What happens if my new condo delivery is delayed? Penalties and recourse.

Hey everyone,

So, I just closed on a condo and I’ve got a bit of a situation on my mind...
I haven't actually moved in yet, but I was looking over my preliminary purchase agreement and this part caught my eye:

Article 8:
The projected completion date for the building and the handover of the unit is December 31, 2010.

Article 9:
Both parties agree that the seller won't be held liable for missing the deadline in Article 8 if any of these things happen:
- Acts of God/Force Majeure
- Delays in expanding the primary or secondary utility grids, provided it's not the seller's fault.
- Any actions or mandates from government agencies or local authorities that mess with the planned construction schedule.

If one of those situations pops up, the seller promises to let the buyer know what the new completion date will be.

However, the seller also agrees that if they are at fault for a delay in delivering the unit, they'll pay the buyer an amount equal to the average local monthly rent—which we're setting right here in this contract at $220 per month—for every 30 days the delivery is late.

So, here's the deal... the whole building still isn't finished (they're still working on the 5th floor), even though my specific unit on the 2nd floor was actually completed about three weeks ago.
My question is, do I actually have the right to go after them for those penalties ($220 for every month they're late handing it over)? Or is there some kind of loophole where they might not have to pay me despite what the contract says?

THANKS!

Well, you pretty much answered your own question right there... if they're running late because of their own screw-up, then yeah, they owe penalties, but otherwise, no way...

crimsonsailor7 said:Well, you pretty much answered your own question right there... if they're running late because of their own screw-up, then yeah, they owe penalties, but otherwise, no way...

Yeah, I totally get what you're saying, that whole "if it's their fault" part.
..and I guess I should probably apologize in advance if this makes me sound a bit slow, but is there any chance that when it finally comes time to hand over the keys to the house, the seller might just try to wiggle out of it? Like, maybe they'll claim the delay wasn't actually their doing, but was caused by one of those other things we talked about that would let them off the hook entirely??

Of course it exists. It’s just like having an option to pay out those penalties... Just because something is laid out in black and white doesn't mean it actually happens in the real world, it just gives you a bit more legal breathing room when things get messy.

First off, thanks so much for getting back to me so quickly

I was also wondering about one other thing... I mean, is there any way for me to find out exactly when the application for the building's condo conversion was actually filed
because if they just submitted it recently, that would basically mean the whole building wasn't even finished by that date
???
thanks