NEW LEGISLATION FOR BUILDERS OF PRE CONSTRUCTION CONDOMINIUMS!
Wednesday Jan 06th, 2021
As of January 1, 2021, developers across Ontario must provide purchasers of new and pre-construction residential condos with a copy of the guide and the current disclosure statement.
Under the Condo Act, purchase agreements for new or pre-construction condos purchased from developers are not binding on purchasers until developers provide purchasers with a copy of the current disclosure statement containing vital information about the future or existing condo property and corporation (e.g., corporation's first-year budget, the proposed or actual declaration, by-laws, and rules).
As of January 1, 2021, in addition to the disclosure statement, developers must also provide a copy of Ontario’s Residential Condominium Buyers’ Guide (the applicable condominium guide) to the purchasers of new or pre-construction residential condos. The Guide was developed by the Condominium Authority of Ontario (CAO) and approved by the Minister of Government and Consumer Services. It includes up-to-date information on a variety of aspects of condo ownership, such as:
- The condo purchasing process
- Moving into a pre-construction residential condo unit
- Condo living and governance
- Resources for resolving issues with condo living
The Condo Act provides a buyer with a cooling-off period of 10 days to consider whether you want to proceed with the purchase. This 10-day period begins on the later of the date on which the purchaser receives the executed agreement of purchase and sale, the disclosure documents, and Condo Guide.
Additionally, the Condo Act provides a further rescission right where there is a material change in the disclosure statement. If there is a material change (i.e. an important change that would have caused a reasonable buyer to no longer want to proceed with the purchase, had that information been included in the disclosure received by the purchaser), then the purchaser may be able to rescind or cancel the purchase agreement during an additional 10-day cooling-off period. The additional 10-day cooling-off period starts from the later of:
- the date that the declarant has delivered a revised disclosure statement or a notice to you confirming the material change;
- the date that you otherwise become aware of the material change; or
- the date that the Ontario Superior Court of Justice has determined that a material change has occurred.
source: Times Realty Group Inc. Brokerage