549 – Can You Walk Away from a Pre-Construction Deal? What You Need to Know

549 – Can You Walk Away from a Pre-Construction Deal? What You Need to Know

Author: Doug Hoyes March 8, 2025 Duration: 30:29

Alarming trend: Canadians are finding themselves unable to follow through on pre-con real estate purchases. So, what happens if you can't close on a pre-construction real estate deal?

In this episode, the co-founders of Hoyes Michalos break down the reality of pre-construction deals in Canada, including assignment sales, how rising rates and blanket appraisals impact your deal, and what happens if you can't secure financing. They also explore the legal and financial consequences of "walking away" and whether solutions like a consumer proposal or bankruptcy might apply to your situation.

Walking Away From a Pre-Con Deal with Consumer Proposal

What To Do When You Can't Close

The Real Problem with Pre-Con Deals by Doug Hoyes LinkedIn


(0:00) – What is a pre-construction deal in real estate?
(3:30) – What is an assignment sale?
(5:15) – Trends in Canadian pre-construction real estate deals
(8:00) – "Blanket appraisals" and why they matter
(11:45) – The financial and legal consequences of "walking away"
(13:00) – Timing issues and pre-con purchases
(14:00) – What happens if interest rates go up or down before your closing date?
(17:00) – When builders run into problems — how it affects you
(20:00) – Practical steps if you can't close on your pre-construction home
(22:00) – Can a consumer proposal help you walk away from a pre-con deal?
(26:00) – Are you at risk of being sued by the builder?
(28:00) – Bankruptcy: when it becomes an option for pre-construction buyers


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Disclaimer:
The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 500

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