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FAQs

What must a developer do before it can enter into an Agreement of Purchase and Sale with a Buyer in a proposed condominium development?

Buyers purchasing new condominium units from a developer must be given a Disclosure Statement. This is a package of documents that a developer prepares and gives to Buyers when they sign the Agreement of Purchase and Sale. The Act provides a Buyer with a 10-day cooling off period to review and be satisfied with these documents. Once the cooling-off period has expired, the Buyer is bound by the terms of the contract. The Disclosure Statement contains a narrative description of the condominium project’s most important features. It will include a table of contents, copies of the proposed declaration, bylaws and rules, and other information that the Act requires. The Disclosure Statement will also include the proposed budget, common expense amounts, proportionate shares upon which common expenses are calculated, the condominium plans, property management agreements, and any insurance trust agreements, The Disclosure Statement is lengthy and comprehensive. Buyers should consult an experienced condominium lawyer for assistance in reviewing the Disclosure Statement and should not rely upon verbal assurances made by sales representatives.

© 2015 Lawrence, Lawrence, Stevenson LLP

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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