Delays
From BuildingHomes.ca
You have put down the deposit on your new house, you have signed all the paperwork, and included with that paperwork is a proposed closing date for when you get the keys to the front door.
A year has passed and you have been anxiously watching your house be built from the ground up, sneaking little peeks inside from time to time to make sure everything is where you want it to be.
And then it happens. Registered mail comes to your door from your builder. Inside you find a letter outling the delayed occupancy of your home.
What?! How can they delay your closing date? You have to be out of your current place by that time and you have already scheduled your friends to help you move that weekend?
In Ontario they can delay you. In fact, in my own observation I would say the majority of houses in Ontario are delayed. This can be due to any number of reasons. Trades unavailable, material shortages, weather problems, permit delays, inspection delays, municipal delays, money.
Remember, the longer a builder delays you means the longer it takes for the builder to get their money. They still have to pay for the people and materials who work on the house over the course of the construction.
According to Tarion a builder has to give you a minimum of 65 days notice prior to your original closing date. At this time they can delay you _up to_ 120 days from your original closing date.
Example: Your original closing date is June 8th. You receive a letter on April 2nd stating you will be delayed 120 days to October 8th. October 8th is now called your 'extended closing date'.
Keep in mind this is just an example and 120 days is the maximum. Now if things are really going wrong with the construction planning, the builder can do the same thing over again by sending you another notice 65 days prior to October 8th stating you will be delayed until the following year.
So what can you do? If your 'extended closing date' comes and goes and you have not completed the purchase of the house, you then have the option of terminating the purchase agreement. But you can only do this within TEN DAYS of that date. That means between days 121 and 130 you can terminate the agreement with the aid of your lawyer and get your full deposit back.
Reminder: Delaying the closing of your house in not in the builders best interest. They want to get paid for the construction and they don't until it closes.
For exact details on how all of this works, please consult Tarions webpage and your lawyer:
