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Old 2008-06-09, 09:59 PM
mikefc mikefc is offline
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Default Delays and compensation

My friend just bought a house and he has already had his closing delayed 3 months from the original date. Now he just recently received a letter stating that his home construction would be delayed again and the delay would be more than 240 days from his original closing date.

I told him about the threads I've read here advising to consult your lawyer before signing these documents extending the date, but he also mentioned that the package he received with an amendments also stated that if he didn't sign the amendment, his agreement would be terminated.

I'm just curious if this is possible or accurate? How can his builder just cancel the agreement to avoid paying compensation? As he's told me he is really upset about the delay but does love the house and the area and doesn't want to cancel his purchase agreement. Has anyone run into this before? It sounds a littel fishy to me. Thanks for any advice I can pass on and for my own curiousity!
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Old 2008-06-09, 10:31 PM
Mark & Lynda Mark & Lynda is offline
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Delayed closings guidelines are set out by Tarion. See this page...

http://www.tarion.com/HOME/New+Home+...eholdHomes.htm

Here are some points that may interest you:

Major Delay (of more than 15 days)
Your builder must notify you in writing at least 65 days prior to the original closing date in your purchase agreement in order to delay your closing up to a maximum of 120 days. As part of this notification, the builder must also set a new closing date which will be referred to as the “extended” closing date.

Termination:
If the closing date in your purchase agreement is delayed beyond a total of 120 days, you have the right to terminate the purchase agreement between day 121 and day 130. For example, if your original closing date is January 1, 2004, it can be extended until April 30, 2004. If the purchase is not completed by then, you would have from May 1 to May 10, 2004 to terminate the agreement.

Please note, if you sign an agreement to amend or change your closing date, this may affect your right to compensation and you may face fresh delays as described on this page.

My opinion: If your friend purchased over 6mths to 1year ago then sign the amendment. The builders basically have you by the short and curlies and would love nothing more than the purchaser to terminate the agreement so they can re-sell the home for more money. As a buyer, you're left with no choice but to purchase at todays higher prices.
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Last edited by Mark & Lynda; 2008-06-09 at 10:36 PM.
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Old 2008-06-09, 10:51 PM
mikefc mikefc is offline
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That's exactly the part I didn't understand. They don't have to compensate anyone if the agreements are signed. And if the deals are terminated, then they just resell the homes for more money. Kind of defeats the purpose of having delayed closing protection because he either has to make alternate accomodation arrangements for a few months, or go buy another new house which is now more expensive for an equivalent home. That's terrible.
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Old 2008-06-09, 11:03 PM
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Sure they sell them for more money.. but remember that even though there is nothing on the land, it still costs money. The land cost money their investor pool money who are now losing interest on that invested money. They also have to pay property taxes on that land. They also have to install services on the land and that is NOT cheap.

So yes, they'll turn around and sell it for more money, to cover the costs and maybe make some extra on it.


Regarding your predicament, contact your lawyer.
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Old 2008-06-10, 06:14 AM
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Nanners Nanners is offline
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We were delayed 240+ days. Our choice was to resign a new agreement with a new "closing date" OR terminate the agreement. Sucks I know.
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Old 2008-06-10, 06:44 PM
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TMA28 TMA28 is offline
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Quote:
Originally Posted by Nanners View Post
We were delayed 240+ days. Our choice was to resign a new agreement with a new "closing date" OR terminate the agreement. Sucks I know.
Sorry to hear that! I was in a similar situation with Mattamy...I eventually terminated the agreement. Let us know what you decide to do...good luck!

Is there a reason for the delay?
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Old 2008-06-10, 07:17 PM
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Sorry to hear that! I was in a similar situation with Mattamy...I eventually terminated the agreement. Let us know what you decide to do...good luck!

Is there a reason for the delay?
You were delayed as well? In Fairwinds?

At first I was furious and wanted nothing to do with Mattamy. They said the delays were because of land serviving. We looked at other builders and resale homes but in the end, we traded in our townhome for a single family home. We loved the location and as season ticket holders, the location is great to walk to the games.
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Old 2008-06-11, 10:25 AM
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Originally Posted by Nanners View Post
You were delayed as well? In Fairwinds?

At first I was furious and wanted nothing to do with Mattamy. They said the delays were because of land serviving. We looked at other builders and resale homes but in the end, we traded in our townhome for a single family home. We loved the location and as season ticket holders, the location is great to walk to the games.

I was in Barrhaven Mews...initially. It wasn'y the delay that bugged me the most...it was everything else that led up to the delay for me. I am a big believer in consistancy. I would ask the same question to the same person each week and I would get a different answer each week. And the same can be said when I asked the same question to another individual with Mattamy. I eventually got out of the agreement and went searching else where. Its too bad that it didn't work out with Mattamy. They have great prices but it ends there with me. I know lots of people that have and are enjoying their homes but I also know some others that are hating the whole process!!!
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Last edited by TMA28; 2008-06-30 at 09:42 AM.
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Old 2008-06-11, 10:30 AM
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Originally Posted by TMA28 View Post
I was in Barrhaven Mews...initially. It was the delay that bugged me the most...it was everything else that led up to the delay for me. I am a big believer in consistancy. I would ask the same question to the same person each week and I would get a different answer each week. And the same can be said when I asked the same question to another individual with Mattamy. I eventually got out of the agreement and went searching else where. Its too bad that it didn't work out with Mattamy. They have great prices but it ends there with me. I know lots of people that have and are enjoying their homes but I also know some others that are hating the whole process!!!
Same thing happened to us but at Fairwinds. It's pretty bad when my calm husband gets irrate with the process and wants nothing to do with them. But then, it was the location we really wanted. I'm hoping the 2nd time around will be better. I'm not holding my breath though. At least this time, I don't have any big expectations so I'm thinking they can't really let me down unless they build us a sh**t house. I'm praying they don't.

Congrats on your Stonebridge purchase.
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