A purchase agreement is the contract between the developer and the condominium unit purchaser. You should always consult with a lawyer prior to signing a purchase agreement.
Requirements for Purchase Agreements
Under the Condominium Property Act, a developer is legally required to include the following information in the purchase agreement:
- How to cancel the purchase agreement (information must be included on the outside cover or front page of the agreement)
- If the condominium unit and/or common property are not substantially completed, the agreement must include a description, drawing, or photograph showing:
- the exterior and interior finishing of the building(s);
- all major improvements to the common property;
- recreational facilities and other amenities;
- maintenance equipment for the common property;
- location of parking areas, roads, sidewalks, and recreational facilities; and
- any significant utility installations.
- The amount or estimated amount of monthly condo contributions (condo fees) for the unit.
- The unit factor and how it was determined.
You should review the purchase agreement to ensure it outlines what work remains to be done and when the developer expects the unit will be completed.
Cancelling a Purchase Agreement
Under the Condominium Property Act, you can cancel or rescind the purchase agreement within 10 days of signing it, if you did not receive all of the required documents from the developer at least 10 days prior to signing the agreement. The developer must provide a full refund within 10 days of receiving your written notice to cancel the purchase agreement.
The developer is required to provide the following documents at least 10 days prior to the signing of the purchase agreement:
- purchase agreement;
- condominium plan (or proposed plan);
- bylaws (or proposed bylaws);
- management agreement (or proposed agreement);
- recreational agreement (or proposed agreement);
- the lease, if the land on which the unit is located is leased;
- any mortgage that may affect the title of the unit;
- phased development disclosure statement (if applicable); and
- if the condo development is a conversion, the reserve fund report and plan.
The Condominium Property Amendment Act will change the requirements for purchase agreements as well as the rules around cancelling them. This website will be updated when the new rules come into force.
Last updated: September 2015