between signing an agreement and actually getting the keys can be weeks or months. New home builders rely on many outside sources that are often beyond their control. Building permits must be obtained before construction can start and often delays are encountered at the municipal level. There may be difficulties in obtaining materials or with the trades people who install them.

The most important date is the day of closing. Under contract law, failure to deliver the house on time means the deal comes to an end. The buyer can walk away, but then so can the builder. The Ontario New Home Warranty Plan Act provides strict guidelines pertaining to changes in closing dates.

Read the agreement. I recommend that you have your lawyer review the provisions and explain any clauses you may not understand.