Who knows… well, it’s a little clearer than that but the short answer is that in most cases buyers should be ready for long timelines and possible delays.
Builders of new construction condominiums are required to include in their purchase agreements a “TARION Statement of Critical Dates”. This statement sets out the timelines that the builder must meet and the consequences if they fail to meet the timeline. The timeline set out in the Statement of Critical Dates is primarily concerned with making sure the buyer gets to occupy the unit within a reasonable and ascertainable time frame, even if the buyer does not yet own the unit. As such, it sets a “first tentative occupancy date” and an “outside occupancy date”. In other words, it sets a date that the builder expects is the earliest that the buyer might be able to occupy the unit by, and it sets an outside date which is the latest date by which the builder must provide occupancy to the buyer.
The builder is permitted to extend the occupancy date from the first tentative occupancy all the way until the outside occupancy date without any penalty, provided that they give the buyer enough notice of the delay. As a result, buyers should look at outside occupancy date and decide whether or not they are willing to wait that long to move into their unit before deciding to proceed with the purchase.
That said, even the outside occupancy date is not guaranteed since there are circumstances where are builder can extend the occupancy date beyond the outside occupancy date without penalty (e.g., unavoidable delays).
- December 6th, 2019
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