Q&A About the Builder
Is Builtup Developments Inc. registered with the Home Construction Regulatory Authority (HCRA)?
Yes, license #B48534
Is there a builder’s warranty?
Builtup Developments Inc is backed by the TARION Home Warranty Program including:
- One Full Year of Complete Customer Service Program
- Two Year Warranty Protection against defects in workmanship and materials as per the Tarion Performance Guidelines
- Seven Year Warranty Protection against major structural defects as per the Tarion Performance Guidelines
- Visit tarion.com/homeowners for more information
What is the builder’s privacy policy?
Upon collecting personal information by fair and lawful methods, the builder will disclose this information to:
- Provide homes to purchasers and tenants
- Maintain an on-going relationship including communication about products/services that are offered
- Communicate with the builders’ lenders / purchasers / potential purchasers / tenants / potential tenants / lease applicants about the homes, leasing opportunities, existing & upcoming projects, as well as promotional offers
- Retains the information only for as long as is necessary to fulfill the above purposes
Q&A About Purchasing a Pre-Construction Home
Is a real estate lawyer necessary when purchasing a newly built home?
It is always recommended to consult with and obtain a real estate lawyer at the time of signing an Agreement of Purchase and Sale
Is there any financial protection before an owner takes possession?
There are four (4) main types of warranty coverage during this period
- Deposit Protection
- Delayed closing / occupancy coverage
- Condominium cancellations
- Financial loss coverage for contract homes
What is a Tentative Occupancy Date?
- When the builder is less able to determine a precise date that the unit can be ready for occupancy
- Since a condominium project requires a lot more time to complete than a single-family home, the potential for construction delays is much higher
- Allows the builder to extend the date multiple times provided they give enough advance written notice for each delay
What is the difference between the Interim Occupancy and Closing dates?
Interim Occupancy Date
- Date you take occupancy of your unit (move in), although you do not officially own it until the entire project is registered
- The time between Occupancy and Closing
- Can last anywhere from a few months to more than a year (Note: during this time the owner will pay occupancy fees)
Closing Date
- Date the Property Title is transferred to the purchaser
- Note: this date is usually 10 to 17 days after the Condominium has been registered.
What is Delayed Occupancy?
Being unable to take occupancy on the anticipated occupancy date set out in the APS
What is a Firm Occupancy Date?
The date the builder is confident the unit can be ready for occupancy
What is an Outside Occupancy Date?
The latest date the builder agrees to provide occupancy to the unit
What is an Interim Occupancy Fee?
Monthly fee paid to the builder that covers three things
- interest on the unpaid balance of your unit
- estimated municipal taxes for your unit
- maintenance expenses
What is an Agreement of Purchase and Sale (APS)?
- Legal document outlining every aspect of the purchase
- Includes the terms to which the customer and builder have agreed
- Recommend that a purchaser review this with their lawyer before signing
What is included in the Statement of Critical Dates?
- First Tentative Occupancy date
- Final Tentative Occupancy date
- Firm Occupancy date
- Outside Occupancy date
- Purchaser’s Termination period
What is a Disclosure Statement?
- Legal document that contains information about the condo corporation
- Includes a copy of the existing or proposed declaration, by-laws, and rules for the condo corporation
- Summary of agreements to be entered into by the builder before the turn-over meeting
- Agreements for condo management services
- Includes a copy of the budget statement for the first year after registration of the condo corporation with the land registry office
What is the Pre-Delivery Inspection (PDI)?
- An inspection that occurs before an owner takes possession / occupancy
- An opportunity to identify items that are damaged, incomplete, missing or not working properly
- Chance to learn about how systems work and how to maintain parts of the home
- Checklist can be downloaded from the Tarion website tarion.com/media/pdi-checklist
Can a unit owner visit the site during construction?
For safety reasons, there is no access to the site for unit owners during construction
What Home Buyers Credits are available and how do I qualify?
Click here for the full list of home buyer credits available in Ontario, and to learn more.
Q&A About Owning a Condominium
What are some of the rights as an owner of a condominium?
- Attending & voting at owners’ meetings
- If eligible, seeking election to the condo board
- Reviewing certain condo corporation records
- Asking for an owners’ meeting in certain circumstances
- Using the common elements in accordance with the Condo Act
- Requesting that an item be added to an owners’ meeting agenda
What are some of the obligations as an owner of a condominium?
- Complying with the Condo Act & the condo corporation’s declaration, by-laws and rules
- Repairing & maintaining the unit in accordance with and subject to the Condo Act & the condo corporation’s declaration and by-laws
- Paying the common expenses on time
- Notifying the condo corporation if the unit has been leased
- Attending & voting at certain meetings
What are the condominium Declaration and Description documents?
- Legal documents containing important information about the condo corporation & the property
- The Declaration must be included in the Disclosure Statement
What information is contained in a condominium Declaration?
- Proportions (in %) of common interests allocated to each unit
- How much each unit will pay for common expenses (in %)
- Which part of the building are exclusive use common elements
- Responsibilities of the owners & the condo corporation to repair & maintain the units and common elements
What information is contained in the condominium Description?
- The definition of units and common elements as well as specifies the boundaries between them
- Survey showing the property boundaries
- Diagrams showing the shape & dimensions of each unit
- Specification of the boundaries of each unit and what is considered part of the common elements
Who makes up the Board of Directors?
