New Developments
Buyer Protection
Buyer Protection
- When you purchase a newly-built condominium, you have 10 day cooling off period, which allows you to cancel your purchase. The 10 days starts when you receive a copy of the fully signed purchase and sale agreement or the disclosure statement.
- If any “material change” happens to the disclosure statement, you also will have a 10 day cooling off period where you can cancel your agreement.
- Should you chose to cancel your agreement, the builder/developer must refund any deposits plus any interest that is payable.
- If you make a deposit, the builder/developer must deposit the monies into a trust account.
- A builder/developer cannot terminate a purchase and sale agreement without the Buyers consent or a court order.
- Newly-built condominium units are covered by the Ontario New Homes Warranties Plan Act. This is overseen by Tarion Warranty Corporation.
Builder Requirements
Builder / Developers Requirements Developers must:
- Take all reasonable steps to finish the condominium project on time. You have the right to compensation if your condominium closing is arbitrarily deferred.
- Register the legal documents that are needed to set up the condominium corporation without delay.
Builder Disclosure
The Builder / Developer must also provide you with a disclosure statement that includes:
- A basic description of the property.
- The number of condominium units the builder intends to maintain ownership of.
- The estimated start date and end date for all construction including amenities.
- The condominium corporation’s current budget. This means the builder / developer must release an estimate of revenue and expenses for the first operating year. The budget should also show you the expected costs of staff, maintenance and utilities.
- The condominium Declaration. This is a document that has the rules of the condominium and sets out the definition of the units and common areas. It also shows the percentage of ownership each unit has and what each units monthly fees are.
- Condo By-laws, rules and restrictions. This will include such things as the size or number of pets allowed, restrictions of the window coverings and/or if you will requ
Condo Fee Increases
The Builder / Developer must also provide you with a disclosure statement that includes:
Buyers of newly-built condominiums should be made aware that the condominium fee may have a significant increase that can occur in the second, third and fourth year of ownership.
To give an example, there are fees of course to cover the cost of certain amenities, such as a guest suite that a corporation may have to buy as an asset, and this might not be exercised until the second year. It is best to find out if there will are any deferred costs and make sure that you budget for a possible increase in the monthly fees.
While the Builder / Developer gives an estimated monthly cost in the disclosure statement, it isn’t until the board of directors takes over that the first reserve fund study is done and then you can see the actual costs of running and maintaining the building / complex.Condo Insurance
Condo Insurance
As an owner it is a good idea to have an understanding of how a corporation’s insurance coverage works because the cost of damage and repairs could be