You’ve been eagerly waiting throughout the construction period for your brand new condominium building, and now your move-in date it only months away. You’re all set to go. But what happens if you’re told the condo project is delayed?
How long it takes to complete a condo varies from project to project, but construction delays can affect any building. Here’s what you need to know about delays.
Delayed occupancy warranty
Only three provinces in Canada make warranty coverage mandatory for new builds. Luckily, Ontario is one of them. In Ontario, new condo-owners are protected from closing delays by the Tarion Warranty Corp. Condominium builders must be covered by Tarion, which should be offered to buyers at the time the purchase agreement is signed.
The warranty sets out a schedule of critical dates by which the builder must have either completed the condo or made sure that the closing was property extended, with adequate notice given. Your builder has the right to delay the move in date multiple times without paying compensation to you, however, you must be given 90 days notice of each extension.
For any Agreement of Purchase & Sale dated July 1st, 2008 or later, the builder must do two things:
1) Set out a specific closing date
2) Determine which type of date that is
Your builder has the option of providing one of two types of occupancy dates:
Firm Occupancy Date: When the builder of your condo is confident that your unit will be completed by a specific date they will set a firm occupancy date for you at the time of signing. If the date is not met, then your builder is required to provide delayed occupancy compensation.
Tentative Occupancy Date: This is the kind of date that is usually laid out when you sign for a pre-construction condo. Since construction hasn’t yet begun, it’s often difficult for an exact date to be detailed because many outside factors can come into play. However, if your condominium unit is not complete by the latest date agreed upon by you and the head of construction you are entitled to delayed occupancy compensations.
Delayed Occupancy Compensation
So, you can’t move into your condominium when you had planned. For some people, especially those who planned on moving in themselves, this can be a considerable inconvenience. In some cases, you’ll be compensated for the inconvenience?
By Ontario regulations, if there is an improper delay for closing, then you may claim up to $7,500 in delayed occupancy compensation. An improper delay means that your builder did not properly notify you, or surpassed the latest date they confirmed.
If you find yourself faced with a delayed move-in date, be sure to read through your signed agreement to see what guidelines were initially set out. If you feel you don’t fully understand, be sure to contact a lawyer to help you figure out what you are entitled to.