If you’re buying a home or condo during its pre-construction phase, you and the seller or builder will likely negotiate a move-in date. This is the “closing date,” or “settlement date,” for freehold properties. This is often referred to as the “occupancy date” for condos.
This date might shift for a number of reasons. Additional lodging, transportation, and storage charges may accrue if there are closing and occupancy delays. If your vendor or builder fails to provide you with enough notice of a delay or if the construction of your house is delayed over a specific date, you will be reimbursed for the delay under the delayed closing/occupancy coverage of your new home warranty.
Refer to Your Addendum
The Addendum to your Purchase and Sale Agreement contains information on your closing/occupancy date and the delayed closing warranty.
Please give the Addendum your full attention.
This document begins with a Statement of Critical Dates that specifies:
Closing and occupancy date extensions (if any) and when the vendor/builder anticipates work to be finished and you may expect to move in; Deadlines by which your contractor or supplier must inform you of a delay
Closing Date Types
A Firm Closing/Occupancy
This option is available if the seller or builder guarantees that the house will be finished by a certain date.
A Tentative Closing/Occupancy Date
If the seller or builder is unsure of when the house will be ready for occupancy, they might utilize a “tentative closing/occupancy date.”
Firm Closing/Occupancy Date
The vendor/builder is obligated to pay for the inconvenience of a delayed closure or occupancy date if the Firm closure/Occupancy Date they established is missed.
Tentative Closing/Occupancy Dates
Freehold Homes
If the vendor/builder gives you enough notice, they may push out the closing date two more times by up to 120 days each time.
Condominiums
If the vendor/builder gives you enough notice, they may push back the estimated move-in date many times without paying you more.
The Outside Closing/Occupancy Date
Your vendor or builder will be able to accommodate you until the Outside Closing/Occupancy Date. Typically, a year must pass between the Firm Closing Date and the Second Tentative Closing Date for a freehold property. Condominium closing dates are established between the buyer and seller at the time of contract signing.
You have 30 days from the Outside Closing/Occupancy Date to cancel the agreement if your house is not ready for occupancy. The buyer has the right to cancel within this time. You are entitled to delayed closing/occupancy compensation and the return of any funds supplied if you cancel the Agreement.