4 things new homebuyers need to know about construction delays
(NC) When you buy a pre-construction house or condominium unit, you and your builder agree to a date by which you’ll be able to move in. For most homes, this date is referred to as the closing date. For others such as high-rise condominiums, it is known as the occupancy date.
Your closing or occupancy date may change for several reasons, including weather conditions during construction, the availability of tradespeople and materials, and financing.
Under Ontario’s new home warranty, your builder is allowed to extend your closing or occupancy date, provided they follow certain rules. The warranty also ensures that you are compensated if your builder does not provide enough advance notice or if they delay completion of your home beyond a certain date.
Construction delays can have a huge impact on your life. Here are four things you can do that will help to make the experience a lot less stressful:
- Review the Statement of Critical Dates in your purchase agreement. Understand what type of closing or occupancy date you have (fixed or tentative). If you have a tentative date, know when you need to be notified if there is going to be a delay.???
- Think before you sign a revised agreement with a new closing or occupancy date. If you sign an amendment or some kind of mutual agreement, you might waive your right to compensation under the warranty. Ask your lawyer for advice.
- Know what type of compensation you’re entitled to.?If you’re going to incur extra moving expenses and storage expenses on top of what you would have originally incurred?to move, hold onto your receipts.?
- Know how and when you can make your claim for compensation.?Approach your builder first.?If you need to make your claim to Tarion, register for MyHome, their online service for new homeowners, and complete the online Delayed Closing?or?Occupancy Form.