Pre-Construction Disputes

Buying new construction means signing years before the home exists. When the builder delays or cancels, the project changes, or the purchaser can no longer close, the purchase agreement, the Tarion addendum and, for condominiums, the Condominium Act all come into play. We act for purchasers and builders in these disputes.

Common situations

Delayed closing or occupancy, and compensation for delay
Project cancellation and the return of deposits
Changes to the unit or the project after signing
Interim occupancy fees in a new condominium
Assignment of the purchase agreement
A purchaser who cannot close, and the builder’s claim for damages
Deficiencies discovered after closing

Rules that often matter

Delay. The Tarion addendum sets out delayed closing and occupancy rules, and in some cases compensation.
Warranties. New homes carry statutory warranties administered by Tarion, with different periods for different kinds of defects.
Condominium purchases. The Condominium Act provides a cooling-off period after signing, requires deposits to be protected, and requires disclosure of material changes, which can give the purchaser a right to end the agreement.
Interim occupancy. Fees paid before the condominium is registered are generally not credited to the price.

What happens next

Review the agreement, the Tarion addendum, the disclosure statement and every amendment and notice.
Map the timeline, including outside dates and the delay notices the builder sent.
Measure what is at stake, such as deposits, carrying costs and price changes since signing.
Choose the route, whether negotiation, a Tarion claim, a court proceeding, or a combination.

Questions we are often asked

Can a builder cancel a pre-construction agreement?

Only in the circumstances allowed by the agreement and the applicable rules, such as unmet early conditions or an outside date that passes. Where a builder cancels, the purchaser is generally entitled to the deposits back with any interest required by law, and may have other claims depending on the facts.

What if the builder delays the closing?

The Tarion addendum to the agreement sets out how delays must be handled, and in some cases provides for compensation. The agreement and the notices the builder sent determine what applies.

What are interim occupancy fees?

In a new condominium, a purchaser may move in before the building is registered and pay a monthly fee during that period. The fee is generally not credited toward the purchase price.

Should I make a claim through Tarion or go to court?

Warranty problems with the home generally go through Tarion's process. Claims about the contract, deposits or misrepresentation usually go to court. Some disputes involve both.

General information about Ontario law, not legal advice about your situation. Time limits can be short; if you are unsure, speak with a lawyer promptly.

Pre-Construction Disputes

Common situations

Rules that often matter

What happens next

Questions we are often asked

Guides and scenarios

Speak with us about your situation.