Real Estate Law

Can I cancel my purchase & sale agreement for a newly built condo?

Yes. Within 10 days after you receive a signed copy of purchase and sale agreement you may cancel the Offer (this is called a “cooling off period”) and receive a refund of your deposit from the builder. There are other circumstances where you may be able to get out of the deal at a later date, such as if there are material changes to the building or Unit you are unwilling to accept.

Before you sign the Purchase and Sale Agreement (“APS”) it is highly recommended to go over it with us in order to understand your rights and obligations.

Should I receive a warranty for a newly built condo?

Under the Ontario New Home Warranties Plan Act, all builders must provide you with a Tarion warranty. In addition to deposit protection and delayed closing compensation, the warranty can extend for one, two and seven years depending on the items covered. For a list of what is covered see: https://www.tarion.com/homeowners/your-warranty-coverage/outline-your-warranty.

What is the process of closing a new condo from a builder?

When purchasing a new condo from the builder, the closing is usually divided into two stages:

1. Interim Occupancy Closing: Once the builder obtains an occupancy certificate from the local municipality and the Unit is substantially completed, you will be required to take occupancy and begin paying occupancy fees. You will need to come into our office to sign required documentation, provide proof of insurance and pay any remaining deposits agreed to in the APS. Some builders now require you to provide proof that you have a mortgage commitment in place or have the cash to complete the transaction on the final closing date. At this point you will not actually own your Unit; you only have the right to occupancy it until the final closing date.
2. Final Closing (also referred to as the Unit Transfer Date): Once the condominium plan gets registered with the government, you will receive a final closing notice from the builder with a firm closing date which you should immediately forward to us. At this point, you should advise your bank of the closing date so they can provide mortgage instructions to us as soon as possible before the closing date. On final closing title to the Unit will be transferred to you and you will receive a transfer document with a registration number which will show your ownership.

What should I know when buying resale or preowned condo?

Buying a pre-owned condo differs from purchasing a newly built condo. For a resale condo, you can make the APS conditional upon financing, inspection, or solicitor’s review of the status certificate, condo declaration and bylaws, and reserve fund study which are issued by the condominium corporation. These documents will reveal if the corporation is managed properly and financially secure. We would glad to review these for you.

What is a Status Certificate, and do I need it for condo purchase?

A Status Certificate gives a snapshot of the current status of a condominium corporation and the Unit confirming the legal name of the corporation, ownership of the Unit, parking space(s) and lockers so this can be compared with what the vendor is purporting to sell in the APS. Generally, most APS’s are conditional for a period of about 10 days to allow you to obtain and review the certificate. It confirms whether the condo corporation has sufficient funds to meet its budget and the reserve fund is adequate. It reveals if the condominium corporation is named in any legal proceeding or if there are any circumstances now or in the future that may result in a special assessment or increase in maintenance fees.

You should review the Status Certificate with a real estate lawyer to help you decide whether there are issues with the Unit or condo corporation you should know about before you firm up your deal.

Do I need my own lawyer?

Yes, The Law Society of Ontario (formerly the Law Society of Upper Canada) requires the vendor and the purchaser in most cases to have their own separate legal representation.