This section applies to the purchase of new and conversion condominium developments only
After you sign a purchase agreement for a new or conversion condominium unit, you will have to provide the developer with a deposit for the unit. The deposit is held in a trust account by the developer until your unit and the common property is substantially completed. You must receive the title to your property before the deposit money is taken out of the trust fund.
What happens if you change your mind?
After you sign a purchase agreement, you are legally entitled to cancel or rescind the agreement within 10 days, 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 you with a full refund of your deposit within 10 days of receiving your written notice to cancel the purchase agreement. Your deposit will be forfeit if you are not legally entitled to cancel the contract or fail to do so within the 10 day period.
What are occupancy fees?
Before you can move into your unit, the developer must provide an occupancy permit that proves the unit has passed all safety checks and complies with local bylaws. You may receive the occupancy permit and be able to move in before you receive the certificate of title for the unit. This period of time is known as interim occupancy and the developer may require you to pay occupancy fees during this time. It may be helpful to think of occupancy fees as rent that you are paying the developer.
Talk to your lawyer or real estate agent about how the purchase agreement deals with occupancy fees. Sometimes developers will apply occupancy fees towards the final purchase price of the unit.
The Condominium Property Amendment Act will introduce some additional rules regarding how deposits are handled. This website will be updated when the new rules come into force.
Last updated: September 2015