Buying a new construction home? 3 things to know about the closing date
Monday Jul 26th, 2021
When purchasing a newly built home, your closing date is more than just a date on a calendar. The following is what you need to know about closing dates before signing your purchase agreement.
1. There are different types of closing dates.
Depending upon what kind of home you’re buying, your purchase agreement will indicate a closing date if you’re purchasing a freehold home or an occupancy date if purchasing a condominium unit, and this date can be “firm” or “tentative.”
A firm closing date is the date your builder has committed to completing the home for your possession or occupancy. A tentative date is an estimate as to when the property will be completed. The tentative date will either be confirmed or extended as construction of the home progresses.
2. Your closing date can move.
The addendum that is included with your purchase agreement contains important information about your closing or occupancy date, as well as any closing fees and other possible costs. It will also include a Statement of Critical Dates, which outlines your closing and occupancy dates, the conditions under which these dates could be changed, and the latest possible dates for extensions.
3. Your warranty includes delayed closing coverage.
When purchasing your home, you and your builder agree to a date by which you’ll be able to move in, which is outlined in the purchase agreement. Delays to this date can cost you money for alternative accommodation, moving and storage fees.
Fortunately, your new home warranty comes with delayed closing coverage. This ensures that you’re compensated if your builder doesn’t provide enough advance notice of a delay or if the completion of your home is deferred beyond a certain date.
As a new home buyer, it’s important to be aware of your rights and responsibilities and what to look for in the documents provided by your builder. Find out more information about your new home’s warranty at tarion.com.
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