Can You Add Your Spouse to Title in Ontario?
Adding a spouse to title can be straightforward, but mortgage consent, land transfer tax and estate-planning consequences should be reviewed first.
What protection does Tarion provide for closing delays?
Ontario’s new-home warranty framework includes delayed closing protection for freehold homes and delayed occupancy protection for condominium units. The specific dates and rights are set out in the Tarion Addendum attached to the agreement of purchase and sale.
For a freehold home, Tarion explains that a builder who delays beyond the Firm Closing Date may owe compensation unless an exception applies. For a condominium, similar protection applies where occupancy is delayed beyond the Firm Occupancy Date.
How much compensation can a buyer receive?
Tarion’s current guidance states that delayed closing or occupancy compensation can be payable up to a maximum of $7,500. The framework includes a fixed amount of $150 per day for direct living expenses, such as accommodation and meals, during a qualifying delay.
Tarion also indicates that buyers may claim other costs caused by the delay, such as moving or storage expenses. Receipts are generally required for those additional expenses, even though receipts are not required for the fixed daily living-expense amount.
Buyer Practice Note
Keep every delay notice, amendment, moving invoice, storage receipt and temporary accommodation record. Even where a particular amount does not require receipts, a complete paper trail makes it much easier to assess a claim.
Does every delay trigger compensation?
No. The Addendum contains rules governing tentative dates, firm dates, mutual agreements and unavoidable delays. A builder may be permitted to extend dates without compensation where the delay falls within a recognized unavoidable-delay regime and the required notices are given.
Likewise, a purchaser who signs an amendment agreeing to a new date may affect rights that otherwise existed. Buyers should understand the amendment before signing, particularly where it contains release or waiver language.
What notice is normally required?
Tarion’s published consumer guidance notes that, as a general rule, at least 90 days’ written notice is required to change a closing or occupancy date. Delayed closing or occupancy compensation is capped at $7,500 in total. If the builder fails to provide at least 10 days’ notice of the delay, the compensation period is extended so that compensation is payable from 10 days before the Firm Closing or Occupancy Date. At $150 per day that represents $1,500 of compensation, but it counts toward the overall $7,500 maximum rather than being payable on top of it.
The exact effect of any notice depends on the applicable Addendum and the dates in the particular transaction.
What is an unavoidable delay?
Tarion describes unavoidable delays as extraordinary circumstances beyond the builder’s and purchaser’s control, such as certain strikes, fires, explosions, acts of God, civil insurrection, war, terrorism or a pandemic. The Addendum contains the operative rules and notice requirements.
What should buyers do when a delay notice arrives?
- Compare the new date to the Statement of Critical Dates.
- Identify whether the prior date was tentative or firm.
- Read the reason for the extension carefully.
- Do not sign an amendment simply because the builder says it is administrative.
- Preserve receipts and records for costs caused by the delay.
- Get legal advice where the delay affects termination rights, compensation or financing.
Why this matters beyond Tarion compensation
A delayed closing can also affect mortgage commitments, rate holds, leases, moving contracts and the sale of an existing home. The legal warranty claim is only one part of the buyer’s risk. Buyers should coordinate with their lawyer, lender or broker and Realtor as soon as a material delay is announced.
For Realtors & Mortgage Professionals
When a client receives a new-build delay notice, encourage them to send the notice and the original Tarion Addendum to their lawyer immediately. The character of the date and wording of any amendment can matter significantly.
