Mark_Mal
New Member
Hello all,
This is the email my lawyer sent me RE: Compensation for Delay:
In general terms the builder can extend the occupancy date as many times as they want from the “First Tentative Occupancy Date” (30 November 2010) so long as they don’t extend it beyond the “Outside Occupancy Date” (“OOD”) which would be stated in the Tarion Addendum attached to the Agreement of Purchase and Sale (“APS”). Unfortunately we don’t have a copy of that addendum. As you entered the APS in June 2007, it is likely the OOD has now passed or is close, which is perhaps why there is a buzz about compensation.
If the suite is not complete by the OOD you can terminate your agreement on giving 30 days notice to the builder. You are not obliged to terminate the Agreement it is just one of the options available to you. You can also extend the OOD by mutual agreement if you would prefer and you may already have agreed that with the builder.
Where the builder is in breach of providing occupancy when they should, compensation is payable up to a maximum of $5,000.00 for living expenses and other direct costs. The normal process for obtaining compensation is to apply directly to the builder AFTER, and no later than 180 days after, you have completed occupancy. If they do not pay you would then apply to Tarion. Proof of expenses such as receipts/invoices, will substantiate any compensation claim you make.
Whether the builder will approach purchasers before occupancy to discuss compensation is unknown. Builder’s don’t tend to voluntarily offer money back to purchasers so it may be they have indicated they are open to compensation claims as they are aware of the delays at this development. That being said, it is always possible the builder will attempt to pre-empt any compensation claims beforehand to agree the amounts now.
Without knowing the exact OOD it is difficult to advise 100% that you will be eligible for compensation but given the time lines involved from when you entered in to the agreement, it is likely you would be eligible for some compensation. Please note ccompensation is NOT payable for delays due to matters outside the builder’s control such as strikes or floods.
If you make a claim to your builder, be sure to provide all receipts and other supporting documents for direct costs incurred as a result of the delay. Keep copies of your receipts and other documents as these will be needed if you make a claim to Tarion.
This is the email my lawyer sent me RE: Compensation for Delay:
In general terms the builder can extend the occupancy date as many times as they want from the “First Tentative Occupancy Date” (30 November 2010) so long as they don’t extend it beyond the “Outside Occupancy Date” (“OOD”) which would be stated in the Tarion Addendum attached to the Agreement of Purchase and Sale (“APS”). Unfortunately we don’t have a copy of that addendum. As you entered the APS in June 2007, it is likely the OOD has now passed or is close, which is perhaps why there is a buzz about compensation.
If the suite is not complete by the OOD you can terminate your agreement on giving 30 days notice to the builder. You are not obliged to terminate the Agreement it is just one of the options available to you. You can also extend the OOD by mutual agreement if you would prefer and you may already have agreed that with the builder.
Where the builder is in breach of providing occupancy when they should, compensation is payable up to a maximum of $5,000.00 for living expenses and other direct costs. The normal process for obtaining compensation is to apply directly to the builder AFTER, and no later than 180 days after, you have completed occupancy. If they do not pay you would then apply to Tarion. Proof of expenses such as receipts/invoices, will substantiate any compensation claim you make.
Whether the builder will approach purchasers before occupancy to discuss compensation is unknown. Builder’s don’t tend to voluntarily offer money back to purchasers so it may be they have indicated they are open to compensation claims as they are aware of the delays at this development. That being said, it is always possible the builder will attempt to pre-empt any compensation claims beforehand to agree the amounts now.
Without knowing the exact OOD it is difficult to advise 100% that you will be eligible for compensation but given the time lines involved from when you entered in to the agreement, it is likely you would be eligible for some compensation. Please note ccompensation is NOT payable for delays due to matters outside the builder’s control such as strikes or floods.
If you make a claim to your builder, be sure to provide all receipts and other supporting documents for direct costs incurred as a result of the delay. Keep copies of your receipts and other documents as these will be needed if you make a claim to Tarion.
