If you don’t want to end up couch-surfing for months, know your rights when it comes to condo closing dates. Here, some tips to ensure you don’t get ripped off.
1. Be Skeptical
Salespeople make big promises, but nothing they say is binding. “Don’t hang your hat on the informal conversation you had with the salesperson,” says veteran real estate lawyer Domenic Tudino.
2. Read Closely
Some developers’ MO is to get buyers to sign the agreement of purchase and sale before they can review it closely. “Confusion is a developer’s weapon,” says Tudino. And don’t forget about your 10-day “cooling off” period.
3. Remember Tarion
Tarion Warranty Corporation helps protect Ontario homebuyers. Page one of the Tarion Addendum – which builders must attach to the purchase agreement – outlines critical dates, including the projected completion date (‘the firm occupancy date’) and the final day for permitted extensions (‘the outside occupancy date’).
4. Cash In
If your builder misses the firm occupancy date, you’re entitled to compensation of up to $7,500, including $150/day for living expenses and additional relevant expenses (storage costs, etc.). You can appeal to Tarion if your builder refuses to pay up.
5. Pull Out
If the builder doesn’t have your home ready by the outside occupancy date, you can terminate the agreement and receive a full refund – plus interest.
6. Lawyer Up
If you were promised a view of the lake and instead got a wall, demand a fix – or offer a cash settlement. Tarion covers unauthorized substitutions, but for this – and really, for everything, to be sure – you’ll want to find a lawyer.
Image courtesy of AshtonPal.
Great article, thank you! Is it really true that if they don’t have your place done, they can just give you your money back (plus a bit of interest)? Then it would be in their interest not to finish for you, because they could go ahead and sell it for way more to someone once it’s completed. That’s evil.