If a purchaser chooses to claim the living expenses portion of his/her delayed closing/occupancy claim without receipts or other supporting documentation, and Tarion determines that the claim is valid, the builder may contest the amount of living expenses claimed without receipts by requesting a re-assessment of the claim within 30 days after Tarion issues the Warranty Assessment Report.
Tarion will charge the builder an upfront non-refundable fee of $350 to re-assess the amount of living expenses claimed without receipts.
If the builder chooses to request a re-assessment, the burden of proving that the purchaser incurred lower costs, and that the difference between costs claimed and costs incurred is material (i.e. at least 25% lower than the claim amount), will rest on the builder. The builder must provide Tarion, when filing the request for re-assessment, with evidence that the purchaser incurred materially lower living expenses and/or evidence of any direct benefit received by the purchaser.
Based on the evidence submitted by both the purchaser and the builder, Tarion will re-issue a report, which may be further contested by the builder at the Builder Arbitration Forum.
Note that If the builder chooses not to request a re-assessment, the portion of the report dealing with living expenses will be considered accurate and final, and may not be contested by the builder at the Builder Arbitration Forum.
For details on the re-assessment of a delayed closing/occupancy claim, please consult Revised Builder Bulletin 25.