Pre-Construction Purchase Agreements and The Tarion Statement of Critical Dates

Ontario real estate lawyer Jonathan Dippolito explains how the Tarion Statement of Critical Dates impacts pre-construction home and condo purchases in Ontario. He outlines how builders set estimated completion dates but can legally extend those dates without compensation in many situations. The Tarion Statement of Critical Dates defines key timelines for construction, occupancy, and final closing, helping buyers understand when they can realistically take possession.

Delays that go beyond the Tarion outside or firm closing date may entitle purchasers to delayed closing compensation—$150 per day, up to a maximum of $7,500—unless the builder claims an unavoidable delay, such as a strike or natural disaster. Delays caused by the purchaser, such as not securing financing in time, can also affect closing and may result in penalties.

Being clear on these critical dates and the rules surrounding them is important for anyone entering a pre-construction agreement in Ontario.

Jonathan Dippolito, real estate lawyer at Devry Smith Frank LLP and Woitzik Polsinelli LLP, focuses on a range of real estate matters, including pre-construction and newly built properties. Admitted to practice in both Ontario and New York, Jonathan applies his experience to help clients manage uncertainty and financial risk with solutions tailored to their situation.

For legal support with pre-construction transactions, contact Jonathan Dippolito at jonathan@durhamlawyer.ca or 289-220-3229