Hayhoe Homes
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FREQUENTLY ASKED QUESTIONS

Print Frequently Asked Questions

Can a Purchaser reserve a single-family lot?

Yes, to reserve a single-family lot a reservation & FINTRAC form are completed, a deposit is delivered, & photo identification is collected. The length of the reservation varies but is commonly 20 to 60 days.


Does the Builder cooperate with and pay Realtors?

Yes, the Builder cooperates and pays Realtors. A Realtor needs to complete the Builder’s Potential Client Referral Form and submit it to the Builder. The form is available on the Builder’s website.


What is the deposit structure to purchase a Townhome?

A deposit of $20,000 is required to purchase Townhome. This is a onetime deposit and the remainder of the funds owed are paid on the closing date. 


What is the deposit structure to purchase a single-family home?

A deposit of $35,000 is required if the total purchase price is under $500,000 and a deposit of $50,000 is required if the total purchase price is over $500,001. 


Is the deposit refundable?

Deposits given with a reservation and/or a conditional agreement of purchase and sale are refundable. Once an agreement is firm the deposit is nonrefundable.


Are personal cheques accepted for deposit payments?

No, payments to the Builder are made by bank drafts. Bank drafts payable to: Performance Communities Inc.


What is the sales and selections process for a single-family home?

The Sales, Selections, and Closing document outlines these steps. 


Is the HST tax included in the advertised price?

Yes, the advertised prices include the net Harmonized Sales Tax (HST).  The Builder is not responsible to determine if a Purchaser is eligible for the HST rebate. It is the Purchaser’s sole responsibility to work with their lawyer to determine HST rebate eligibility. Purchasers are generally eligible for the HST rebate if they are considered a Canadian resident for income tax purposes the month before and at the beginning of the month in which the Canada Revenue Agency makes a payment. They also need to meet one of the following criteria: at least 19 years old, have (or had) a spouse or common-law partner, are (or were) a parent and live (or lived) with a child.


What is the HST rebate and how does the Purchaser receive the rebate?
  • Prices include the net HST with applicable rebates assigned to the Builder. This means the Builder pays the full 13% HST when items for the house are purchased but the Builder only charges the Purchaser a portion of the HST.   The difference between the full 13% HST and the portion charged to the Purchaser is the rebate. The Purchaser receives the benefit of the rebate at the point of sale and because of this the Purchaser signs a form to say the rebate funds are due to the Builder.  
  • The breakdown of the taxes is shown in the agreement – an example of a $435,000 house is shown below.
  • The figure in the orange box is the price with zero tax.
  • The figures below the orange box (in the white boxes) are the taxes and applicable rebates.
  • The figure in the blue box is the total sale price with net HST. 

 

Subtotal 408,508
   Federal Portion of HST (5 percent) 20,425
   Federal New Housing Rebate if applicable (2,614)
   Provincial Portion of HST (8 percent) 32,681
   Provincial New Housing Rebate if applicable (24,000)
Total Price including Tax - net of New Housing Rebate(s) 435,000

 


How much is the property tax?

The Builder does not determine how much property tax the Purchaser will pay. This question is best answered by the Purchaser’s lawyer. The Municipal Property Assessment Corporation (MPAC) assess the property and determines the value of the property. This value, called the ‘assessed value’, is the number that will be used by the Municipality to determine the property tax. As of March 1, 2020 an approximate property tax rate in the City of St.Thomas and the Town of Tillsonburg is 1.6%. If a property is assessed at $300,000 then the approximate property tax is $300,000 X 1.6% = $4,800.


What other fees or taxes are charged beyond the price of the house, the lot, and the upgrades?

The other fees the Purchaser pays are the Purchaser’s legal fees and the Provincial land transfer tax.


What is land transfer tax and how much land transfer tax will a Purchaser pay?
  • This question is best answered by the Purchaser’s lawyer. The Builder can only offer general guidelines about land transfer tax.     Purchasers of houses and condos in Ontario pay land transfer tax when they purchase a property. The Purchaser’s lawyer will arrange for land transfer taxes to be paid when the deed to the new home is transferred (on closing day). Ontario land transfer taxes are based on a sliding scale and are difficult to calculate.   Commonly land transfer tax on a house that sells for $450,000 is approximately $5,500.  
  • Land transfer and mortgage calculator: www.getwhatyouwant.ca/mortgage-calculators
  • Ontario government website about land transfer tax: www.fin.gov.on.ca/en/bulletins/ltt/2_2005.html 

What is Tarion?

The Builder pays to enroll the Purchaser’s home into the Tarion Warranty Program. Tarion provides new home warranty protection to Purchasers in Ontario. The Ontario government, through the Ministry of Consumer Services, has empowered Tarion to administer and enforce the Ontario New Home Warranties Plan Act.  


Does Builder’s home include a warranty?

