Short answer: if you are buying a new home from a builder in Ontario and the HST rebates matter to your budget, the agreement of purchase and sale is where you win or lose them. The date it shows, how it handles amendments and assignments, and what it says about rebates credited on closing decide who carries the risk. Have it reviewed before you sign, not after.
Ontario’s enhanced HST rebate on new homes has a deadline of March 31, 2027, and the CRA ties it to when the agreement with the builder is entered into. The tax rules themselves, including who is eligible and how much is available, are set out by the CRA. For those, speak with your accountant. This post is about the contract.
The date on the agreement
Builders’ agreements often have several dates: when you signed the offer, when the builder signed it back, when a cooling-off or financing condition expired, and when any amendment was made. Make sure the agreement clearly shows the date it was entered into, and keep a copy of the fully signed version with every page initialled. If that date is ever questioned, the document is your evidence.
Amendments, extensions and re-signed deals
New-build deals change. Closing dates move, upgrades get added, units get swapped. Before you agree to any change, ask whether it is an amendment to the existing agreement or a new agreement, and what that does to the date the deal is treated as made. The same question applies if a builder offers to cancel an older agreement and sign a fresh one. Get the answer in writing, and have your lawyer and accountant look at it before you sign the amendment.
Buying or selling on assignment
An assignment involves two contracts: the original agreement with the builder and the assignment agreement. Both matter. If you are buying on assignment, ask for the original agreement and every amendment, check the builder’s consent and the assignment fee, and confirm what the assignment agreement says about HST and rebates. If you are selling on assignment, read your agreement’s assignment clause before you list.
Rebates credited on closing
Most builder agreements price the home “HST included, net of rebates assigned to the builder.” That means the builder credits rebates to you on closing and claims them itself. It also usually means the agreement makes you repay the builder, with interest or fees, if a rebate is later denied. Read that clause closely:
- Which rebates does the price assume you are entitled to?
- What happens to the price if you turn out not to be?
- When, and how quickly, would you have to pay the builder back?
- What declarations will you sign on closing about your eligibility and how you will use the home?
Those closing declarations are signed statements. Don’t sign one you haven’t read or can’t stand behind.
Questions to ask before you sign
Your builder
- What date will the agreement show as the date it was entered into?
- Is the price HST-included and net of rebates? Which ones?
- Will you credit the rebates on closing, or do I deal with them myself?
- What do I owe you if a credited rebate is later denied, and when?
- Do you allow assignments, and on what terms?
Your accountant
- Which rebates apply to me, and what do I need to show to claim them?
Your lawyer
- What do the HST, rebate and assignment clauses actually say, and who carries the risk?
- Will an amendment, extension or assignment change the date the deal is treated as made?
- What will I be signing on closing, and what am I declaring?
Have your new-build agreement reviewed
Barbarian Law® reviews agreements of purchase and sale for new builds and assignments: the dates, the HST and rebate clauses, the assignment terms, and what you would owe the builder if a rebate is denied. You get a written estimate before any work begins.
Frequently asked questions
About the contract, not the tax rules. For eligibility and amounts, see the CRA or your accountant.
Should I have a new-build agreement reviewed before I sign it?
Yes. Builder agreements are long, written by the builder’s lawyers, and often have a short cooling-off period for condominiums and none for freehold homes. A review before signing is when you can still ask for changes.
What does “HST included, net of rebates” mean in a builder agreement?
Usually that the price assumes certain rebates are assigned to the builder, who credits them to you on closing. The agreement normally makes you repay the builder if a rebate is later denied, so read that clause before you sign.
Can an amendment change the date my agreement is treated as made?
It can matter. Before you agree to an amendment, extension or replacement agreement, ask your lawyer and accountant how it affects the date the deal is treated as made.
What should I check when buying a new home on assignment?
Get the original agreement with the builder and every amendment, confirm the builder’s consent and any assignment fee, and check what the assignment agreement says about HST and rebates.
General information only, current as of October 2026. It is not legal or tax advice. For tax questions, including rebate eligibility and amounts, speak with your accountant or see the CRA. For your agreement, speak with a lawyer.
