Looking for investment property? Make sure you know the nuances when signing agreement for pre-construction condo.
Delayed Occupancy: Builders can delay/extend occupancy dates for various reasons assuming 90 days’ notice is given. The Tarion Addendum (attached to the builder’s agreement) includes a Statement of Critical Dates.
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– Occupancy Date: This date is a projected date for occupancy. Important: More than one date can be included and the date can be extended with 90 days’ notice.
– Firm Occupancy Date: If the occupancy date isn’t met then an extension (up to 120 days) is established subject to the builder providing go days’ notice. If the firm occupancy date is not met, the buyer can obtain compensation (but not terminate).
– Outside Occupancy Date: This is the latest date for occupancy. If not met, the buyer has the right to terminate the agreement. Compensation can be received if the buyer terminates within the prescribed 30-day termination period.
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Compensation for delayed occupancy is up to $150 per day for living expenses and other costs (e.g., moving/storage expenses) up to a maximum of $7,500.