Pre-construction closing delays: your rights in Ontario

Delays are common in pre-construction. What matters is whether the builder follows the rules in your agreement.

The dates in your agreement

Every new-home agreement includes a Statement of Critical Dates:

First tentative closing (or occupancy) date
Final tentative / firm date the builder must commit to
Outside closing date: the last possible date
The notice the builder must give before each change

Your rights

Proper notice: delays must be set in writing by the deadlines in the schedule.
Compensation: if the builder misses a date without proper notice, delayed closing compensation is up to $7,500, including $150 a day for living expenses.
Termination: if the outside date passes, you can usually walk away with your deposit and interest.

Plan for it

Do not give notice on a rental, or sell your current home, until the firm date is set.
Ask your lender how long it will hold a rate, and what happens if closing moves.
Keep a buffer in your budget for a few extra months of rent.

Dinesh reviews builders' delay history before you commit. Book a call

Quick answers

Can a builder delay my closing?

Yes, within the limits of the Statement of Critical Dates in your agreement. The builder must give written notice by the deadlines set there; delays beyond the outside date let you terminate and get your deposit back.

What compensation do I get for a delay?

If the builder misses a date without proper notice, Tarion's delayed closing compensation is up to $7,500 in total, including $150 a day for living expenses.

What is the outside closing date?

The last date by which the builder must close. If it passes, the buyer can usually terminate the agreement and receive the deposit back with interest.

General information, not legal, tax or financial advice. Programs, limits and rebates change; confirm current rules with Dinesh Jindal, your real estate lawyer and your mortgage professional before you sign.