Toronto’s housing market is growing with each day. There are so many condominium developments coming up in the city, and several promising real estate developers are building luxurious units. Buying as well as selling a condo is an exciting experience for both the investors and the homebuyers. However, there are quite a few intricate and essential factors associated with it.
One of the critical factors related to condos in Toronto is ‘Delayed Occupancy.’ It plays a significant role in the Toronto housing market. This blog will make you familiar with everything that you need to know about it.
What Is The Meaning Of The Term ‘Delayed Occupancy’?
Construction and building activities are tedious and time-consuming. Even though these things are looked into beforehand, there are chances that there might be delays. That is, you might not be able to get your completed condo suite by the time it was promised to you. This is called delayed occupancy.
The purchase agreement that you make when you buy a unit should contain specific occupancy dates. These dates are critical and hence, should be properly mentioned in your agreement.
What are the important dates to consider for delayed occupancy?
For delayed occupancy, there should be mention of the two types of dates, namely, outside occupancy date and firm occupancy date.
Outside occupancy date is the latest date that your builder expects that it would be able to provide you the condo unit for occupancy.
On the other hand, the firm occupancy date is the date committed or promised by the developer for condo occupancy.
Circumstances for an unavoidable delay
There could be some rare occurrences like fire, strike, etc. that could halt the construction for a specific period. In such situations, an unavoidable delayed occupancy occurs. In situations like these, it is the responsibility of the builder to inform about the delay. Proper notice should be provided to you. If possible, there should also be an estimate of the delay in occupancy that you are going to suffer.
Delayed occupancy coverage
Tarion warranty has a clause for the inclusion of delayed occupancy coverage. This clause implies that in case the developer does not provide you with the occupancy of the condominium by either of the two important dates, the one that falls earlier, you are eligible to receive delayed occupancy compensation.
How to claim it?
In case you are entitled to receive the delayed occupancy coverage as per your purchase agreement and Tarion, there are certain things to keep in mind.
You have the allowance to claim it from your builder and Tarion within a year after you get the occupancy or after your purchase agreement is terminated.
Therefore, it is essential to maintain copies of all your receipts as well as supporting documents. You must attach all the required documents as well as receipts. That is, these should all the costs that you had to incur due to the delay of your occupancy. You can also claim a specific amount for covering the living expenses that are counted for each day.
Fixed compensation amount
The specific amount as compensation is $150 per day. This includes the basic living expenses that are accommodation as well as meals. This is counted for each day beyond the critical dates mentioned in your purchase agreement.
Additionally, you can also claim any extra charges that you had to incur because of the delay in occupancy. You are entitled to claim the delayed occupancy coverage for ten days before the Firm Occupancy Date. That is an additional amount of $1500 as coverage. You could claim this if your builder did not send you a notice informing about the delayed occupancy.
As per the Tarion Addendum, the maximum amount that you can receive as delayed occupancy coverage is $7500. Look into all the considerations that are there under the Tarion Warranty Program closely to understand things better. Also, you can seek help from an expert if you still have any concerns regarding the compensation clauses.
Terminating the purchase agreement of the condo
As per the Tarion Addendum, there is a Purchaser’s Termination Period as well. The start date of this period is also specified in the Addendum. This is of 30 days. In this period, you have the allowance to terminate your purchase transaction in case of delayed occupancy.
If you wish to opt for this, you are entitled to the entire delayed occupancy coverage, as well as a complete refund of the amount that you have spent on the condo purchase. That is, you get a refund for your deposits, upgrades, and other extra charges as well. Also, you get an interest in it too. There is a maximum amount specified for it; you get the money back up to this maximum amount.
Keep track of the rules
It is vital to keep yourself updated about the rules and regulations of the Tarion Warranty Program. If it is going to be a resale condo that you are buying, you will have a specific occupancy date, which, in most cases, will be met.
However, in the case of new condo developments, the chances of uncertainties occurring are more. Therefore, make sure that your purchase agreement mentions these details properly.
Also, even if you are into investing in real estate for long, you need to be vigilant about the rules. This is because the rules have modifications every year.
A smart condominium purchase would be when you look into these factors properly and make a wise choice. Delayed occupancy coverage can be availed if you are entitled to it. Also, there are a lot of other things that you can claim apart from basic living expenses.
If you wish to do that, seek expert advice so as to benefit from the Tarion Addendum. Toronto housing market is developing, and newer projects are coming up in almost every part of the city. Therefore, look into all the specifics and decide for the final purchase after understanding each intricate detail. Remember, purchasing a condo in Toronto is expensive. Thus, every decision that you make regarding it should be carefully thought over.
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