Let’s be honest: APS clauses don’t get much love. They’re dense, repetitive, and often recycled from project to project. Yet, for developers, those same “boring” paragraphs can become the most expensive sentences you’ll ever sign. A missed definition, a vague occupancy clause, or an inconsistent amendment can open the door to Tarion claims, legal wrangling, and online blowback that lives far longer than your marketing campaign.
This isn’t about teaching developers how to draft law — you have counsel for that. It’s about spotting the clauses most likely to come back with teeth and making sure your process, team, and communications align before they bite.
The Top Clauses That Create Trouble
Statement of Critical Dates
Tarion requires this addendum for condos and freehold agreements.
Missing or unclear firm occupancy dates = automatic compensation triggers.
Inconsistent language between sales copy and APS wording fuels “false promise” complaints.
Change/Amendment Clauses
Broad clauses that allow unilateral changes may be enforceable, but they erode trust.
When builders rely too heavily on these without explanation, homeowners feel duped.
Outside Occupancy Dates
The outside occupancy date gives purchasers termination rights.
If this isn’t managed, delayed projects turn into terminated agreements — and reputational headaches.
Deposit and Closing Conditions
Ambiguity around how deposits are treated (interest, extensions, release conditions) creates fertile ground for disputes.
Where Developers Slip
Templates Without Updates: APS templates from past projects that haven’t been updated to reflect current Tarion or HCRA requirements.
Disconnected Sales Messaging: Marketing says one thing (“move-in Summer 2026!”) while the APS buries outside occupancy in vague terms.
Poor Purchaser Communication: Buyers receive the APS but no plain-language explanation of what it means. Confusion becomes anger, anger becomes escalation.
The Multiplier Effect
One poorly worded clause isn’t just a legal risk. It cascades:
Buyers seek clarification and don’t get it → negative perception.
Sales staff contradict legal language → confusion.
Delay notices hit → buyers claim “bad faith.”
Tarion claim + social media post → reputational damage.
Building a Better APS Playbook
Audit Regularly: Every APS should be reviewed against current Tarion guidelines and recent case precedents.
Align Sales & Legal: Train your sales team on how to explain critical clauses in plain English.
Integrate Communication: Provide buyers with a plain-language “critical dates” summary — branded, professional, reassuring.
Close the Loop: Use purchaser databases to track when and how critical clauses were communicated.
