Part II of a 'Get Ready to Wait!'
Tarion, the provincial agency that provides consumer protection for new home buyers, revised the rules governing condo delays last summer. As of July 1, any project that started sales on or after that date is covered.Frankly, the challenge for a lay person is just understanding those new rules. While the Tarion protections are now appended to all sales and purchase contracts, usually to the front page, the darn thing is so long and complicated it might as well be written in Sanskrit for the average buyer.
“You really do need a lawyer to go through it and explain it,” Mr. Leclair says. “It is vital to know what your rights are and the best time to do that is within the 10-day rescission period right after signing the deal.”
In essence, occupancy becomes a moving target from the time you sign until the roof of the project is completed. Developers can change move-in dates as many times as they want with 90 days notice until the roof slab or trusses and sheathing are in place.
After that, the developer has 30 days to set firm occupancy and can change that date only once again with 90 days notice. That final occupancy date cannot be more than 120 days from the one given when the roof was completed.
What happens if the project is not ready for occupancy once that final, final date is set? The developer has to start paying you $150 a day to a maximum of $7,500 for every day of delay.
“In effect, buying a new condo means being prepared for what may prove to be a very long and drawn-out process,” Mr. Margulies says. “If you get in at the early stages when prices are best, then you are looking at anywhere from 30 months to five years before move-in.”
And if your project gets pulled, the cycle starts all over again if you choose to try another development.
The length of waiting time and uncertainty involved in buying a condo today may suggest buyers focus on projects that already have financing and a construction permit.
“If you opt for a project closer to construction or in construction, you may pay more but you will be much more certain of being able to take occupancy within a more reasonable period of time,” Mr. Margulies says.
