Closing adjustments on a new build: caps are everything
Doorvia Guides · August 9, 2026
Development charges, levies, utility connections and meter fees are charged to you at closing unless they are capped.
New construction agreements pass a list of costs to the buyer at final closing: increases in municipal development charges, education levies, park levies, utility and meter connection fees, Tarion enrolment, law society and registration charges, and sometimes the cost of the builder's own legal fees.
Left uncapped, these adjustments can add many thousands of dollars to your closing. Capping them is the single most valuable negotiation available in a pre-construction purchase.
Ask for a specific dollar cap on development and education levies, and for a total cap on adjustments if possible. Have your lawyer confirm the wording covers increases as well as base amounts, and get the cap in the agreement, not in an email.
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