Agreement of Purchase and Sale signed prior to July 1, 2009
If a freehold home is
delayed beyond five days without the builder providing proper written notice to
the purchaser, or if the delay is beyond 120 days for any reason, the homeowner
may be entitled to compensation.
If the homeowner
submits a Delayed Closing Form together with all receipts, he/she may be able
to claim up to $100 per day in living expenses (such as temporary accommodation
costs), plus other direct costs caused by the delay (such as extra moving and
storage costs), up to a maximum of $5,000.
Without supporting
receipts or other proof of expenses, the maximum amount a homeowner may claim
per day for living expenses depends on the date of possession of their new
home.
Homeowners with a date
of possession of May 1, 2004 to December 31, 2004 may claim up to $60 per day
for living expenses; homeowners with a date of possession of January 1, 2005 to
December 31, 2005 may claim up to $80 per day for living expenses; and
homeowners with a date of possession on or after January 1, 2006 may claim up
to $100 per day for living expenses.
In all cases, the
maximum amount that can be claimed for living expenses and other direct costs
caused by the delay (such as extra moving and storage costs) remains at $5,000.
Homeowners who choose the "no receipts" option are advised to keep a
copy of any relevant receipts they may have or any other proof of claim as
these may be required to support a claim.
by Ryan Carson