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New Condo / Unfinished building : what are my rights?

Ott_Gal

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Bought a waterfront condo in Ottawa. Supposed to be a high quality condo in prominent area.

Got notice, 18 months after the original closing date, that my unit was ready.

Upon further investigation, I realize that
  1. ammenities non existant (might take months or years?)
  2. no lights in the hall ways
  3. no flooring in the hall ways
  4. lobby is a construction site
  5. one of 2 elevators (the 1 that is working) is a construction site itself.
  6. some buyers have no hot water
  7. no gym
  8. essentially, the building is unfinished

QUESTION: Am I obligated to take possession of my unit even thought the building is unfinished?
 
Ott_Gal, the first thing you should do is consult your lawyer.

But you've come calling to the right place. Toronto is home to the unfinished but occupied condo building.

If you are among the first people to move in (even on your floor), chances are you will find your building looking like a construction zone. Amenities (gym, pool) are typically the last thing to be installed/completed. Because work is probably still taking place in the building, hallway floors and walls are not completed due to the high risk of damage. The same goes for the completion of the lobby. If the building has no external construction elevator, the interior elevators are probably being used during the completion of the building, which means that at least one is to be found out of service. You probably will not have any recycling service, either. Dust from construction will be constant for the next few months.

Also, it's not unusual to have fire alarms go off in a building in this kind of state. Be ready for that.

Lack of hot water can typically be followed up with calls to your management company or the building site/service manager. This might demand constant complaints in my experience. No lighting in the hallway is a serious issue and should be looked into right away. You should have some available for safe passage. Also, make sure that you are informed about building evacuation procedures and locations of stairwells.

Otherwise, good luck with the move in.
 
Hydrogen:

I calmed down and called the Builder. This is their schpeil, which I take with a grain of salt.

  1. I have no choice but to take possession when I am told
  2. They will start finishing the building after the last person has moved in (1 mo after I move in)
  3. They will finish everything, amenities incl., immediately thereafter
  4. the Builder does not get paid until they finish the whole building
  5. The buyer signs an "interim" mortgage until the building is done, and then they sign a "real" mortgage
  6. The Builder *WILL* complete the building ASAP due to their income depending on it.
Anyways, that' was their schpeil. It kinda makes sense, but does not explain the toronto unfinished condo problem --- since we all have Builders who must abide by the same provincial laws.
 
Typically, the minimum standards are being met when people start to move in. However, I have heard of many instances where Canada Post would not deliver to a partially occupied building because they considered a construction site and would not allow a letter carrier to enter it.

I think the number of unfinished condos is a product of a labour shortage. There is a construction boom not only in Toronto, but across the country, and this has a put immense pressure on the available labour force. Moving into an unfinished building is annoying, but at least it's finished.

Btw, the answers provided by your builder are not unusual. Regardless, good luck with the move-in, and hope the building gets whipped into shape sooner rather than later.
 
It all sounds pretty routine to me, with the exception of the lack of lighting in the hallways, which you should raise hell about (safety issue). Other than that, I don't think you have a complaint, at least for a while. I have seen several new buildings in the state you describe, and it's to be expected. Construction has to continue somehow.
 
Unfortunately, the issues Ott_Gal is experiencing is typical.

One question I have regards the maintenance fees.
Since most, it not all, the amenities aren't completed, why should one have to pay that component of the occupancy fee?

It's bad enough that you have to pay 'rent' to live in an incomplete unit in a construction zone :eek:
 
I had a similar experience with a newly built townhouse condo. After contacting Tarion about it, they informed me that occupancy can begin as long as minimum standards are met, which include 1 flushing toilet, running water (not necessarily hot) and standing drywall. Beyond that, nothing else is required.

Your best bet is to be sure to be very thorough in your PDI (include common elements) and then even more thorough in your 30 day warranty form. From the date your 30 day form is submitted, the builders have 120 days to address the items listed, if at that point, they are not, Tarion should be contacted to investigate further. Builders are usually very responsive when Tarion gets involved, as it effects their reputation.

