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Delayed Occupancy Warranty for Condominiums
For purchase agreements signed on or before June 30, 2008
Image: Delayed Occupancy

Your builder is permitted to extend the occupancy date of your condominium unit if you receive proper written notice of the extension.

However, if you are not properly notified of a delay to your confirmed occupancy date, you 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, 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 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, your builder is allowed to extend it once by up to 120 days. In this situation, your builder must give you at least 65 days written notice. They can also extend the date by up to 15 days if they give you at least 35 days written notice.

Your 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 I have to agree to an earlier occupancy date?

Your builder may offer you occupancy of your unit earlier than the confirmed occupancy date, but they cannot require that you accept it. They must obtain your consent in writing to an earlier date.

When can a purchaser claim compensation?

Once the purchaser gets occupancy of the unit (prior to closing of the transaction), they may be able to claim for compensation for delayed occupancy.

Making a Claim for Delayed Occupancy
  • 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 their builder.
  • If the builder fails to resolve the delayed occupancy claim, the purchaser should request a Delayed Occupancy Form package by contacting Tarion
  • 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 - and receipts are required for these costs), up to a maximum of $5,000.
  • If the purchaser submits a Delayed Occupancy 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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