Buying, Selling, and Renting Condo Units

Pre-construction condo projects can sometimes be cancelled even after you have made a deposit on your purchase. In most cases buyers are entitled to get their deposit and any accrued interest back if a condo project is cancelled. The Condominium Home Addendum is part of your purchasing agreement and sets out any conditions that may result in the condo not proceeding and the potential termination of the purchase agreement.

CAO’s Condo Buyers’ Guide is a useful resource for those in the market to purchase a condo unit. Pre-construction deposits may be covered up to a certain amount by Tarion Warranty Corporation. Buyers who have a complaint against a developer should reach out to the Home Construction Regulatory Authority.

In most cases buyers are entitled to get their deposit and any accrued interest back if a condo project is cancelled. Generally, funds received by the builder of a condo project must be held in trust. This includes deposits and certain other payments covered by the purchase agreement. Pre-construction deposits may be covered up to a certain amount by Tarion Warranty Corporation. Buyers who have a complaint against a developer should reach out to the Home Construction Regulatory Authority.

The disclosure statement is one of many important documents that pre-construction buyers receive. Buyers of pre-construction condos have a 10-day cooling off period that begins when they receive all six of these documents.

The disclosure statement contains information about the future condo corporation, including:

• A copy of the existing or proposed declaration, by-laws, and rules 
• A summary of the agreements to be entered into by the builder before the turn-over meeting, including agreements for condo management services and services like repairs and landscaping
• A copy of the budget statement for the first year after registration of the condo corporation

Seek help from a legal professional if you have questions about the information contained in these documents.

Status certificates are important documents containing key information about a re-sale condo unit and its corporation that help buyers make informed decisions. Buyers should review these with their legal counsel. Anyone can request a status certificate and corporations can charge up to $100, including applicable taxes, to provide them within 10 days.