By Martin K. I. Rumack
You may be aware that there has been a change in TARION requirements for the resale of a new home by a party who buys from a Builder and does not occupy the property and then sells to a second Buyer. This provision will not apply to a situation where the Buyer obtains the written consent from the Builder to assign the Agreement to a second Buyer, and the actual closing documents are entered into between the Builder and the second Buyer.
If the first Buyer does not occupy the unit, and the closing documents to the second Buyer will be between the Reseller and the second Buyer; and not between the Builder and the second Buyer, the reseller i.e. the first Buyer must register as a registrant with TARION and pay the required fees of $350.00. For your reference, attached please find a summary from TARION of their requirements. Any person who does not comply is subject to the penalties imposed by TARION. Therefore, you must ensure, that if you are representing a reseller of a new home who has not occupied the home, registers with TARION so that the sale may be completed in compliance with the TARION requirements.
Martin K. I. Rumack is a Toronto based Barrister and Solicitor and is a regular contributor to the Muddy York Blog. Contact Information: 202 – 2 St. Clair Avenue East, Toronto, Ontario, M4T 2T5, Tel: (416) 961-3441 (Ext. 26)