Category: Selling your Condo

Due to the pandemic and rising costs, pre-construction projects are facing delays or cancellations. Here’s what buyers can do to protect themselves. First, check your Tarion Critical Days. For pre-construction condos, there should be a Tentative Occupancy Form or a Firm Occupancy Form. The developer can change the tentative occupancy dates as long as they provide advanced notices that meet Tarion’s requirements. The Firm Occupancy date should be the final delivery date for the property. If possession cannot be completed by this date, buyers can request delayed occupancy compensation of up to $7,500 per unit. The Outside Occupancy Date is the final deadline for possession. If the unit cannot be occupied, buyers can terminate the transaction within the next 30 days with fully refunded deposits, interest, and delayed occupancy compensation. Keep in mind that some delays may be unavoidable, and not all delays will be compensated. Second, bring your Agreement of Purchase and Sale (APS) to your lawyer for legal advice. Clauses that may cause delays should be reviewed to protect your interests and avoid confusion. Your lawyer should also ensure that the developer complies with the APS and Tarion rules.