THE 10-DAY COOLING-OFF PERIOD

Suppose after you’ve signed the Agreement of Purchase and sale for a newly built condo, you then have a change of heart… what options do you have?

The Condominium Act protects buyers of new condos. It gives the purchaser 10 days to rescind on a concluded agreement to purchase a new condo. (This does not apply to resale units.)

However your option to “back out” isn’t carte blanche – there are criteria. The rescission must take place before you accept the deed or transfer of title to the unit. The 10-day period starts on the date you receive the developer’s Disclosure Statement or the date that you receive a copy of  the signed Agreement of Purchase and Sale, whichever is later. The purchaser must give written notice to the vendor of his intention to rescind within this 10-day period.

What if you have a change of heart after the 10-day period? The Act also allows for rescission if there has been a material change to the project, or where there is material change to the information in the Disclosure Statement.

The Developer has an obligation to give all purchasers notice of a change to the project…in the appropriate legal manner. Purchasers must receive said notice within a reasonable time after the change occurs, not later than 10 days before the deed is delivered.

In these scenarios, the purchaser has the right to rescind within 10 days of the later of: (1) the date he received the revised Disclosure Statement that reflected the change (or received notice from the developer); and (2) the date on which he became aware of the change. To trigger your right to rescind the change must be “material” in nature – a change that a reasonable buyer would objectively regard as being sufficiently important to affect the buying decision.

CONDO FEE BASICS

Condo fees are typically calculated from the operating annual cost of the condominium and divided by the percentage of your contribution to the common elements (your unit factor), as outlined in the condominium’s governing documents.

Your condo fees generally include:

• Day-to-day care and upkeep of the common property elements (e.g, snow removal, landscaping, cleaning pf common elements including carpets and exterior windows, heating/cooling system maintenance)

•Contributions to the reserve  fund, which is used to pay for major repairs to (and replacement of) common building systems to ensure the condominium is kept in good repair over the life of the building.

•Property management fees.

•Building repair and maintenance.

•Salaries of condominium employees (e.g., superintendent, security guards, concierge)

•Amenities (e.g., use of pool, recreational facilities, party room)

To determine exactly what is included in a specific condominium’s common element fees, you need to review the corporation’s status certificate.

If the Board overestimates the common expenses, the surplus is wholly applied either to future common expenses or is paid into the reserve fund. Refunds are not given to unit owners. If a unit owner sells a unit before the end of the condominium’s fiscal year, the owner cannot obtain a refund for common expenses but may add it to the unit’s purchase price.