Here you are. You’ve purchased a new build condo – one where construction has yet to be finished. Congratulations, you jammy devil.
As it’s not yet (fully) built, and while you have been provided with an estimated date of possession, you can’t know for sure when you’ll be able to move in.
It’s all still a little up-in-the-air, which can make life… difficult to plan.
You’ll notice that several dates are outlined in the Statement of Critical Dates – Delayed Occupancy Warranty, found in the Tarion addendum (which is attached to the Builder’s agreement). Typically, these dates are:
First Tentative Occupancy Date
Final Tentative Occupancy Date
Firm Occupancy Date
Outside Occupancy Date
So… when can you move in? Confused? Let’s break these down.
The First & Final Tentative Occupancy dates:
These will outline the earliest-to-latest range of dates that a buyer will be able to move into their brand-new place. This range is usually agreed to ahead of time between the buyer and builder.
If there are delays in construction, the builder is obligated to provide the buyer with advanced warning (as much as 90 days written notice) that they will be pushing back the occupancy date (by as many as 120 days). This describes the Final Tentative Occupancy Date.
The Firm & Outside Occupancy dates:
If there are further delays after a Firm Occupancy Date has been set, and the builder extends and delays occupancy, they may owe compensation to the buyer. Your real estate salesperson should refer their buyer to their real estate lawyer for more information.
The Outside Occupancy date is the latest date a builder agrees to provide occupancy (typically agreed to ahead of time by both the buyer and builder). Broadly speaking, if the unit is still not ready by this date, and both parties do not agree to extend further, the buyer will have the right to terminate the purchase agreement (during a 30-day window called the Purchaser’s Termination Period).
As always, should a (potential) buyer have any questions about the critical dates relating to occupancy of a new build and their options should a critical date change, they ought to be directed to their real estate lawyer and to Tarion (www.tarion.com) for further information.
Be in constant contact with your builder to stay up-to-date on when your unit is expected to be fully constructed and ready for you to move into.