Real Estate

OTTO construction delay - Countrywide

  • Last Updated:
  • Sep 14th, 2017 10:44 am
[OP]
Newbie
Sep 12, 2017
4 posts

OTTO construction delay - Countrywide

it's my first time buying pre-construction home. The first delivery date was Dec 2016. Now it has been delayed multiple times to Mar 2018. However, the construction of my block hasn't started yet. Given their current progress, I would expect the home to be ready by the end of 2018. A delay of almost 2-year was something I never heard before. Shall I be concerned? Are there any other home owners have the same thoughts?

The interest rates keep increasing. And the progress of home construction has been really slow. It will be outside of the home delivery period in the contract when they can potentially deliver my lot. I wonder if there is any legal implication behind this? and if there is anything I can do about it?

Anyone has similar experience in the past?
7 replies
Penalty Box
May 1, 2012
6466 posts
2808 upvotes
Markham
In your purchase agreement, there's a schedule on delays and completion dates. Refer to that to see when you are eligible for compensation.

As for what YOU can do right now, well there are a few things you can do:
1. Talk to your lawyer and he'll tell you what I told you.
2. Interest rates are rising but there's nothing you can do. You can always try locking something in for 6 months before when you think you'll close, but that's a big IF.
3. You can opt out of your purchase if you are so inclined. The purchase agreement you signed isn't so much to buy a piece of land, as it is to agree to buy a unit from a company.
4. I would probably complain to Countrywide, a lot... they may give you some free upgrades. Just beware that sometimes they give you some stuff and make you sign something that forfeits your TARION delay payments. Don't do that, read the stuff they make you sign.

Yes you can walk away if you want, but that means you lose your deposit and the builder will sell your unit for probably more than you paid for. Either way, you're basically stuck waiting, nothing you can do.
Deal Addict
Feb 2, 2014
4117 posts
821 upvotes
Toronto
Eileen7424 wrote:
Sep 13th, 2017 11:11 am
it's my first time buying pre-construction home. The first delivery date was Dec 2016. Now it has been delayed multiple times to Mar 2018. However, the construction of my block hasn't started yet. Given their current progress, I would expect the home to be ready by the end of 2018. A delay of almost 2-year was something I never heard before. Shall I be concerned? Are there any other home owners have the same thoughts?

The interest rates keep increasing. And the progress of home construction has been really slow. It will be outside of the home delivery period in the contract when they can potentially deliver my lot. I wonder if there is any legal implication behind this? and if there is anything I can do about it?

Anyone has similar experience in the past?
Refer to your Agreement of Purchase And Sale. There is a Tarion sheet of Critical Dates which goes through this in sufficient details.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
[OP]
Newbie
Sep 12, 2017
4 posts
Thanks! yes, the builder agrees to pay compensation and it reaches the upper limits so I think there is not much argument about that. The last date on the Tarion is Apr 2018 which I don't think they can deliver the home... I will ask my lawyer what I should do after that date.
[OP]
Newbie
Sep 12, 2017
4 posts
the last date on Tarion is Apr 2018 which I don't think they are able to deliver the home by then. :(
Deal Addict
Dec 21, 2011
3222 posts
572 upvotes
London
Wow, this makes me think I would never buy a new build. Sorry to hear about your delays OP, that's rough!
Deal Expert
User avatar
Apr 21, 2004
40961 posts
9894 upvotes
Just make sure they don't build anything compromised. Do site inspection every week once they start.

Good thing is prices have gone up because of the delay (peak earlier this year was too short to take advantage of anyway), bad thing is you are still paying rent or a current mortgage.

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