Toronto’s 1 Bloor Project: The Complexities Of Delayed Closings And Occupancies
May 25th, 2009 Categories: Condo Marketplace, News Wire
My recent post about Toronto’s 1 Bloor condo project has generated quite a bit of traffic. This makes me happy because: 1. it’s always nice to know that people are interested in the topics you’re writing about, and 2. the search terms people use to reach my site are great indicators about the information people want. Read: future articles.
In the case of my 1 Bloor post, it appears many people are interested in the deposit and project cancellation aspects of this story. Perhaps it’s their own deposit they’re concerned about, or they know a buyer who’s anxious about the project’s future, or the vacant lot at the corner of Yonge and Bloor just intrigues.
Whether you’ve bought at 1 Bloor or another site, it’s important to understand what happens when a builder must delay firm or tentative closing dates. It’s kinda … painful.
Can Toronto New Home
Buyers Just Say No?
Most important: When you buy new from a builder, it’s a very different world from buying resale. And I suspect that many buyers assume the processes are pretty much identical until something crops up that makes it very clear they’re not.
For example, in a resale situation if one of the parties wants to delay the closing, an amendment can be done if both parties agree to the change and the terms. Or not, if an agreement can’t be reached.
And that’s a HUGE difference.
With a new home purchase, the manner in which delayed closings and occupancies are handled are set out in the warranties the builder must provide to buyers at the time the purchase agreement is signed.
Yes, buyers are required to sign Addendums at the time of purchase (so you’ve been informed) but in the excitement of the purchase how many buyers want to consider their house or condo might be delayed, or that the project itself might be cancelled, much less the serious ramifications of those delays and/or cancellation?
And if things do take an unfortunate turn, it can be especially upsetting when buyers realize that they’re living in a mostly one-way world of complex written notifications, termination periods, (possible) delayed closing compensation, and changed dates by mutual agreement with possible waived compensation.
Understand Your
New Home Warranties
Is a new home purchase in your future? If so, the Tarion web site provides information about the warranty coverage builders are required to provide to their customers. Be sure to check out Understanding Delayed Closing and Occupancies for detailed information about what happens when a builder can’t meet firm or tentative closing dates. You need to know.
And remember, if a new home or condo is in your future, and you decide to negotiate your offer without the assistance of a real estate agent, you’re the only one representing your interests at the table.
Related Post:
Can Ya Dig It? Standing On The Corner Of One Bloor Street East
Toronto buyers and sellers! Are you looking for a Toronto real estate agent who’s in tune with today’s challenging market? Call Lauren at 416–550–6991, or send me an email.
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