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 the closing date. For condominiums, it is the occupancy date.
For various reasons, this date may change. Delays in your closing or occupancy date can cost you in added accommodation, moving and storage costs. Your new home warranty’s delayed closing/occupancy coverage ensures that you are compensated if your builder does not provide sufficient advance notice of a delay or if the completion of your home is delayed beyond a certain date.
The Addendum to your Purchase Agreement
When signing the purchase agreement for your new house or condominium unit, remember to carefully read the Tarion Addendum attached to the agreement. The first page of the Addendum is a Statement of Critical Dates, which clearly indicates the date your builder expects to finish your home and the latest possible date for permitted extensions of that date.
To quickly and easily generate a Statement of Critical Dates, use Tarion's online Critical Dates Calculator.
Frequently Asked Questions
1. My builder asked me to sign an amendment to my purchase agreement. What should I do?
You should think twice before you sign a revised agreement with a new closing or occupancy date. If you sign an amendment or other agreement with your builder, you might waive your right to delay compensation under the warranty. Ask your lawyer for advice.
2. Can I cancel my agreement if I get delayed?
As a purchaser, you do have the right to do that. Your Statement of Critical Dates indicates an “Outside Closing/Occupancy Date.” If your home is not completed by that date, a 30-day Purchaser’s Termination Period is triggered during which you can terminate your agreement.
3. What kind of compensation can I get for a delay?
The compensation under the warranty is $150 per day to a maximum of $7,500.
4. What if my delay cost me more than $7,500?
$7,500 is the maximum delay compensation you’re entitled to under the warranty, so it’s the most that you can receive with Tarion’s help. This doesn’t prevent you from seeking additional compensation from your builder.
5. Who do I make my claim to for compensation?
Approach your builder first. Your builder provides the new home warranty to you, and is required to provide compensation for a delay if you are entitled to it. If your builder does not pay and you need to make a claim to Tarion, you can submit a Delayed Closing/Occupancy Claim Form to Tarion within one year of the date you take possession of your new home or occupancy of your condominium unit.
6. Do I need to provide receipts?
It depends on the type of expense. You are not required to provide receipts for living expenses, such as meals and accommodation. You will need to provide receipts if you are claiming expenses such as additional moving and storage costs. If you are unsure, contact Tarion for further assistance.
If you have any other questions, please send us an email at email@example.com.