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 (in the prescribed form)
- If the condominium unit and/or common property are not substantially completed, the agreement must include a description, drawing, or photograph showing:
- the interior finishing and all major improvements to the common property in the building and to the corporation’s property (real and personal);
- the exterior finishing of the building;
- recreational facilities, equipment and other amenities;
- maintenance equipment for the common property, managed property and the corporation’s property (real and personal);
- location of roadways, walkways, fences, parking areas and recreational facilities; and
- any significant utility installations, major easement areas and retaining walls
- The amount or estimated amount of monthly condo contributions (condo fees) for the unit based on the budget or proposed budget.
- 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 the required documents from the developer when you signed the agreement, then you have an additional 10 days within receiving the documents to cancel your agreement. The developer must provide a full refund within 15 days of receiving your written notice to cancel the purchase agreement. To learn more about the documents that developers must provide to buyers, see our Collecting & Reviewing Documents page.
Last updated: April 2018