Yes, The Purchaser receives substantial warranty protection as set out by the Tarion Warranty Program (in accordance with the Ontario New Home Warranty Act). Under the plan, the Builder warrants that the house will be free of defects in workmanship and materials for a period of one year. There is a two-year warranty with respect to electrical, plumbing, heating systems, cladding, caulking, windows, and doors, and the building envelope (all parts of the structure that contain the living space is free of water penetration). The Builder warrants for two years that the basement remains free of water penetration through the foundation. The Purchaser is protected for seven years against major structural defects with the Tarion Warranty Program. 


What is a PDI?

A PDI is a Pre-Delivery Inspection of the house prior to the closing date. The Purchaser attends the PDI with the Builder’s Service Manager. The Builder will contact the Purchaser to arrange a PDI.


How are the keys to the house delivered?

At the PDI the Purchaser and Service Manager agree on a time the keys will be delivered on the closing date. 


Are development charges included in the price of a Townhome and single-family home?

Yes, the Development charge is included in the price of the Townhome and single-family home.


What is a mortgage?

A mortgage is a type of loan often used to buy a home or other property. A mortgage allows the lender to take possession of the property if you don't repay the loan on time. The property is the security for the loan. Normally, a mortgage is a large loan and is paid off over many years. When a Purchaser gets a mortgage loan, the Purchaser is called the mortgagor. The lender is called the mortgagee. Under a mortgage, the Purchaser is responsible for making regular payments to the lender. The payments cover the interest on the loan plus part of the principal (the amount of the loan). Payments may also include property taxes, insurance and similar charges. 


What is a mortgage calculator?

A mortgage calculator is a tool that asks the Purchaser questions about their financial position and then estimates what size of mortgage the Purchaser might qualify for. Many bank websites have a mortgage calculator and one is also at this website: www.getwhatyouwant.ca/mortgage-calculators 


What is a pre-approval?

Before a Purchaser begins looking at houses they can talk to a financial institution about a pre-approval mortgage. Pre-approval means a mortgage lender sees how much a Purchaser is qualified to borrow and at what interest rate. The pre-approval is commonly used to determine the approximate price range the Purchaser should buy within. 


What is an ‘agreement of purchase and sale’ and ‘closing date’?

The agreement of purchase and sale (also called the ‘agreement’) is the document that states the responsibilities the Purchaser and the Builder each have to complete the transaction. The agreement states the closing date of the transaction. The agreement is signed after the Purchaser has selected the lot, the house, and the upgrades and worked with the Sales Representative on a quotation that shows the price of the house. The closing date is the day the Purchaser pays the Builder and the keys are delivered to the Purchaser.


What is a ‘conditional agreement’?

A conditional agreement states events that must happen prior to the agreement being binding and firm. Typically, an agreement is conditional upon the Purchaser securing financing or the Purchaser’s lawyer reviewing the agreement to ensure the terms in the agreement are accurate.  


How long does it take to build a single-family house?

The length of time to build a house varies depending on the complexity of the house and when building permits are available. Typically, the build time is between 200 & 300 days. The Builder has never missed a closing date. 


What is FINTRAC?

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit. The Centre assists in the detection, prevention and deterrence of money laundering and the financing of illegal activities. FINTRAC's financial intelligence and compliance functions contribute to the safety of Canadians and the protection of the integrity of Canada's financial system. 


Are any of the utilities or features in the house provided on a rental contract?

Yes, the hot water tank is provided on a rental contract. The hot water tank can be purchased. 


Can an assignment clause be in the agreement?

No, the Builder does not permit assignment clauses in the agreement. 


Can Purchasers rent a home from the Builder during the building?

The Builder does own rental properties however they are frequently all rented. Ask to speak to the Builder’s Rental Manager to see if a unit is available to rent during the build time. 


What items are included in the base price of home?

The items included in the base price of the home are listed on the Base Price sheet and are available on the website – located within the information for a specific model.  


Where are the Builder’s Presentation Centres and what are the hours they’re open?

The Presentation Centres are listed on the website along with the contact information. The Presentation Centres are typically open Tuesday to Friday from 12 to 5 p.m. and Saturdays from 12 to 4 p.m. It’s recommended to call ahead to confirm the Presentation Centre is open and / or set an appointment. 


Is a Realtor needed to purchase a new home?

A Realtor is not required to purchase a new home but a lawyer is required. If a Purchaser has a Realtor the Builder pays a commission to the Realtor (the Potential Client Referral Form has to be completed). 


Are appliances included in the price of a single-family home?

As of March 1, 2020, a dishwasher and range hood over the stove is included in the price of a single-family home. Ask a sales representative for clarification. 


Are appliances included in the price of a Townhome?

A dishwasher and Over the Range (OTR) Microwave are included in the price of a Townhome. The Purchaser supplies the washing machine, dryer, stove, and fridge. The Builder does not supply and install these units. 


