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


Sign Up for the Debt Free Digest

FREE Credit Rebuilding Course

Debt Repayment Calculator

Debt To Income Ratio Calculator

Read the FULL JOE DEBTOR CONSUMER INSOLVENCY STUDY 2024

'Debtasized' Full Length Documentary – Free on YouTube HERE

Hoyes Michalos YouTube Channel

Hoyes Michalos Instagram

Hoyes Michalos Facebook

Hoyes Michalos TikTok

Hoyes Michalos Twitter (X)

Hoyes Michalos LinkedIn

Straight Talk on Your Money by Doug Hoyes

Find a Hoyes Michalos Office in Your Area Here

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: 100

Debt Free in 30
Podcast Episodes
524 – Entrepreneur by Necessity: Business Advice with David Barnett [not-audio_url] [/not-audio_url]

Duration: 34:11
Thinking about starting a side hustle or going out on your own? Whether you're a seasoned entrepreneur or a first-timer, this insightful episode with author and business expert David Barnett is packed with valuable advic…
522 – Hot Button Budgeting Topics (Compilation) [not-audio_url] [/not-audio_url]

Duration: 25:59
Pros and Cons of Budgeting: What Works, What Doesn't, and What to Do Instead | Debt Free in 30 | Episode 522 Is budgeting the best way to manage your finances, or is there a more practical approach? Debt Free in 30's Dou…
521 – Debt Collectors: Practical Advice (Compilation) [not-audio_url] [/not-audio_url]

Duration: 28:51
In this eye-opening episode of Debt Free in 30, host Doug Hoyes dives into the world of debt collection with Blair DeMarco of Kingston Data and Credit. Together, they unravel the complexities of debt collection and help…
520 – Expert Insights on Getting Out of Debt (Compilation) [not-audio_url] [/not-audio_url]

Duration: 36:05
Explore essential financial topics and practical advice to overcome debt and achieve financial stability. If you're struggling with high-interest debt, considering installment loans, or exploring mortgage refinancing, th…
519 – The REAL Way to Build Better Credit [not-audio_url] [/not-audio_url]

Duration: 32:05
Can You Improve Your Credit Score Without Debt? | Debt Free In 30 | Ep 381. If you're new to credit or have recently completed an insolvency filing, you may be thinking about ways to improve your credit score without tak…
518 – Why More Credit Won't Make You Truly Independent [not-audio_url] [/not-audio_url]

Duration: 20:58
Discover why chasing after more credit to achieve financial freedom may not be the most effective strategy, how it creates dependencies, and learn alternative paths to be more independent. Links: What To Do When You Have…
517 – Should you pay off your debt or invest? [not-audio_url] [/not-audio_url]

Duration: 29:45
You've got some extra cash. Should you pay down debt or invest it? In this episode, Doug and Ted discuss whether to use your extra money to tackle high-interest credit card debt, invest in an RRSP, or pay down a mortgage…
516 – Online Banking: Navigating Fees, Services, Apps and Benefits [not-audio_url] [/not-audio_url]

Duration: 33:14
Doug is joined by BIA Insolvency Counsellor Charlie Kovacs. They discuss banking in the digital age and cover topics such as service fees, chequing accounts, digital transactions, payment methods (digital vs. cheques), p…