What Are my Options?

[ghanaba]

I purchase a new home in April 2006 hoping to move in a year later. The builder keeps moving the closing date backwards. He has done that twice already for everyone. The last time he did it he compensated everyone $3000 worth in upgrades and a 10% off all additional purchases. 3 days ago I got another letter letter from them moving the closing date from May to Sep of 2008. He cites constructions issues and permits for a new subdivision, etc, etc. Is there anything we can do legally?, how many times can the builder do this. Should I go back to hime an negotiate for more upgrades..
How difficult is it to back out of the whole deal if one chooses that option.
Thanks

[BuildingHomes]

If you are in Ontario..

This has been asked a number of times and I prepared a small article on it.

Also Tarion has a detailed write up on it.

http://www.buildinghomes.ca/index.php/Delays

http://www.tarion.com/HOME/New+Home+Buyers/Understanding+Delayed+Closings+and+Occupencies/DelayedClosingProtectionforFreeholdHomes.htm

And if you have some major concerns, you need to contact your lawyer, the same one who would have reviewed your purchase agreement.

[M & M]

what is the builder?

[patrob]

I purchase a new home in April 2006 hoping to move in a year later. The builder keeps moving the closing date backwards. He has done that twice already for everyone. The last time he did it he compensated everyone $3000 worth in upgrades and a 10% off all additional purchases. 3 days ago I got another letter letter from them moving the closing date from May to Sep of 2008. He cites constructions issues and permits for a new subdivision, etc, etc. Is there anything we can do legally?, how many times can the builder do this. Should I go back to hime an negotiate for more upgrades..
How difficult is it to back out of the whole deal if one chooses that option.
Thanks

It really depend how much you want the house & that particular lot. I believe that there is a way you can back out if you read over the Tarion info, especially if you have been delayed so many times already, but you have to realize that the price you paid for your house back in April 2006 for sure went up if you would want to buy a similar house in the area now...since houses only go up in price.

Maybe you can ask for more free upgrades as compensation...since they already gave you some already...who is the builder BTW:?:

[kobe]

I just had to do this unfortunately.

A Claridge semi detached in Ottawa that we signed the purchase agreement on in December 06 with a closing date of September 07. In May or June, we were delayed till January 08 and in October we were delayed till May 08.

It was the second delay that pushed us over the 120 day period after which anyone who has signed a purchase agreement can request their deposit back. Though the Tarion clause actually says the 120 days has to have elapsed before the builder has to return the money, mine agreed to return the money to me immediately.

[Pete_Coach]

I have never been in a situation like this but let me ask both Ghanaba and kobe this, you bought your homes long before (2006 vs 2008)you will get into them. Are they selling for more now than when you put the down payment? Could you realize a a profit if you sold them now? Can you sell them rather than take your deposit back? Is this even an option? I mean, it has to be costing you something to live where you are as opposed to living in your paid for home. These are two very similar occurrences in two different cities.
Actually, how often does this happen? That kind of delay seems extraordinary to me (April 2006 to Sept 2008).

[patrob]

I purchase a new home in April 2006 hoping to move in a year later. The builder keeps moving the closing date backwards. He has done that twice already for everyone. The last time he did it he compensated everyone $3000 worth in upgrades and a 10% off all additional purchases. 3 days ago I got another letter letter from them moving the closing date from May to Sep of 2008.

Also just realized that because you purchased your house in April 2006 & you will be closing after Jan. 1, 2008 you will be entitled to receive 2% back for the GST transitional rebate which would mean if your house cost lets say $400,000 you would be getting back 2% of GST back which would be approx. $7,400:!: :!:

So this might not be such a bad idea to keep the house since you would really be loosing all that money, plus any appreciation in the value of your house, plus the builder might still compensate you in some form of free upgrades:idea:

Here is the link to the GST Transitional Rebate thread...
http://www.redflagdeals.com/forums/showthread.php?t=443309&highlight=gst

[ghanaba]

My builder is Sunfied Homes located in woodbridge..
At this point it would not make sense to ask for money back I guess, because the house will probably have appreciated, plus all the upgrades I got with the builder..
Also I have to look into the GST. I thought that was only for an investment property..
The only thing is that I think they know what the law is and they are walking the fine line. I hope they can give me some compensation..

[patrob]

At this point it would not make sense to ask for money back I guess, because the house will probably have appreciated, plus all the upgrades I got with the builder..
Also I have to look into the GST. I thought that was only for an investment property..
The only thing is that I think they know what the law is and they are walking the fine line. I hope they can give me some compensation..

Don't walk away...plus you will get 2% of the GST back...so it's a nice bonus:!: Read the thread about the GST Rebate...I already got my 1% back, I wish I was getting 2% back :(

Push the builder to give you some compensation in upgrades ;)

[kobe]

I have never been in a situation like this but let me ask both Ghanaba and kobe this, you bought your homes long before (2006 vs 2008)you will get into them. Are they selling for more now than when you put the down payment? Could you realize a a profit if you sold them now? Can you sell them rather than take your deposit back? Is this even an option? I mean, it has to be costing you something to live where you are as opposed to living in your paid for home. These are two very similar occurrences in two different cities.
Actually, how often does this happen? That kind of delay seems extraordinary to me (April 2006 to Sept 2008).

I briefly considered this route, after consulting an agent I decided it would be too much trouble. You are correct that the best move is to sell it but I was warned that this would be hard to do in my case. Because of the delay, the project had a cloud over it. I polled three agents in the city and they confirmed. So, walking away sucked in that sense.

But, because of changes in income and managing debts, we bought a house costing about 80k more that is significantly nicer and has a firm closing date and is being built right now. We're a lot more excited and regret having bought the first property much more than we regret walking away from it.