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Old 2017-01-18, 12:26 PM
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Casa Nuova Casa Nuova is offline
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Default Move-in delayed... but it seems strange

Hi there!

I am posting in the Ottawa-specific boards because I am not sure if there are different rules in different regions, but I was wondering if I could get some opinions / advice on a scenario my dear friend is in.

She purchased a freehold townhome, oh, maybe a year ago. She was to take ownership of it on January 27th.

On January the 10th, they went through the PDI walk-through. All good. It was noted that the last unit in the row wasn't completed.

They were just informed that they can no longer take ownership as planned.

They were informed by THEIR LAWYER! I thought these notifications had to come direct to the purchaser... if I recall, I think they were hand-delivered to us, and we had to sign off on them.

They weren't told WHY (perhaps the builder didn't sell enough units... don't know) but they are being told that they can RENT their unit, until such time that they are allowed to take ownership! But the rent does NOT go towards the mortgage!

Is this common? If I recall, both times I built new (including a townhome), we had to be given notice greater than 2 weeks in advance, didn't we? I can't recall the 'rules'. I am kind of in awe.

I don't know if it's relevant, but this is NOT a condo... however, as per my friend "we do have a common element which has a condo fee, our private streets". So freehold townhome owners paying condo-like fees? Is this normal too?

Opinions?
Thanks so much in advance!
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Old 2017-01-18, 12:45 PM
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Patrizia Patrizia is offline
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That is very odd. What does the agreement of purchase and sale state in terms of closing delays? From what I know, builders must provide advance notice of 90 days if there's going to be a closing delay.
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Old 2017-01-18, 12:52 PM
montreal montreal is offline
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Assuming that your friend is allowed to move into the home on January 27th (just not 'own' it yet) would suggest to me that either their is some form of condo condition within the property - meaning that they're taking interim occupancy of the home until which time that the condo can register formally (at which time they will then 'own' their home) OR there is some form of land swap agreement happening behind the scenes between your friends developer and another company (who owns the land that these homes are built on) and they will not have that transaction completed in time to legally transfer the title of the house and land it's on to your friends.

If it's the second one, then it's just poor planning by your friends developer..but it does happen.

Both these are just guesses though without knowing more of the situation, site etc.
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Old 2017-01-18, 01:01 PM
suezuki650 suezuki650 is offline
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I would suggest contacting Tarion to see what they say. The builder is supposed to give more notice of a delayed closing. It's still a delayed closing even if they are allowing occupancy as the deal was for purchase. Seems that something fishy is going on that the lawyer should be looking into as well.
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Old 2017-01-18, 01:05 PM
QueenD QueenD is offline
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Hello Casa Nuova,

Have you friend check her purchase of sale agreement. It has a date on there that indicates the last day that the builder can delay the closing date. If she has not received a notice of delay by that date, it firms up the closing date (in her case to Jan 27). My closing date is January 24, 2017 and they had until October 26, 2016 to notify me of any delays. So I'm assuming we are well pass that date.

Your friends needs to contact Tarion since the builder has to compensate the buyer for any delays pass the firm closing date. It is a daily fine, so she should get X amount of money for everyday the closing is delayed. It it very important for her to do so, depending on the builder, they might be trying to circumvent this important part of the purchase agreement.

As for the private street "condo fee" it's normal. For private street, the city is not responsible for some of the services it normally provides to public streets, such as: Snow removal, grass mowing and ticketing.
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