For Purchase Agreements for Freehold Homes
Every builder of a new freehold home in Ontario must provide the delayed closing warranty to buyers at the time the purchase agreement is signed. Through this warranty your builder is guaranteeing that your home will be completed by a mutually agreed upon Closing Date, or by a Closing Date that has been properly extended.
Details about the delayed closing warranty are provided in the Tarion Addendum attached to your purchase agreement. If you are unsure about your rights regarding closing delays you may wish to seek the advice of a lawyer.
Your builder has the option of providing one of two types of Closing Dates:
Firm Closing Date – Typically used when your builder is confident the home can be completed by a specified date. If the date is not met, (with certain exceptions) your builder is required to provide Delayed Closing compensation.
Tentative Closing Date – Typically used when your builder is less able to determine a precise date that the home can be completed. For example, if construction has not yet started, or if there are unpredictable obstacles which could slow completion. This option allows your builder to extend the Closing Date twice, by up to 120 days each time, without paying compensation.