The Ontario New Home
Warranties Plan Act specifies that if a builder requires additional time for
construction, they may extend your closing date, without paying compensation,
under the following circumstances:
Major Delay (of more than 15 days)
Your builder must
notify you in writing at least 65 days prior to the original closing date in
your purchase agreement in order to delay your closing up to a maximum of 120
days. As part of this notification, the builder must also set a new closing
date which will be referred to as the “extended” closing date.
Minor Delay (of 15 days or less)
Your builder must
notify in writing at least 35 days prior to the original or extended closing
date in your purchase agreement in order to delay your closing up to 15 days.
The builder must also set a new closing date at that time. However, if there
has already been a major delay, the combined delay cannot exceed 120 days.
A builder can delay
possession of a new freehold home for up to five days without giving notice or
compensation. Also, please note there is no compensation for delays caused by
events beyond the builder's control, such as strikes or floods, or delays which
you cause.
by Ryan Carson