An elected group of people responsible for governing the affairs of the condo corporation
What is a Turn-Over Meeting?
- The turn-over of important documents from the builder to the condo corporation
- The election by unit owners of the first owner-controlled condo board of directors
How are Common Expense Fess calculated?
- From the budget made by the condo board outlining various expenses for the fiscal year
- The Declaration will state the portion of the common expenses each owner is required to contribute (in %)
Can the unit be leased?
Leasing out a condo unit is an option with special considerations:
- The unit owner is responsible for ensuring that the renter abides by the condo corporation’s declaration, by-laws & rules
- Within 10 days of entering or renewing the lease, The Condo Corporation must be notified by the owner of the unit that it has been leased and provide the renter’s information (form available at condoauthorityontario.ca)
- For further information, refer to the Residential Tenancies Act, 2006 which outlines the rights & responsibilities of landlords and tenants
Can the unit be used as a short-term rental (eg Air BnB)?
- Depending on the condo corporation’s declaration, by-laws & rules, an owner may need special permission from the condo corporation to use the unit as a short-term rental
- All required licenses and permissions would need to be obtained from the City
Can a purchaser visit the site during construction to see the progress of their unit?
For safety reasons, there is no access to the site for unit owners during construction
Q&A About Warranties
What is a New Home Warranty?
- Financial protection before an owner takes possession
- Protection against construction defects after possession
What is the One-Year Complete Customer Service Program Tarion Home Warranty?
- Begins on date of possession and lasts one year (even if the home is sold)
- Requires a home is constructed in a workman-like manner & free from defects in material
- Protects against Ontario Building Code violations
- Protects against unauthorized substitutions
- Requires the home to be fit for habitation
- Within the first year, warranty claim forms can be submitted after the first forty days (initial submission), after six months (mid-year submission) and again at the one-year mark (be sure to check the Tarion website for more details)
What does the Two-Year Warranty cover?
- Applies for two years, beginning on the home’s date of possession
- Protects against water penetration through the basement or foundation walls
- Protects against defects in work or materials that result in water penetration into the building envelope
- Covers defects in work or materials that result in the detachment, displacement or deterioration of exterior cladding
- Protects against violations of the Ontario Building Code that affect health & safety
What is covered under the Seven Year Major Structural Defect Warranty?
Includes significant damage to:
A) soil movement & major cracks in basement walls
B) chemical failure of materials & environmentally harmful substances or hazards
C) collapse or serious distortion of joints or roof structure
What is a Warranty Information Sheet?
- Information sheet that provides a basic overview of the warranties and protections that come with a new condominium unit
- Discusses
- Pre Delivery Inspections
- Deposit Protection
- Delayed Occupancy Coverage
- Construction Performance Guidelines
- Warranty Exclusions
- Common Elements Warranty
- Information regarding Tarion
How do you make a warranty claim?
Warranty claims can be made by completing the Warranty Form found on the Tarion website
What is the Tarion Addendum Form and what does it include?
- Mandatory in all Agreements of Purchase & Sale (APS)
- Provides advice and informs the purchaser about their rights and obligations under the New Home Warranties & Protection Plan
- Has a statement of Critical dates clarifying when the home is expected to be ready for occupancy
- Limits the vendor’s use of Early Termination Conditions in the APS
- Discloses information about the status of development approvals and the status of construction so the purchaser can better assess the risk that a delay may occur
- Has restrictions and processes for any delays that may occur
- Provides for compensation to purchasers where a delay occurs in excess of permitted delay; sets an Outside Occupancy Date beyond which the purchaser has a right to terminate the transaction
- Has summary sheets for closing costs and adjustments
Q&A About Tarion / HCRA / CAO
What is Tarion and what do they do?
- Tarion is a not-for-profit organization that administers Ontario’s New Home Warranty and Protection Program
- Tarion’s role is to ensure buyers of new homes receive the coverage they are entitled to under their builder’s warranty
- Visit tarion.com for more information
What is Tarion’s “MyHome”?
- Tarion’s online tool for homeowners
- Visit myhome.tarion.com for more information
What is the Home Construction Regulatory Authority (HCRA) and what do they do?
- The HCRA is responsible for regulating the conduct of new home builders and vendors
- HCRA is a not-for-profit corporation designed by the Ontario government to administer and enforce the New Home Construction Licensing Act, 2017 and associated regulations.
- HCRA regulates new home builders and vendors in Ontario. HCRA holds licensed builders to professional standards, protects the public interest, and enhances consumer confidence. In addition, HCRA strives to educate consumers to ensure they can make informed decisions and understand the benefits of a regulated home building sector.
- To reach the HCRA, you can call 1-800-582-7994, email info@hcraontario.ca or visit their website at hcraontario.ca
- Focuses on 4 key areas:
- Licensing
- Conduct
- Competency
- Financial Responsibility
What is the HCRA information sheet?
Outlines the possible risks of buying a unit in a pre-construction condominium
What is the Condominium Authority of Ontario (CAO) and what do they do?
- CAO is an organization that aims to improve condo living by providing services and resources for condo communities
- CAO provides information and training about a condo owner’s rights and responsibilities, the roles and responsibilities of condo management and changes to the Condo Act that affect condo communities
- Visit condoauthorityontario.ca for more information