Buyers of pre-construction condominiums will benefit from more information

The following excerpts are taken from Tarion’s Your Home Matters newsletter. For more information, visit tarion.com.

Buyers of units in pre-construction condo projects commenced after January 1, 2020 will benefit from more information to help them make a more informed purchase. Agreements of purchase and sale for units where the first purchase agreement for the project or phase of a project is signed after this date will include an information sheet at the front of the purchase agreement that outlines some of the key potential risks of buying a pre-construction condominium unit. These include potential early termination conditions like reaching a minimum unit sales threshold for the project to proceed, the developer securing necessary financing for construction and completion of the project, and obtaining the required approvals from the municipality. The information sheet will also emphasize the importance of buyers having the purchase agreement reviewed by a lawyer familiar with condominium transactions. Such a review will help purchasers be better informed of the risks of purchasing a new condominium and their rights and obligations. 

If you plan to purchase a new pre-construction condominium, look for this information sheet to be attached to all agreements of purchase and sale signed on or after January 1, 2020.

Click here to view the information sheet.
More information about the information sheet is available here.

Background

Earlier this year, the Ministry of Government and Consumer Services announced new initiatives to enhance consumer protection for buyers of residential condominium units in a pre-construction standard or phased condo project. The initiatives included enhancing disclosure for new home buyers about the potential risks of buying residential condominium units in a pre-construction standard or phased condo project.