When your moving date moves before you do

By Howard Bogach
June 21, 2019

You did all your research and decided that your next move will be into a new condominium. Whether this will be your first home or perhaps a retirement retreat, you’ve been counting down the days to your move.

Then your builder notifies you that your occupancy date is going to be delayed.

There could be many different reasons for it. Condo projects can take a long time to get going due to zoning approval processes and sometimes issues like material or labour shortages can delay construction schedules.

Pre-construction condos are sold long before shovels hit the ground – so this means, in most cases, your occupancy date could be two to three years in the future.Your Agreement of Purchase and Sale (or APS) sets out your occupancy date, which can be either a ‘firm’ or a ‘tentative’ date depending on how confident your builder is of the eventual date of completion. Your APS will also include an ‘outside occupancy date’ – an estimate of the latest possible date the project is expected to be completed.

Since a lot can happen between the time the units are sold and construction is finished, the odds are good that your builder will set a tentative occupancy date. This means they can delay the completion date for up to 120 days as long as they provide at least 90 days’ notice. Additional delays – with appropriate notice – are also possible.

Once a firm occupancy date has been set, if the condo isn’t ready on that date, you may be entitled to delayed occupancy compensation under the Ontario New Home Warranties Plan Act. Ontario is the only province that offers this compensation — $150 per day to a maximum of $7,500 — which is meant to cover things like the cost of rental accommodation or storage for your belongings. You don’t need to prove expenses to collect this compensation – it is a per diem rate for the duration of the delay. Usually, the builder pays this to you directly,but you can also make a delayed occupancy claim to Tarion after you move into your new condo.

Finally, if the outside occupancy date comes and goes and your unit still isn’t ready, you will have the right to cancel the purchase agreement.

The ‘critical dates’ you need to be aware of can be found in the Addendum, which is a document that must be attached to your APS. The Addendum not only details your occupancy dates but also when your builder is required to notify you if there’s going to be a delay and when you’re entitled to legally back out of your agreement if you choose to do so.

So, if your long-awaited condo requires more waiting than you had bargained for, it’s important to know your rights. To protect those rights, be sure to have a real estate lawyer who is well versed in condominium law review the APS and the Addendum before you sign. And if you have questions, visit Tarion.com.

Related reading

Everyone has the right to an accessible warranty

About Howard Bogach

Howard Bogach is president and CEO of Tarion Warranty Corp. His column appears monthly in New Home Guide. For more information about how Tarion helps new-home buyers, visit tarion.com or find us on Facebook at facebook.com/TarionWarrantyCorp.

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