Buyer Education
April 22, 2026 · 7 min read
What is an APS contract? A guide for first-time pre-construction buyers in Ontario
An Agreement of Purchase and Sale (APS) is the binding contract between a buyer and a developer for a pre-construction unit. Here's what every first-time buyer should know.
An Agreement of Purchase and Sale, or APS, is the legal contract that binds a buyer and a developer in a pre-construction transaction. Unlike a resale offer, the APS in a pre-construction launch is signed long before the unit physically exists - sometimes 18 to 36 months before occupancy.
The APS does several things at once
It defines the unit (suite number, model, square footage, parking, locker), the price and deposit structure, the closing dates (interim occupancy and final closing), the warranties (Tarion in Ontario), and the standard features versus optional upgrades. It also governs what happens if the developer changes the building, delays the project, or defaults.
First-time buyers should pay attention to four things specifically. First, the deposit structure - typical Ontario APS deposits are staged across signing, 30/60/90/120 days, and occupancy. Second, capped development charges and education levies - without a cap, surprise costs at closing can run into the tens of thousands. Third, the assignment clause - whether and how you can sell your contract before closing. Fourth, the occupancy fee period - the so-called 'phantom rent' between interim occupancy and final closing.
Saleable's Automations product generates Ontario-compliant APS templates reviewed by real estate counsel and lets developers upload their own brokerage's template. Every signed APS is logged, e-signed, and exportable to comply with PIPEDA right-to-access requests.
Filed under Buyer Education · Published April 22, 2026
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