Also, I don't believe maintenance fees are required to be paid during the occupancy phase, though your occupancy fees will probably be high enough to cover the cost of maintenace anyway.
 
with my condo (future home yet to be built) ... Tridel has been really good and provided an overview of what I can expect when occupancy fees comes around on their e-login page for purchasers ... as follows:

********
Monthly Occupancy Fees

Financing Component
unit price @ 6.65% interest
Calculated using the Mortgage Amount and the Current Bank Rate for a Mortgage with a one year term. Actual interest rate may vary. (Schedule 'A' of Agreement of Purchase and Sale.) $_______

Estimated Monthly Realty Taxes
0.9915552% of the Sale Price divided by 12 $________

Estimated Monthly Common Expenses
Dwelling $261.66
Parking $0.00
Locker $0.00

Other Product Expenses $0.00
Cross Phase Expenses $0.00

Total Monthly Occupancy Fees $1,407.65
********

based on the info above ... it appears that one would have to pay 'maintenance fees' through the 'monthly common expenses' listed above for a condo + amenities during the occupancy period even though the facilities may not be completed/ready yet
 
This scenario is common, I can add my voice to the "me too" brigade.

I was second to move into my unfinished building - the floors above mine hadn't been certified as fit for occupancy. So getting to the common areas/roof was not even remotely possible.
As another poster said, as soon as the minimum habitable standard is attained and the relevant municipality signs off on it, you're as good as in there. The developer wants you in ASAP to minimize any delayed occupancy expenses and start to stop losing money.
Having said that - you SHOULD have hot water (sanitation) and lights in the hallway (emergency exits), so you should be talking to them about this.

Regarding common areas - same situation here, paying condo fee as part of the occupancy fee despite there being a lack thereof.

Bottom line is - this scenario is covered in the small print of your agreement to purchase, and it will be in favour of the developer.

Good luck on getting finished and registered quickly. Some good builders such as Tridel as mentioned above shouldn't give you too many problems, others can be a little slower and troublesome.
 
Also, I don't believe maintenance fees are required to be paid during the occupancy phase, though your occupancy fees will probably be high enough to cover the cost of maintenace anyway.

solaris is right. Everyone pays maintenance fees even during interim closing. You also need to pay hydro as well I think (even to the time you didn't occupy it I think but costs aren't that high since it's hardly used)

The maintenance fees are included in your occupancy fees (interest + maintenance).

The good thing at least are builders can't hold off closing for too long anymore. West one didn't close until a year later. I feel bad for those who were the first ones to do PDI.
 
I've heard you can actually delay your occupancy date by simply refusing to sign the form at your PDI, as by law, the PDI must be completed prior to taking occupancy. So by refusing to sign, you officially can't take possession.
 
I have seen large, small, glass , no glass condos, and can't find a direct correlation to maintenance fees. I have a gut feeling, in order to save building cost, the builders do costing cutting and choose lower quality choices. In the long run these choices result in issues an costs that are uploaded to the condo board. Higher maintenance fees would be required keep funding the higher maintenance cost. I would differentiate between deficiency and poor quality. Deficiency is supposed to be corrected early and paid for by the builder. Poor quality is not a deficiency but has long term cost factors that affect maintenance fees.
 
If you had this verbiage in your contract, then you may be out of luck...

Objection:

“They’re forcing me to take occupancy of my unit! The building is a construction warzone, but they’re saying if I don’t take occupancy, they’ll slap ME with breach of contract!â€

“I’ve been in the building for ONE YEAR – six months of occupancy, and six months of actual ownership, and the party room and gym aren’t finished yet!â€

Verbiage:

“The Unit shall be deemed to be substantially completed when the interior work has been finished to permit occupancy. The Purchaser acknowledges that failure to complete the common elements on or before the Closing Date shall not be deemed to be failure to complete the Unit.â€

Objection:

“I swear to God – it’s like they put the absolute minimum amount of work necessary into this unit to be able to allow occupancy!â€

Verbiage:

“The Unit shall be deemed to be substantially completed when the interior work has been finished to the minimum standards allowed by the Municipality so that the Unit may be lawfully occupied, notwithstanding that there remains other work within the Unit and/o the common elements to be completed.â€
 

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