Real Estate

OTTO construction delay - Countrywide

  • Last Updated:
  • Feb 21st, 2018 9:09 am
[OP]
Newbie
Sep 12, 2017
7 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?
19 replies
Deal Fanatic
May 1, 2012
6582 posts
2999 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
4472 posts
905 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
7 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
7 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
3308 posts
587 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
42966 posts
10715 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.
Newbie
Oct 1, 2012
19 posts
7 upvotes
Toronto
I also purchased a townhouse from the Otto development. Countrywide told us they stopped striving to complete our unit by February 2018 because we did not sign an occupancy amendment, thus delaying the occupancy date to April 2018 (note: by February we were already entitled to the full delay compensation, capped at $7500). The sales person never gave us the document to sign (or even bother to tell us about it) when we met in November to sign some other documents. They admitted to not giving us the document to sign but continues to blame us for the delay because we did not sign it. I have emailed them multiple times but keep getting the same cookie cutter emails. Is there anything we can do?
Newbie
Jan 6, 2012
75 posts
23 upvotes
Imagei dont mean to grab this thread, but im posting on behalf of a friend in a similar circumstance, just trying to get some opinions if ppl beleive his home might be finished on time, or delayed. is supposed to be delivered by aug 2018, it was in this condition by around mid/end jan. first delay was april to august, so they are still entitled to one more delay. my friend is actual hopeful it will be delayed beyond august since he is not ready for the move, and is hopeful they'll be delayed with all the snow, freezing temps etc. wondering if anyone has any opinions, please feedback would be welcome, thank you.
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Deal Addict
User avatar
Oct 9, 2008
4542 posts
1112 upvotes
Thornhill
Eileen7424 wrote:
Sep 13th, 2017 6:43 pm
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.
Builder will likely send you Mutual Release Agreement prior to the April 2018 date because of how delayed the development unless they're OK with racking up the compensation. All dependent on whether or not they sold the units at high enough prices to cover. As soon as you receive a Mutual Release Agreement, give it to your RE lawyer and they'll take it from there with any options you may have.

Unfortunately delays/cancellations is a gamble we all have to take when we participate in such investments.
Newbie
Feb 18, 2012
40 posts
10 upvotes
Aurora
If can delay to as late as your final closing date.
[OP]
Newbie
Sep 12, 2017
7 posts
snow00774 wrote:
Sep 13th, 2017 6:45 pm
Wow, this makes me think I would never buy a new build. Sorry to hear about your delays OP, that's rough!
Thanks! I will not recommend it either!
[OP]
Newbie
Sep 12, 2017
7 posts
alanbrenton wrote:
Sep 14th, 2017 10:44 am
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.
that's actually what concerned me... they continued the construction in winter... in the past two months... I heard many materials have minimum temperature of 10 degrees for use... I don't think I can do anything even if I do site visit though... and I don't think the home built in winter would have the same quality with ones built in summer... :(

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