Homeowner Information Package
SEARCH THE HIP
If you signed your purchase agreement before June 30, 2008, click here to read about Delayed Closing protection.
Under the delayed closing warranty, your builder guarantees that your freehold home will be ready for you to move in either by a Closing Date specified in the purchase agreement or by a date that has been properly extended if circumstances occur that delay the home’s completion. In many cases, your builder will be required to compensate you if a delay occurs beyond certain permitted delays.
If you are unsure about your rights regarding delayed closing compensation, you may wish to seek the advice of a lawyer.
If you are entitled to delayed closing compensation, you may make a claim to your builder and Tarion within one year after taking possession, or after termination of the purchase agreement.
Keep copies of your receipts and other supporting documents, although receipts relating to living expenses are not required.
Be sure to attach copies of all receipts and other supporting documents for costs incurred as a result of the Closing delay, other than for living expenses for which a set per day amount can be claimed without receipts.
Information Included in the Addendum
Your builder is required to attach a special supplement to your purchase agreement called a Tarion Addendum. The Addendum, among other things, indicates when your builder expects to finish your home, states the latest dates permitted for extensions and Closing, and includes all fees and charges that may be added to the purchase price of your home.
When you sign your purchase agreement, your builder must complete and attach this Addendum, which is provided by Tarion and includes a Statement of Critical Dates as its first page that summarizes these key dates. It must be signed by both you and your builder.
In rare circumstances (for example, in the event of a strike or a fire), a Closing Date may be unavoidably delayed. In such cases, your builder must inform you at the outset of the delay (including an estimate of how long the delay is expected to last) and must provide written notice as soon as the delay has ended. More detail about unavoidable delays is available here.
Termination of the Purchase Agreement
The Addendum also specifies a date on which the Purchaser’s Termination Period begins. This is a period of 30 days during which you have the right to terminate the transaction if closing has not occurred. Should this occur, you are entitled to Delayed Closing Compensation and a full refund of all monies paid (i.e., deposits, extras, upgrades) plus interest, up to the maximum amount.
Eligibility for Delayed Closing Compensation
Delayed Closing Compensation is payable if:
- Closing occurs on a date after your home’s Firm Closing Date.
- Closing is delayed beyond the Outside Closing Date, and you exercised your right to
terminate the purchase agreement during the Purchaser’s Termination Period described in your Addendum. Compensation includes a fixed amount of $150 a day for living expenses (meals and accommodation) for each day of delay until the Delayed Closing Date or the date of termination of the purchase agreement, plus other costs incurred by you as a result of the delay (such as additional moving and storage costs). Delayed closing compensation is payable from 10 days before the Firm Closing Date (i.e., an additional $1,500 (10 days x $150) if your builder fails to give you at least 10 days notice of a Closing delay). The maximum amount of delayed closing compensation payable to you is $7,500 in accordance with the Addendum.