11/13/2022 0 Comments Look at all these monies![]() Tarion’s powers and discretion are set out in the Ontario New Home Warranties Plan Act and it does not give Tarion the authority to compel a vendor to waive conditions agreed to in an Addendum or to complete a project. If the conditions agreed to in the Addendum have not been satisfied despite such reasonable efforts, the vendor is permitted to terminate the purchase agreement and must return to the purchasers all of their deposits. The Addendum to the purchase agreement requires the vendor to take all commercially reasonable steps within its power to satisfy the early termination conditions. Moreover, they must be clearly set out in the Addendum to the purchase agreement, so that consumers are made aware of the risks relating to the conditions when they enter the agreement. Early termination conditions are contractual, and must be agreed to by both parties to the purchase agreement (the vendor and the purchaser). Some examples of conditions include securing the necessary financing, or minimum unit sales for the project to proceed. In a purchase agreement for a new home, the vendor and purchaser may include conditions that, if not satisfied, may result in termination of the purchase agreement. These may include potential early termination conditions such as reaching a minimum sales threshold for the project to proceed, the developer securing necessary financing for construction and completion of the project, and obtaining the required approvals from the municipality. All agreements of purchase and sale will include an information sheet at the front of the purchase agreement that outlines some of the key potential risks of buying a residential condominium unit in a pre-construction standard or phased condo project. Specifically, this requirement applies to any project or phase of a project where the first agreement of purchase and sale is signed after January 1, 2020. So, if on further review they decide that they no longer wish to go through with the purchase, the purchaser can terminate their agreement within that period and get their deposit back.įor projects or phases of project that go to market after January 1, 2020, condo buyers will benefit from more information that will help ensure they can make a more informed purchase. Also keep in mind that purchasers have an initial 10-day period to cancel their purchase under the Condominium Act, 1988. To ensure that purchasers are protected and understand exactly what they are signing up for, they should strongly consider having their agreement carefully reviewed by a lawyer who is experienced in pre-construction condominium transactions. Purchase agreements contain important information about the purchaser’s rights, the builder’s rights, the unit, and the project. For example, the expected sales for the project may not materialize or the development approvals necessary for the project are not forthcoming.įor purchasers who are facing the cancellation of their project, the following information will help in understanding their rights and in making informed decisions. There may be many different reasons for a project cancellation. When purchasing a pre-construction condominium, there is always a risk that the project could be delayed or cancelled. ![]()
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