Condominium Disclosure Requirements

Pursuant to the Condominium Act, 1998, SO 1998, c 19, the Condominium Authority of Ontario publishes a Condo Buyer’s Guide for potential buyers of a residential pre-construction or re-sale condo unit.

The Condominium Act requires the declarant (often the developer) of a condominium  to provide a detailed disclosure statement to potential buyers of units. The disclosure statement must include details such as:

• a description of the property, the units, and recreational or other amenities;
• information about the New Home Warranty Plan;
• a construction schedule, if the condominium is not complete;
• a copy of the proposed or existing condominium by-laws; and
• a copy of the condominium corporation’s budget statement.

A prospective purchaser is not bound by an agreement of purchase of sale until the purchaser receives a copy of the current disclosure statement and condominium guide.

The Condominium Act also includes a 10 day cooling off period. A potential buyer can rescind an agreement to purchase a condo unit within 10 days after it receives the last of the disclosure statement, condominium guide, and executed agreement of purchase and sale.