New Obligation for Condominium Developers Coming Into Force on January 1, 2021
Upcoming changes to the Condominium Act, 1998 will come into force on January 1, 2021 that will add an additional document which must be delivered by developers to purchasers of condominium units. An electronic or paper copy of Ontario’s Residential Condominium Buyers’ Guide (Condo Guide) must be provided to all pre-construction or new condominium unit purchasers starting January 1, 2021.
This obligation is significant for developers because the 10-day rescission period will begin only after the purchaser receives the Condo Guide, the package of condominium disclosure documents and a fully executed copy of the agreement of purchase and sale.
Please note that this new requirement will apply to unit sales that take place on or after January 1, 2021 regardless of whether the unit is part of an existing project that was launched prior to this date (no grandfathering of existing projects). Sales prior to this date, whether in the rescission period or not, will not be affected.
The Aird & Berlis Real Estate Group will continue to monitor new developments in real estate law. For further information, please contact a member of our Group.