Buyers of condominiums in Ontario will gain greater protection after the announcement of new requirements by the province’s homeowner’s warranty provider.
Tarion says the new measures will help educate and inform potential homebuyers and will include new search tools in the Tarion Ontario Builders Directory and a new specific information sheet that highlights the potential risks of buying certain types of housing. condos prior to construction.
“The purchase of a new house is often the most important of many people in Ontario,” said Tarion president and CEO Howard Bogach. “At Tarion, we are doing our part to determine that these purchases are guided by a deep understanding of the risks, the builder’s history and the status of the given project. The initiatives we announce today will contribute to a better informed buying process.”
The new mandatory disclosures will be effective as of January 1, 2020 and may identify buyers who may know of several key risk factors, including:
- pre-construction condos carry the risk of never being completed;
- early termination conditions that would allow a permit to cancel a project;
- information on the status of development (for example, formal zoning approval, corresponding approval authority and construction start date);
- information about any restriction in the title of the processor that can prevent the project from moving forward;
- A buyer has an initial 10 days under the 1998 Condos Act to cancel a sales agreement; and
- the expected date on which a buyer can take occupation.
The new information sheet will be required for all unit purchase and sale agreements where the purchase agreement for the project or the project phase is signed after January 1, 2020.
However, leaseholds, common elements and vacant land condos are excluded from the limit.
source: Canadian Real Estate Magazine