Understanding Tarion Delayed Occupancy Compensation – Rules, Process, and Builder Responsibilities

Delayed occupancy in a newly constructed home can be a frustrating experience for homeowners eagerly awaiting the completion of their property. Recognizing this, Tarion Warranty Corporation, Ontario’s new home warranty provider, offers protection in the form of Delayed Occupancy Compensation. This compensation aims to alleviate the financial burden incurred by homeowners due to construction delays beyond the agreed-upon occupancy date. In this article, we will delve into what Tarion Delayed Occupancy Compensation entails, the rules governing it, the process of claiming it, and the obligations of builders.

What is Tarion Delayed Occupancy Compensation?

Tarion Delayed Occupancy Compensation is a provision within the Ontario New Home Warranties Plan Act that offers financial protection to homeowners facing delays in obtaining possession of their newly constructed homes. This compensation covers reasonable living expenses incurred by the homeowner due to the delay beyond the occupancy date specified in the purchase agreement or the date specified in the statutory warranty form.

Rules Governing Delayed Occupancy Compensation:

1. Eligibility Criteria: To qualify for Delayed Occupancy Compensation, homeowners must meet certain criteria. They must have purchased a new home directly from a builder, and the delay must be beyond the occupancy date agreed upon in the purchase agreement or the statutory warranty form. Additionally, the delay must be due to reasons within the builder’s control, such as construction delays or incomplete work.

2. Notification Requirement: Homeowners are required to notify both the builder and Tarion in writing of the delay within a specified timeframe. This notification should include details of the delay and any expenses incurred as a result.

3. Maximum Compensation: Tarion sets a maximum daily compensation limit, which may vary depending on the size and type of the home. Homeowners can claim compensation for each day beyond the occupancy date, up to the maximum limit.

4. Eligible Expenses: Delayed Occupancy Compensation covers reasonable living expenses incurred by the homeowner during the delay period. This may include temporary accommodation costs, storage fees, and additional commuting expenses.

Process of Claiming Delayed Occupancy Compensation:

1. Notification: As mentioned earlier, homeowners must notify both the builder and Tarion in writing of the delay within the specified timeframe. This notification should be accompanied by supporting documentation, such as receipts for expenses incurred.

2. Assessment: Tarion will assess the claim to determine eligibility and the appropriate compensation amount. This may involve an investigation into the reasons for the delay and the expenses claimed by the homeowner.

3. Resolution: Once the claim has been assessed, Tarion will communicate its decision to the homeowner and the builder. If the claim is approved, Tarion will issue compensation to the homeowner accordingly.

Builder Responsibilities:

Builders are obligated to adhere to the occupancy date specified in the purchase agreement or the statutory warranty form. They are responsible for completing construction within the agreed-upon timeframe and addressing any delays that may arise due to factors within their control. In the event of a delay, builders are required to compensate homeowners for reasonable living expenses incurred as a result, as per the terms outlined by Tarion.

In conclusion, Tarion Delayed Occupancy Compensation serves as a vital safeguard for homeowners in Ontario, providing financial protection in the event of construction delays. By understanding the rules governing this compensation, the process of claiming it, and the responsibilities of builders, homeowners can navigate delays with confidence, knowing that they have recourse to compensation for any inconvenience or financial burden incurred.