Purchaser Makes Claim to the Vendor First
To receive Delayed Closing Compensation, your purchaser should make a claim to you within 180 days after the Closing Date or after the Purchase Agreement is terminated by your purchaser as discussed in Chapter Six. He or she should include receipts for any direct expenses, other than living expenses, resulting from the delay. You will assess the claim by calculating the amount of Delayed Closing Compensation payable based on the fi xed amount of $150 per day of delay for living expenses, plus other direct expenses as evidenced by
receipts provided by your purchaser up to a maximum of $7,500. You are expected to calculate and provide your Delayed Closing Compensation assessment response promptly to your purchaser and to use reasonable efforts to settle the claim.
When the claim is settled, you must prepare an acknowledgement form provided by Tarion and signed by both parties which:
Includes your assessment of the Delayed Closing Compensation payable; Describes in reasonable detail the cash amount, goods, services or other
consideration which your purchaser accepts as compensation (the “Compensation”), if any; and
Contains a statement by your purchaser that he or she accepts the Compensation, in full satisfaction of any Delayed Closing Compensation payable by you.
The completed acknowledgement form must be provided to Tarion within 30 days after it has been completed.
Claims to Tarion
If you and your purchaser cannot resolve the Delayed Closing Compensation claim in a timely manner, your purchaser may submit his or her claim to Tarion during the fi rst year of possession of their new home or up to 365 days after the Purchase Agreement was terminated by your purchaser as discussed in Chapter Six, as the case may be.
Tarion will ask your purchaser to submit a form describing the claim together with supporting materials including any necessary receipts. You will also be contacted for your input on the claim. Tarion will then conduct a desk assessment (conciliation) of the claim and issue a Warranty Assessment Report to your purchaser and to you. If Tarion determines that you failed to pay a proper claim, the conciliation will be considered “chargeable” to you and will be noted on your record. If you do not resolve the claim within 30 days after issuance of the Warranty Assessment Report, Tarion will settle directly with your purchaser and will invoice you for the claim amount plus an administrative fee.
i) ii)
“Addendum”
The Tarion Addendum which must accompany every new freehold Purchase Agreement signed on or after July 1, 2008.
“Business Day”
Any day other than: Saturday; Sunday; New Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day;
Remembrance Day; Christmas Day; Boxing Day; and any special holiday proclaimed by the Governor General or the Lieutenant Governor; and where New Year’s Day, Canada Day or Remembrance Day falls on a Saturday or Sunday, the following Monday is not a Business Day, and where Christmas Day falls on a Saturday or Sunday, the following Monday and Tuesday are not Business Days; and where Christmas Day falls on a Friday, the following Monday is not a Business Day.
“Closing”
The completion of the sale of the Property, and “Close” has a corresponding meaning.
“Commencement of Construction”
The commencement of construction of foundation components or elements (such as footings, rafts or piles) for the home.
“Critical Dates”
The First Tentative Closing Date, the Second Tentative Closing Date, the Firm Closing Date, the Delayed Closing Date, the Outside Date for Closing, and the last day of the Purchaser’s Termination Period.
“Delayed Closing Compensation”
A maximum of $7,500 payable by a builder to a purchaser when the Closing Date has been delayed beyond the Firm Closing Date, as described in the Addendum and Chapter Seven of this Guide.
“Delayed Closing Date”
The date on which the vendor agrees to Close, in the event the vendor cannot close on the Firm Closing Date, as set in accordance with Section 6 of the Addendum.
“Early Termination Conditions”
The types of conditions that the vendor is permitted to include in the Purchase Agreement (other than conditions permitting termination of the Purchase Agreement due to the fault of
“Firm Closing Date”
The fi rm date on which the Vendor agrees to Close, as set in accordance with the Addendum.
“First Tentative Closing Date”
The date on which the vendor under the First Tentative Closing Date option, at the time of signing the Purchase Agreement, anticipates that it will be able to Close, as set out in the Statement of Critical Dates.
“Outside Date for Closing”
The latest date that the vendor can set as a Delayed Closing Date before the purchaser’s right to terminate the Purchase Agreement for delay arises. For Firm Closing Date transactions, this date is 365 days after the Firm Closing Date. For Tentative Closing Date transactions, this date is 365 days after the earlier of the Second Tentative Closing Date and the Firm Closing Date unless in each case the date is changed by mutual agreement.
“Purchase Agreement”
The Agreement of Purchase and Sale made between a vendor and purchaser, and does not include a construction contract for a contract home.
“Purchaser’s Termination Period”
The 30-day period during which the purchaser may terminate the Purchase Agreement for delay, in accordance with paragraph 11(b) of the Addendum.
“Second Tentative Closing Date”
The updated estimated date (if applicable) that the Vendor under the Second Tentative Closing Date option, anticipates that it will be able to Close, as set in accordance with Section 3 of the Addendum.
“Statement of Critical Dates”
The Statement of Critical Dates attached to or accompanying the Addendum (in form to be determined by the Tarion Registrar from time to time). The Statement of Critical Dates must be signed by both the vendor and purchaser.
“the Act”
The Ontario New Home Warranties Plan Act including regulations, as amended from time to time.
“Unavoidable Delay”
An event which delays Closing which is a strike, fi re, explosion, fl ood, act of God, civil
insurrection, act of war, act of terrorism or pandemic, plus any period of delay directly caused by the event, which are beyond the reasonable control of the vendor and are not caused or contributed to by the fault of the vendor.
“Unavoidable Delay Period”