Module 3 Flashcards
After a buyer has signed a builder’s agreement, the builder is required to provide the buyer with
a disclosure statement
Builder disclosure agreement contains:
features, occupancy dates, management and contracts
A builder can extend the occupancy date for up to
120 days by setting a firm occupancy date
Compensation if the firm occupancy date is not met
$150 per day up to max of 7500
if a builder delays an occupancy date the buyer should review the
tarion addendum
accepting a change of move in date may result in a buyer waiving
their right to compensation
Increase of less than _% to the projected common ele does not
need to be disclosed to the buyer
Buyers are entitled to delayed occupancy compensation if
they cannot take occupancy by the firm or outside occupancy date (whichever is earlier)
Latest date a builder agrees to provide occupancy
outside occupancy date
If completion is outside of the outside occupancy date (latest date a builder agrees to provide occupancy) then
a 30 day pruchaser’s termination period begins
Deposit on the purchase of a new condo is protected by the
ON new home warranties plan (tarion) (up to max of $20k)
Delay in closing will give a compensation of up to
$7500 (if proper notice is not given)
Deposit trust agreement sets out
how the builder, escrow agent and tarion will hold the buyer’s deposit in trust
Escrow agent must receive all deposits within
15 business days after they’re received by the builder
HST rebate for pre-con condos
- Offsets HST costs related to construction
- rebate for a max of 30k if the unit is a principal res
HST rebate for investment properties
- Based on fair market value at completion when title is transferred
A buyer can cancel their agreement within 10 days of
signing a builders agreement or receiving a disclosure statement (whichever comes l8r)
Interim occupancy fee is based on
unpaid balance of purchase price, taxes, projected C.E fees
Private mortgages must be discharged
on or before closing
Discharge of a mortgage incorporated under a charter bank, trust company, credit union or insurance company occurs when
a lawyer undertakes to have it discharged after closing
Included in schedule A
balance due, conditions of the offer & any special provisions
condition subsequent starts with
the buyer may terminate this agreement in the event that
condition precedent starts with
the offer is conditional upon ….
