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Purchasing Property from a New Builder in Ontario A Buyer's Guide

2025.04.09

**Purchasing Property from a New Builder in Ontario: A Buyer's Guide**

Buying a newly constructed home from a builder in Ontario can be both exciting and complex. Unlike resale homes, new builds present unique considerations that buyers need to be aware of. This guide will outline the steps buyers should take before and after purchasing a new build, the importance of obtaining legal advice, their rights under the Tarion Warranty program, and the legal consequences of failing to close the transaction.

### Steps Buyers Should Take Before and After Purchasing a New Build

Before Signing the Agreement

1. **Research the Builder**: Check the builder's reputation, past projects, and customer reviews. Ensure they are registered with Tarion.

2. **Understand the Agreement of Purchase and Sale (APS)**: New build agreements can be lengthy and complex, so reviewing all terms and conditions is crucial.

3. **Get Legal Advice**: A real estate lawyer can help identify hidden clauses, additional costs (e.g., development charges), and potential risks.

4. **Check for a Cooling-Off Period**: In Ontario, buyers of new condominium units have a 10-day cooling-off period to reconsider their purchase. However, this cooling-off period does not apply to freehold properties.

5. **Know Your Rights Under Tarion**: Ensure the builder provides warranty coverage through Tarion and review the protection it offers.

After Signing the Agreement

1. **Monitor Construction Progress**: Keep track of completion timelines and maintain communication with the builder.

2. **Review Adjustments and Closing Costs**: Be prepared for extra costs such as utility hook-ups, development levies, and HST adjustments.

3. **Conduct a Pre-Delivery Inspection (PDI)**: Document any deficiencies before taking possession of the home.

4. **Secure Financing**: Ensure your mortgage financing is finalized before the closing date to avoid delays.

Importance of Legal Advice Before and After the Purchase

Obtaining legal advice is crucial for avoiding unexpected costs, understanding your rights, and ensuring a smooth transaction. Before signing the agreement, a lawyer can help you negotiate terms, clarify additional costs, and explain your obligations. After the purchase, legal counsel can assist with closing procedures, review title issues, and ensure the builder fulfills their obligations under the contract.

What to Do If There is an Issue with Closing

Problems can arise at closing, such as:

- **Delays in Occupancy**: The builder may delay occupancy or fail to complete construction on time.

- **Unforeseen Closing Costs**: Additional costs may arise that the buyer was unaware of.

- **Financing Issues**: Problems can prevent the buyer from obtaining the necessary mortgage.

If an issue with closing occurs, buyers should:

1. **Consult Their Lawyer Immediately**: A real estate lawyer can negotiate extensions, dispute additional fees, or explore legal remedies.

2. **Check for Tarion Coverage**: Tarion may provide compensation or assistance if the builder fails to meet their contractual obligations.

3. **Negotiate with the builder**: Some builders may offer alternative solutions, such as compensation for delayed closing.

Buyers' Rights Under Tarion Warranty in Ontario

Tarion provides warranty protection for new home buyers, covering:

- **Deposit Protection**: Refund of deposits if the builder fails to complete the home.

- **Delayed Closing Compensation**: Buyers may be entitled to compensation if closing is delayed beyond permitted limits.

- **Defects and Workmanship Issues**: Coverage for construction defects, major structural defects, and violations of the Ontario Building Code.

- **Warranty Periods**:

- 1-year warranty for workmanship and materials.

- 2-year warranty for major plumbing, electrical, and heating issues.

- 7-year warranty for major structural defects.

Legal Consequences of Not Closing the Deal

If a buyer fails to close the transaction, they may face serious legal and financial consequences, including:

- **Loss of Deposit**: The builder may retain the deposit if the buyer defaults.

- **Lawsuits for Damages**: The builder may sue for losses stemming or resulting from the failed transaction.

- **Impact on Credit Score**: A lawsuit or mortgage default could adversely affect credit ratings.

- **Resale Restrictions**: Some builders impose conditions on assignments or resale before closing.

