New home agreement of purchase and sale
When we review a new home agreement of purchase and sale for a purchaser , we review the contract provisions carefully and explain them to you. We provide you with a detailed report on our findings and discuss with you the fine detail that you need to know.
Buyers of Condominiums are permitted 10 days “cooling off” where the buyer may have their lawyer review the status certificate to the condominium for any issues with the Corporation that may impact their decision. Should the buyer wish to terminate the deal at this stage, they can do so.
Delayed Closing Coverage For New Homes
Under the delayed closing warranty, your builder guarantees that your home will be ready for you to move in either by a date specified in the purchase agreement or by a date that has been properly extended if circumstances occur that delay the home’s completion. In many cases your builder will be required to compensate you if a delay occurs. We often provide our clients with a review of the Addenda and Statement of Critical Dates pertaining to their transaction to ensure that their rights are protected.
(Source: Tarion Website www.tarion.com)
Making Selections in a New Home
If the Agreement of Purchase and Sale or construction contract (“purchase agreement”) included the right to select certain items of construction or finishing, such as colours and styles, these usually cannot be substituted without the purchaser’s written consent.
In addition, if the purchase agreement states that the new home will include a particular item (such as a certain model of appliance, or a particular brand of window), but does not give the purchaser the right to make a selection, these items can only be substituted with items of equal or greater quality.
If the builder substitutes a selected item without the purchaser’s consent, the purchaser can demand that the items be changed to what was originally selected or that the builder make a cash settlement. Examples include:
- Interior and exterior paint colours (not shadings)
- Design and colour of cabinets and counter tops
- Colour and type of kitchen and bath fixtures
- Floor finishes
- Style of interior trim
- Homeowners should contact the builder or seek the advice of a lawyer if they feel that an unauthorized substitution has occurred.
(Source: Tarion Website www.tarion.com)
Availability of new housing tax rebates
The GST and HST new housing rebates discussed in this section are available to the purchaser only in the case of new housing that will be the primary residence of the purchaser or of a relation of the purchaser. A relation is an individual related by blood, marriage, common-law partnership, or adoption. Blood relation is limited to parents, children, other descendants, or siblings. Relation by marriage includes a spouse or a person who is connected to the spouse by blood or adoption. For purposes of the GST/HST new housing rebate only, a relation can also be a former spouse or a former common-law partner. Purchasers of investment properties and second homes (such as cottages) will not qualify for the rebates if the new home is not intended to be the primary place of residence of the purchaser or a close relative. In addition, a residential landlord purchasing or building a newly constructed or substantially renovated residential building for rental purposes may be eligible to claim the “new residential rental property (NRRP) rebate” for some of the federal part of the HST. The CRA has published Guide RC4231, “GST/HST New Residential Rental Property Rebate”.