Buying a brand-new condominium can be both exciting and overwhelming.
It can be exciting because you will be purchasing a home that no one has ever lived in before. You can select your colours, countertops and finishes. Sometimes you can even customize part of the living space to a design that suits your ideal lifestyle.
At the same time, buying a new condo is a complex process that can involve reading and interpreting lengthy and complex documents.
If you have been investigating a new condo purchase, you may be aware of the 10-day cooling off period afforded homebuyers when purchasing new construction condo units.
The ten-day interval begins once you have received all of the required documents. This includes your signed Agreement of Purchase and Sale, the condominium’s disclosure documents, and the Condominium Buyer’s Guide.
The Condo Guide is the latest addition tied to the cooling off period document requirement and was introduced by the province and the Condominium Authority of Ontario (CAO) in January 2021.
Once you have all documents in hand, the clock begins. According to the Condo Buyers’ Guide, a purchaser now has ten days to rescind the purchase agreement for any reason whatsoever. In doing so, a buyer should also be refunded all money deposited without penalty or charge.
What many consumers do not realize is that this cooling-off period may be extended under certain conditions.
One of the documents that a builder must provide to you is the disclosure statement. According to the Condominium Authority of Ontario (CAO), the disclosure statement is a document the that includes important information about your unit and the condo corporation.
If there is a material change in the disclosure statement, then you may be able to cancel your agreement with a builder during an additional 10-day cooling off period. According to the Condo Guide, a material change is simply an important modification that would cause a reasonable buyer to no longer want to proceed with the purchase.
According to the Condominium Authority of Ontario (CAO), seeking legal advice is the best way to ensure you are making an informed decision when it comes to new condo ownership.
If you are not sure who to speak with, your REALTOR® can suggest referrals to a real estate lawyer who can assist you.
Reference: Condominium Authority of Ontario (CAO) (2021). Ontario's Residential Condominium Buyers' Guide.
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