Can a Purchaser supply items for the Builder to install during the build process?

No, the Builder must supply and install all items in the house during the build process. 


Can a Purchaser work on the house while it’s being built?

No, the Purchaser isn’t allowed to work on the house during the construction process. 


Can a Purchaser purchase just the lot in the subdivision and not the house?

No, the Builder will not sell just the lot. 


What is a Quick Possession Home (QPH)?

A Quick Possession Home is a house that the Builder has selected all the features and finishes for and has begun to build prior to a Purchaser buying the house. A list of available QPHs is shown on the Builder’s website. 


What is the deposit for a Quick Possession Home (QPH)?

A deposit of $35,000 is required if the total purchase price is under $500,000 and a deposit of $50,000 is required if the total purchase price is over $500,001. In some circumstances, typically when the house is finished, the deposit amount is reduced to $10,000. Ask a Sales Representative for details. 


How is the final price of the house calculated?

The final price of the house is compromised of the lot price, house price, upgrades, changes made during the selections process, and typical real estate adjustments (e.g. utilities, property tax, etc). To determine the final price the Purchaser directs their lawyer to contact the Builder’s lawyer. Once this contact between lawyers is established the Builder’s lawyer starts collecting the information needed to determine the final price. The final price takes into account lawyer fees, land transfer fees, property tax adjustments, etc. The process of the Purchaser’s lawyer communicating with the Builder’s lawyer is followed because this ensures both lawyers know all the communication that has taken place in regard to the final price. 


What houses fit on what lots?

The single-family house price list states the width of the house (e.g. 39’ wide). A general principle is add 8’ to the width of the house and that’s the width of lot that’s required for the house. For example: A 39’ wide house needs a 47’ wide lot. Other factors have to be taken into account to determine if a house fits on a lot. For example: Does the house meet the coverage requirements of the lot (only so much of the house can ‘cover’ the lot). The shape of the lot also influences whether or not a house fits on a lot. For example: A ‘pie-shaped’ lot may only be 28’ wide at the very front of the lot but further back on the lot the width of the lot will be very wide and therefore fit many sizes of houses. The sales representative can confirm if the house fits on the lot. 


Can a Purchaser make changes to a Townhome plan?

No, the Builder does not permit any changes to a Townhome plan. 


Can a Purchaser make changes to a single-family plan?

Yes, once a lot is reserved and a deposit is given the Purchaser can work with the sales representative to request some minor changes to the house plan. Not all changes are possible or permitted. 


Does the Builder build custom homes?

Yes, ask a sales representative for the contact information for the person who manages custom homes. 


Does the Builder do renovations?

Yes, ask a sales representative for the contact information for the person who manages renovations. 


What is an easement?

An easement is the right to cross or otherwise use another’s land for a specified purpose. Central to the concept of an easement is that they are a right of use, not ownership. For example, property may have an easement over neighbouring property (such as in the case of a Townhome) to allow access to the backyard. An easement may also protect buried infrastructure which has been installed on a portion of the property (for example a drainage pipe or communication cables). An easement gives legal access to Municipal officials to enter onto the property for the purposes of inspection and/or maintenance. Sheds, pools, decks, fencing or any means of blocking or altering an easement is not permitted.  


What is a swale?

A swale is a sloped parcel of land designed to direct water to a specific area. This prevents puddles or bodies of water from forming on properties. Blocking or altering a swale in any way is not permitted. Every lot has a swale located somewhere on the property. The severity and location of the swale is shown on the master grading and drainage plan for the community. 


What is a Change Order?

If a change is permitted the change is documented on a Change Order and signed by the Builder & Purchaser. 


Why can’t a Purchaser supply items and why is there a detailed selections process?

The Builder’s building process ensures quality standards are met, the requirements of the Ontario Building Code & local building rules are met, the jobsite is safe, and the house is completed by the closing date. To achieve these objectives selections for the house are completed within the timeframe provided and all products are selected at the Builder’s suppliers from the approved list of products. Items supplied by the Builder are under warranty and meet the required safety requirements.  


What is information is required to prepare an agreement of purchase and sale?
  • Purchaser Info: Full legal name, email address, cell phone, current address
  • FINTRAC Info: Date of birth, occupation, government-issued ID with number (e.g. driver’s license).
  • Photocopy ID: Copy of government-issued ID.
  • Lawyer Info: Lawyer’s name, firm name, email, phone, address
  • Lender Info: Company name (e.g. TD Canada Trust), representative’s name, email, phone, address.

 


What is the Homeowners Binder?

After the agreement is firm the Builder provides the Purchaser with a Homeowner Binder that explains the homebuilding process, provides other important information, and provides a place to file documents. 


How are utility accounts created (e.g. natural gas, water, telephone, cable, etc)?

The Purchaser contacts each utility provider and sets up an account. In the Homeowner Binder there is a page that lists out all the utility provider’s along with their contact information.