In the market and planning the purchase of a new freehold home or condominium in the next few months? If so, you will find the upcoming two-part blog posts of particular interest. I will highlight and discuss the expected pending changes to delayed closing and occupancy provisions of the Ontario New Home Warranties Plan Act.
In March of this year, Tarion Warranty Corporation (the Government approved private corporation responsible for administering the Ontario New Home Warranties Plan Act), announced a change effective July 1, 2008, to Ontario purchasers of new freehold homes or condominiums.
These changes to the Ontario New Home Warranties Plan Act and Regulations have stemmed from growing concerns and frustrations from the public and media over the lack of clarity and transparent disclosure facing Home Buyers.
Highlights of the changes include the need for:
According to Tarion (and assuming Government regulatory approval), Ontario consumers will benefit from enhanced delayed closing and occupancy warranty protection provisions as follows:
The changes to the warranty provisions will distinctly address Freehold and Condominiums separately, giving due regard to the fact these markets operate differently. On a broad level, purchasers of Freeholds will be given either a choice of a “Firm Closing Date” option or a “Tentative Closing Date” option. For purchasers of Condominiums, choices will include either a “Firm Occupancy Date” or a “Tentative Occupancy Date.”
Accordingly, in my next two blog posts, I will highlight details each option for new Freeholds and Condominiums along with overall changes to each Warranty and attempt to make some sense of it all.