Conclusion

Purchasing a newly built home in Ontario is a significant investment that requires careful planning and legal guidance. Buyers should take proactive steps before and after the purchase, be aware of their rights under Tarion, and seek legal assistance if issues arise. Failing to close the deal can lead to severe consequences, making it essential to be financially and legally prepared. If you are considering buying a new home, consulting an experienced real estate lawyer can be crucial to navigating the complexities and protecting your investment.

For legal assistance with your real estate transaction, contact Hashmi Law Group at 905-503-1486 or 647-772-8187, or visit www.nhashmilaw.com.

(Waiver: This article or blog is not intended to offer legal advice. You should not rely solely on the information provided here without consulting a lawyer. It is important to seek legal advice from a qualified attorney in Ontario, Canada, to fully understand your rights and obligations before taking any action)

Married but Separated Your Right Not to Sell the Matrimonial Home in Ontario

2025.04.09

Understanding Your Rights Under Ontario’s Family Law Act and the Divorce Act

When a marriage ends, one of the most significant concerns is what happens to the matrimonial home. If you and your spouse jointly own the home, you may be wondering whether one spouse can force the other to sell it. In Ontario, the Family Law Act and the Divorce Act provide protections for spouses, ensuring that neither party can be compelled to sell the matrimonial home without proper legal processes.

What is a Matrimonial Home?

Under the Family Law Act of Ontario, a matrimonial home is any property where spouses reside together at the time of separation. It can be a house, condominium, or even a shared apartment. The key distinction of a matrimonial home is that it receives special legal treatment in a divorce or separation.

Right to Possession of the Matrimonial Home

One of the most important protections under the Family Law Act is the right to possession. Regardless of who holds legal title to the property, both spouses have an equal right to live in the matrimonial home until:

The spouses agree on the home’s sale or transfer.
A court order is obtained determining possession.
The divorce is finalized and property division is settled.

This means that even if one spouse solely owns the property, they cannot evict the other spouse without a court order.

Can One Spouse Force the Sale of the Matrimonial Home?

A spouse cannot unilaterally force the sale of the matrimonial home while still married and before a final court decision. If both spouses are listed as joint owners, one spouse cannot sell or mortgage the home without the other’s written consent. Even if only one spouse is on the title, they cannot sell the home without the other’s agreement or a court order due to the protections granted by the Family Law Act.

When Can a Court Order the Sale of the Home?

If spouses cannot agree on what to do with the home, a court may intervene and order its sale. This typically happens under one of the following conditions:

Equalization of Property – Under Ontario’s Family Law Act, each spouse is entitled to an equal share of the family property acquired during the marriage. If keeping the home is unfairly preventing the equalization process, a court may order its sale.
Financial Necessity – If both spouses cannot afford to maintain the home and neither can buy out the other’s share, a court may order its sale to fairly divide the equity.
Best Interests of Children – If children are involved, the court may prioritize their needs and allow one parent to remain in the home, especially if it provides stability and continuity.

What Happens if One Spouse Refuses to Sell?

If one spouse refuses to sell the home despite financial hardship or a court ruling, the other spouse may apply for a court-ordered sale under the Partition Act. However, the court will only grant this if it is deemed fair and reasonable under the circumstances.

Protecting Your Rights – Get Legal Advice

Property disputes during separation can be complicated and emotionally charged. Understanding your legal rights and options is essential when dealing with matrimonial home disputes. By being informed and seeking professional legal advice, you can make the best decisions for your future.

If you are dealing with a disagreement about selling the matrimonial home, it’s crucial to consult with an experienced family law lawyer. At Hashmi Law Group, we have over 15 years of experience helping clients navigate property division and ensuring their rights are protected.

For legal guidance on your rights regarding the matrimonial home, call us at 905-503-1486 or 647-772-8187, or visit www.nhashmilaw.com for a consultation.

We have offices in Toronto and Mississauga. In addition to regular business hours, we offer weekend and after-business-hours appointments if required.

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