Homeowner Information Package - Tarion

Homeowner Information Package
7
Delayed Occupancy
Compensation (This Section Applies
to Condominium Unit Buyers Only)
The Act specifies that your builder may delay
occupancy of your condominium unit for up
to five days without giving notice or paying
compensation. They may also delay occupancy
for up to 135 days with proper written notice as
described below without paying compensation.
If, however, the closing date of your new home
is delayed more than five days without proper
written notice, or more than 135 days in total
from the confirmed occupancy date specified
in your purchase agreement (either the original
confirmed occupancy date or a new date specified
in accordance with your purchase agreement), then
you may be entitled to compensation from your
builder up to a maximum of $5,000.
If you agree to extend your confirmed occupancy
date by way of an amendment to your purchase
agreement, you may not be eligible for
compensation. There is no compensation for delays
caused by strikes, fire, floods, civil insurrection or
“acts of God”. In addition, compensation is not
payable for delays for which you are responsible.
If you are unsure about your rights regarding
delayed occupancy, you may wish to seek the
advice of a lawyer.
What’s the difference between “confirmed”
and “tentative” occupancy dates?
Every purchase agreement for a condominium unit
will include either a confirmed occupancy date or
a tentative occupancy date. If a tentative occupancy
date is given, your builder is required to inform
you in writing of the confirmed occupancy date
no later than 30 days after the roof assembly is
completed (or another specific stage of construction
as specified in the purchase agreement). If you are
not given notice of the confirmed occupancy date
by at least 90 days before the tentative occupancy
date, then the tentative occupancy date will
automatically become the confirmed occupancy
date for the purpose of calculating compensation
for the delay.
What constitutes “proper notice” from
my builder about a delay in the occupancy
of my home?
Once the confirmed occupancy date is established,
your builder is allowed to extend it as follows:
Once by up to 15 days if they give you written
notice of the new confirmed occupancy date at
least 35 days in advance; or
Once by up to 120 days, if they give you written
notice of the new confirmed occupancy date at
least 65 days in advance. If that is insufficient,
your builder may further extend the date by
an additional 15 days, if they give you proper
written notice of the new confirmed occupancy
date at least 35 days in advance and if the final
new confirmed occupancy date is not more
than 135 days later than the original confirmed
occupancy date.