![\"properties](\"https:\/\/www.canadianrealestatemagazine.ca\/wp-content\/uploads\/2021\/03\/Depositphotos_157430244_L.jpg\" "\\"-\\"")
<\/p>\nA substantial number of developments in the GTA delivered late are on the hook for millions of dollars in late closing compensation\u2014but purchasers, unaware that they\u2019re entitled to up to $7,500, are leaving it on the table.<\/p>\n
Builders provide occupancy dates and have 90 days to notify purchasers of delays, and while anything short of that contravenes the Consumer Protection Act, they can delay as much as they want provided the 90-day rule is satisfied. Although most common in Toronto\u2019s condominium market, this applies to any preconstruction development in Ontario.<\/p>\n
\u201cIf they don\u2019t give you 90 days, you enter into the automatic firm date. The builder can deliver the property sometime later, but you, as the consumer, are entitled to $150 a day for every day without a receipt,\u201d said , a consultant with Delayedclosing.com and a real estate investor. \u201cInvestors can take advantage of this.\u201d<\/p>\n
There is a catch, though: consumers must apply within one year and not a day later. A builder aware of their blunder will delay the building\u2019s registration until just after the 365-day expiry period. Fortunately, says Purdy, a lot of builders are just as ignorant about this as consumers, especially that they can\u2019t miss the firm date even if they provide 90-day notices.<\/p>\n
Builders are afforded some grace in the form of unavoidable delays. For example, if the building burns down and it isn\u2019t the builder\u2019s fault, they can claim an .<\/p>\n
Purdy says about a third of new construction properties built in Ontario every year have legitimate claims for reimbursement, but most people don\u2019t take advantage of them and, as a result, builders dodge a lot of bullets.<\/p>\n
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\u201cThe first reason they don\u2019t claim is they have absolutely no idea this exists, and if people do know it exists, they have already thrown out all the letters, so they no longer have all evidence and nobody bothers to tell them there\u2019s a timeline to claim,\u201d said Purdy. \u201cBuilders manipulate things a little bit, too. If they know they have a building full of eligible claims, they hold off registration until after the year has passed.\u201d<\/p>\n
Of the reasons claimants are eligible in the first place, Purdy says it\u2019s usually because builders haven\u2019t given 90-day notices. Another common reason is because the builder thought they had legitimately unavoidable delays only to subsequently find out they didn\u2019t.<\/p>\n
\u201cIt\u2019s not an unavoidable delay if your kitchen manufacturer goes out of business. If your appliances can\u2019t show up on time because nobody\u2019s making stoves anymore, that\u2019s not an unavoidable delay.\u201d<\/p>\n
Purdy specializes in taking builders to task for delayed closing compensation, and claims a 98% success rate.<\/p>\n
\u201cWe just found a building in downtown Toronto with 558 units and everyone\u2019s entitled,\u201d said Purdy. \u201cThe cost to the builder is just over $4.5 million if everyone applies. But if I were to go down to the building and give out flyers or something like that, only 10-20% would apply because most people just don\u2019t believe it\u2019s possible.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
A substantial number of developments in the GTA delivered late are on the hook for millions of dollars in late closing compensation\u2014but purchasers, unaware that they\u2019re entitled to up to $7,500, are leaving it on the table. Builders provide occupancy dates and have 90 days to notify purchasers of delays, and while anything short of […]<\/p>\n","protected":false},"author":6,"featured_media":27353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9016"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=9016"}],"version-history":[{"count":4,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9016\/revisions"}],"predecessor-version":[{"id":28651,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9016\/revisions\/28651"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/27353"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=9016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=9016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=9016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}