News Corner - Lucy and Gilbert
Thinking of buying a house or condo to put up on Airbnb? Whether you're hoping to subsidize the mortgage on a vacation home or are just looking for a creative way to make a few extra bucks, buying a property to rent out for short-term use is becoming a widely popular investment strategy.
In some cases, managing an Airbnb, HomeAway or KidandKoe listing could generate a great profit. However, such financial gains are not without their potential pitfalls. Savvy investors know the key to success is due diligence. Here are some things to look out for.
1. Does your condo board (or city) allow it?
2. Are you buying in a popular area?
3. Take into account your overhead and understand your ROI
4. Use the right REALTOR®
1/14/2019 Condominium Units - Firm Occupancy Date | Tarion.com
Condominium Units - Firm Occupancy Date
Details about the delayed occupancy warranty are provided in the Tarion Addendum, which your builder is required to attach to your purchase agreement.
The rst page of the Addendum is a Statement of Critical Dates which must be signed by both you and your builder. It clearly indicates the date when your builder expects to nish your condominium unit and the latest possible date for permitted extensions.
The following key dates are provided:
The Firm Occupancy Date – The date that you and your builder agreed your condominium unit will be ready for you to move in. If this date is not met, your builder must set a Delayed Occupancy Date and you are entitled to delayed occupancy compensation. The Outside Occupancy Date – This is the latest date that your builder agreed to provide you with occupancy of your condominium unit. You and your builder agree upon this date at the time of signing the purchase agreement.
The above dates must fall on a business day as dened in the Addendum.
The Purchaser’s Termination Period – If your condominium unit is not ready for occupancy by the Outside Occupancy Date, you have a 30-day period in which to terminate the agreement.
You may wish to use this Statement of Critical Dates calculator to help you determine the various dates related to your home’s occupancy.
Occupancy dates must not be “oating dates” dependent on some other event. They must be calendar dates or you may be entitled to terminate your purchase agreement.
Delayed Occupancy Compensation
Delayed occupancy compensation up to a maximum of $7,500 is payable:
If occupancy occurs on a date after the Firm Occupancy Date; or If you exercised your right to terminate the purchase agreement due to delay as permitted by the Addendum (e.g. as per the Purchaser’s Termination Period). In this case you are also entitled to a full refund of all monies paid (i.e., deposits, extras and upgrades) plus interest.
Delayed occupancy compensation for living expenses (meals and accommodation) is payable based on a xed amount of $150 a day for each day of delay until the Delayed Occupancy Date or the date that the purchase agreement is terminated. Receipts for living expenses are not required.
Compensation is also payable for costs incurred by you as a result of the delay (for example, additional moving and storage costs). Receipts for these costs must be provided.
In addition, If your builder fails to give you 10 days notice of an occupancy delay, you will be compensated in the amount of $1,500 ($150 x 10 days).
Making a Delayed Occupancy Compensation Claim
If you are entitled to delayed occupancy compensation, you may make a claim to your builder within 180 days of your occupancy date or the date on which you terminate your purchase agreement. If your builder does not pay your claim, or if you and your builder are unable to agree on the amount of compensation payable, you may make a claim to Tarion during the rst year of possession (or up to 365 days after you terminate your purchase agreement). To do so, please complete the Delayed Closing/Occupanc y Claim Form, available through MyHome .
If you make a claim to your builder, be sure to provide all receipts and other supporting documents for direct costs incurred as a result of the delay. Keep copies of your receipts and other documents as these will be needed if you make a claim to Tarion. Note: Receipts relating to living expenses are not required.
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