Upcoming Amendments to the Condominium Act
The Ministry of Government and Consumer Services has confirmed that new amendments to the Condominium Act, 1998 will come into force on January 1, 2021.
These amendments (to sections 1(1), 71.1, 72(1), 72(2), 73(1), 73(2), and 161(1)) will introduce requirements related to the preparation of a condominium guide (“Condo Guide”) and the required delivery of the Condo Guide by Developers to purchasers of pre-construction / new residential condominiums with a “Condo Guide”.
According to the announcement, the Condominium Authority of Ontario (“CAO”) will be charged with preparing a Condo Guide that sets out certain information related to condo purchasing, condo ownership (including rights and obligations of owners, occupiers, and the condo board), and other information that the Minister considers appropriate. It is anticipated that the Condo Guide will be available in late fall 2020 in order to afford stakeholders (including developers) an opportunity to review the guide and ensure that it is ready to be provided to purchasers as of January 1, 2021.
The hope is that the Condo Guide will cover a wide range of topics (common expenses, board governance, etc.) and will be of interest to anyone that buys, owns or lives in a condominium. However, it will only be required to be provided to purchasers of new/ pre-construction residential condominiums.
Similar to the requirement of the provision of a disclosure statement by a Developer, an agreement of purchase and sale entered into by a developer (or a person acting on behalf of the Developer) is not binding on the purchaser until the condo guide (and the Disclosure Statement) has been delivered. The changes also confirm certain circumstances in which a purchaser can rescind the agreement of purchase and sale.
If you have any question on the amendments discusses above, general inquires on the proposed Condo Guide and its preparation, can be directed to the CAO.
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