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Can occupancy dates be delayed indefinitely? 

taly
taly
Posts: 2


Posted On: 10/28/2016
taly
taly
Posts: 2
As we arrived in Toronto, finding a permanent place to live was one of our first priorities.
We found a good a deal on price and location, but there was a catch. The occupancy date was not for another 2 months, as the building was still under construction.

We accepted that fact and found a temporary apartment.
It would be only 3 months, which was ok to wait.

We did ask at the time "what if construction is delayed", which was met with a "we'll put you on a temporary apartment managed by our company until construction is finally finished".
That was very encouraging, as it allowed us to plan and lease an apartment for only 3 months and then either be moving to the permanent one or, worst case scenario, move to another temp, arranged by the corporation managing construction.

Since then, the occupancy date has been rescheduled 3 times already, with the current estimate being about 5 months later than the original date agreed upon.
The "we'll take care of you promise" hasn't been honoured because notice of delay has been given 60 days in advance (which didn't help us much, as we still needed to prolong or month-by-month lease, which ends up being more expensive than a long term lease).

Per Ontario and Toronto regulations, can the occupancy date be pushed indefinitely with no penalty to the group managing the property?
Are really our only options to either wait or give up on the apartment?
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Posted On: 11/1/2016
Moderator
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Hello,

Thank you for sharing your situation and question with us.

We can appreciate that you would be concerned about this situation.

You can find some detailed information regarding Occupancy dates on the Tarion website in the Condominium Units - Tentative Occupancy Date section.

Here is an excerpt,

The first page of the Addendum to your purchase agreement is a Statement of Critical Dates which must be signed by both you and your builder. It clearly indicates when your builder expects to finish the home and the latest possible dates for permitted extensions.

It provides the following key dates:

The First Tentative Occupancy Date – The anticipated date that your condominium unit will be completed and ready for you to move in, as agreed upon by you and your builder. Your builder can set one or more Tentative Occupancy Dates.

Final Tentative Occupancy Date – If the current Tentative Occupancy Date cannot be met, a Final Tentative Occupancy Date must be set within 30 days of roof completion. If the Final Tentative Occupancy Date cannot be met, with 90 days written notice, the builder can extend the Occupancy Date one more time for up to 120 days by setting a Firm Occupancy Date.

Firm Occupancy Date – A date set by the builder with 90 days prior notice if an existing Tentative Occupancy Date cannot be met. This date may be set within 30 days of roof completion as an alternative to setting a Final Tentative Occupancy Date. The Firm Occupancy Date cannot occur after the outside Occupancy Date. Once a Firm Occupancy Date has been set, if your builder extends occupancy by setting a Delayed Occupancy Date, delayed occupancy compensation is payable to you.

The Outside Occupancy Date – This is the latest date that your builder agreed to provide you with occupancy of your condominium unit. You and your builder agree upon this date at the time of signing the purchase agreement.

Your builder may extend the Occupancy Date multiple times without paying compensation to you, however you must be given 90 days notice of each extension. Your builder must follow specific rules for setting a new occupancy date (More information is available on this topic below, under the heading: Rules for Setting a New Occupancy Date)



and



Rules for Setting a New Occupancy Date
As long as the Outside Occupancy Date is not exceeded, your builder can extend your Occupancy Date as described below without paying you delayed occupancy compensation.

To set a subsequent Tentative Occupancy Date you builder must give you written notice at least 90 days before the First Tentative Occupancy Date and choose a subsequent Tentative Occupancy Date or set a Firm Occupancy Date*.

If your builder extends the First Tentative Occupancy Date, but fails to give you a full 90 days written, then the First Tentative Occupancy Date becomes the Firm Occupancy Date. In addition, if your builder exercises the first extension properly, but fails to provide you with a full 90 days written notice of a subsequent extension, then the current Tentative Occupancy Date becomes the Firm Occupancy Date.

* The subsequent Tentative Occupancy Date can be any business day, provided it is prior to the Outside Occupancy Date.

Occupancy dates must not be “floating dates” dependent on some other event. They must be calendar dates or you may be entitled to terminate your purchase agreement.


You may want to contact Tarion at:

1-877-9-TARION (1-877-982-7466)
Mon-Fri 8 am-5 pm (EDT)

You may want to try and speak to the builder's representative to find out what your options are.

It is likely that you may have already had contact with a lawyer for the initial stages of your purchase. You may also want to contact your lawyer directly to see if they have any information or advice regarding what your rights are in this situation.

I hope this information is helpful. Please let us know if you have further questions and if there is any follow up to your question/situation.
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Anna
Settlement.Org Content and Information/Referral Specialist, CIRS
Settlement.Org
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taly
taly
Posts: 2


Posted On: 11/1/2016
taly
taly
Posts: 2
Hi Anna.

Thanks for the response.
If I understand correctly, though, those rules apply when purchasing an apartment. Would they hold true for renting as well?

Thanks and Regards,
Taly
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Posts: 4081


Posted On: 11/1/2016
Moderator
Moderator
Moderator
Posts: 4081
Hello,

Thank you for providing some additional clarification regarding your question.

In this case, it is best that you contact the nearest Community Legal Clinic directly for some information regarding what your rights are as a prospective tenant.


I hope this information is helpful. Please let us know if you have further questions and if there is any follow up to your question/situation.

=====
Anna
Settlement.Org Content and Information/Referral Specialist, CIRS
Settlement.Org
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