Can a builder legally delay my new home closing date in Ontario?
Yes, Ontario builders have the right to extend closing dates, but only under strict rules set out in your purchase agreement and governed by the New Home Warranties Plan Act and Tarion's addendum. Most agreements of purchase and sale for new construction include a "permitted delay" clause listing events — such as labour disputes, material shortages, or adverse weather — that allow the builder to push the closing date without penalty.
However, the builder must give you proper advance notice for each extension. For a firm occupancy date, the builder must deliver written notice by specific deadlines set out in the Tarion addendum (typically 90 days for the first delay, 120 days for a second, and 90 days for a third). If the builder misses those notice windows, you may be entitled to compensation under Tarion's delayed closing warranty.
Keep copies of every notice you receive and note the dates you receive them. If you believe your builder has not followed the proper procedure, a real estate lawyer can review your agreement and the notice history to determine whether a warranty claim or other remedy is available.
Key takeaways
- Builders may delay closing but must follow specific notice rules in the Tarion addendum
- Proper written notice must arrive within prescribed windows before each extension
- Missing those windows may entitle you to delayed-closing compensation from Tarion
- Keep all notices and consult a lawyer if you believe proper procedure was not followed