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Delayed Occupancy Protection for Condominiums

The builder is permitted to extend the occupancy date of a purchaser's condominium unit if the purchaser receives proper written notice of the extension.

However, if the purchaser is not properly notified of a delay to the confirmed occupancy date, they are entitled to seek compensation under the terms of the Ontario New Home Warranties Plan Act.

Please note that a builder can delay occupancy of a new condominium unit for up to five days without giving notice or compensation. Also, compensation will not be paid for delays caused by events beyond the builder's control, such as strikes or floods, or for delays which the purchaser causes.
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 the purchase agreement gives a tentative occupancy date, the builder is required to inform the purchaser 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 the purchaser is not given notice of the confirmed occupancy date 90 days before the tentative occupancy date, then the tentative date automatically becomes the confirmed date for the purpose of calculating compensation for the delay.

Once the confirmed occupancy date is established, the builder is allowed to extend it once by up to 120 days. In this situation, the builder must give the purchaser at least 65 days written notice. The builder can also extend the date by up to 15 days if they give the purchaser at least 35 days written notice.

The builder is permitted to use both of these extensions as long as they give you the required notices and the total of the two extensions does not exceed 135 days.
Do purchasers have to agree to an earlier occupancy date?

The builder may offer the purchaser occupancy of the unit earlier than the confirmed occupancy date, but the builder cannot require that the purchaser accept it. The builder must obtain the purchaser's consent in writing to an earlier date.
When can a purchaser claim compensation?

Once the purchaser gets occupancy of the unit (prior to the closing of the transaction) they may be able to claim compensation for delayed occupancy.
Making a Claim for Delayed Occupany
  • Purchasers who have not received proper notice of a delay, or where the delay exceeds the maximum permitted, should contact their builder and use best efforts to resolve the delayed occupancy claim directly with them.
  • If the builder fails to resolve the delayed occupancy claim, the purchaser should request a Delayed Occupancy package by calling 1-877-9TARION.
  • If the purchaser submits a Delayed Occupancy Form, they may be able to claim up to $100 per day in living expenses (such as temporary accommodation costs), plus other direct costs caused by the delay (such as extra moving and storage costs - receipts are required for these costs), up to a maximum of $5,000.
  • If the purchaser submits a Delayed Occupany Form without supporting receipts or other proof of expenses, the amount they may be able to claim per day depends on their date of possession. Homeowners with a date of possession of May 1, 2004 to December 31, 2004 may claim up to $60 per day for living expenses; homeowners with a date of possession of January 1, 2005 to December 31, 2005 may claim up to $80 per day for living expenses; and homeowners with a date of possession on or after January 1, 2006 may claim up to $100 per day for living expenses. In all cases, the maximum amount that can be claimed for living expenses and other direct costs caused by the delay (such as extra moving and storage costs - and receipts are required for these costs) remains at $5,000.


IMPORTANT

The homeowner must submit the delayed occupancy claim according to the service rules that are described in the Delayed Closing / Occupancy Form package and in the Delayed Closing/Delayed Occupancy section of the Homeowner Information Package.

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