Most builder agreements enable the builder to delay the closing date under certain circumstances. However, new home buyers have protection afforded by the Ontario New Home Warranty Act against delays:
New Home Warranty Protection Against Delays:
A builder must notify you at least 65 days before the original closing date if they want to extend the closing date by more than 15 days.
A builder must notify you at least 35 days before the original closing date if they want to extend the closing date by 15 days or less.
A builder has an additional grace period of 5 days in which to extend the closing date without notice or penalty.
Compensation for Additional Delays
If the builder does not comply with these requirements and there is additional delay, you can claim compensation from the builder at $100.00 per day for up to $5,000.00 in out-of-pocket expenses. In order to be compensated, you must close the transaction and submit your claim within one year to the Ontario New Home Warranty Program together with all your receipts. However, you likely will not be compensated if the delay is caused by something beyond the builder’s control (e.g. fire, strike, act of God, etc.)
Protect Yourself
To help protect yourself even more, you should always make alternative arrangements for accommodations and to store your household contents rather than relying on the availability of your new home. It is also helpful to monitor construction so that you are not caught off guard by any significant delays. Keep in touch with the builder and site staff.
