Purchasers of pre-construction condominium units in projects commenced after January 1, 2020 will benefit from more information that will 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. These include potential early termination conditions like securing satisfactory financing and minimum unit sales for the project to proceed, and 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 unit in a pre-construction condominium and their rights and obligations.
More information about the mandatory information sheet is available here.
On February 20, 2019, the Ministry of Government and Consumer Services announced new initiatives to enhance consumer protection for purchasers of residential condominium units in a pre-construction standard or phased condo project. The initiatives included enhancing disclosure for consumers about the potential risks of buying a residential condominium unit in a pre-construction standard or phased condo project.