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Pre-Construction Condo Delayed Closing: Your Rights in Ontario

Is your pre-construction condo occupancy date slipping? Learn how delay compensation, termination rights and Tarion claim deadlines work in Ontario.

Real Estate4 min readTSLBy the Treadstone Law Team · OntarioUpdated November 1, 2026
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Key takeaways
  • The Tarion Addendum's Statement of Critical Dates sets your occupancy dates, and the builder must give notice of delay at least 90 days before the First Tentative Occupancy Date.
  • Delay compensation is capped at $7,500 in total, including a flat $150 a day for living expenses.
  • If the unit is not ready by the Outside Occupancy Date, you have 30 days to terminate and get a full refund with interest.

You signed for a new condo years ago, and now the occupancy date has moved again. Each new date can feel like a surprise, and it is hard to know what the builder owes you and what you can do about it.

This article explains, in general terms, how the Tarion Addendum dates work, what delay compensation may be available, when you can walk away, and the deadlines for making a claim. Your own agreement controls, so read it alongside this guide.

The dates that matter in your agreement

The Tarion Addendum to your purchase agreement contains a Statement of Critical Dates, and that statement sets your occupancy dates. Think of it as the timetable the builder has promised to follow.

The dates and figures described here come from Tarion's current guidance. Details can differ depending on the Addendum attached to your own agreement, so confirm them there.

Delay compensation: what you may receive

Delayed occupancy compensation is capped at $7,500 in total. It includes a flat $150 a day for living expenses, which needs no receipts, plus other costs such as moving and storage, which do need receipts.

There is a special case for short notice. If the builder gives you less than 10 days' notice of an occupancy delay, you receive $1,500.

ItemWhat to know
Living expensesFlat $150 a day, no receipts
Moving, storage and similar costsCovered, but receipts needed
Total cap$7,500
Less than 10 days' notice of delay$1,500

Keep every receipt, even if you are unsure whether the cost will count.

When you can terminate, and when the builder can cancel

If the unit is not ready by the Outside Occupancy Date, you have 30 days to terminate the agreement. You are then entitled to a full refund of all money paid, including deposits, extras and upgrades, plus interest.

That 30-day window is short, so do not wait to see whether a newer date will hold. Whether to terminate is a big decision, especially if prices or interest rates have changed since you signed, and it is worth discussing with a lawyer first.

A builder can also cancel, but only under the early termination conditions listed in Schedule A of the Tarion Addendum. Each condition must be clearly described in the purchase agreement, with a date by which it must be met, and conditions of a type the Addendum does not permit are unenforceable. Typical permitted conditions include failing to sell enough units, being unable to secure project financing, and delays in getting building or planning approvals.

If a builder terminates, it must return your deposit in full within 10 days. If the builder does not refund a condo deposit, Tarion's deposit protection covers up to $20,000 plus a limited amount of accrued interest. To claim, call Tarion at 1-877-982-7466 for a Deposit Refund Claim Form and submit it with the purchase agreement and cancelled deposit cheques; assessment can take up to six months.

Deadlines for making a claim

Delayed occupancy claims go to the builder first, within 180 days of the occupancy date or termination date. If the builder does not pay, you can claim to Tarion during the first year of possession, or up to 365 days after terminating.

Missing these deadlines can cost you compensation you would otherwise have had, so put the dates in your calendar as soon as a delay is announced.

During interim occupancy, you pay an interim occupancy fee whether or not you move in. It cannot exceed the total of monthly interest on the unpaid balance at the prescribed rate, estimated monthly municipal taxes, and projected common expenses for the unit.

What to do next

Be cautious about signing any amendment or waiver the builder sends. It may change the dates or rights you have, so get advice first.

Frequently asked questions

How much notice must the builder give of a delay?

Notice of a delay beyond the First Tentative Occupancy Date must be given at least 90 days before that date. If the builder gives less than 10 days' notice of an occupancy delay, you receive $1,500.

Is there a limit on delay compensation?

Yes. Compensation is capped at $7,500 in total, including a flat $150 a day for living expenses and other documented costs such as moving and storage.

Can I cancel if my condo is late?

If the unit is not ready by the Outside Occupancy Date, you have 30 days to terminate. You are then entitled to a full refund of money paid plus interest.

How long do I have to file a delay claim?

Claims go to the builder within 180 days of the occupancy date or termination date. If the builder does not pay, you can claim to Tarion during the first year of possession, or up to 365 days after terminating.

Sources

Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

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