In Ontario, a buyer's final walk-through the day before closing reveals substantial storm damage to the house that occurred after the home inspection. The deal uses the standard OREA Agreement of Purchase and Sale. What are the buyer's options under its insurance clause?
Correct Answer
D) Terminate and recover the deposit, or close and take the insurance proceeds
The insurance clause of the standard OREA Agreement of Purchase and Sale keeps the buildings at the seller's risk until completion. If there is substantial damage, the buyer may either terminate the agreement and have all money paid returned, or take the proceeds of the seller's insurance and complete the purchase. Any other arrangement, such as a delay or price reduction, needs both parties to agree.
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- → A buyer's lawyer requests a status certificate and pays the fee on May 1. The corporation never delivers it. After closing, the corporation claims the seller owed $3,000 in common expense arrears and demands it from the buyer, who relied on the silence. What is the effect under s. 76 of the Condominium Act, 1998?
- → A status certificate delivered to a buyer omits a $4,000 special assessment that the board levied against the unit after the current budget date to increase the reserve fund. The buyer relied on the certificate and closed. Under the Condominium Act, 1998, what is the result?
- → A seller's salesperson is estimating the buyer's costs of reviewing an Ontario condominium unit's status certificate. What is the most the corporation may charge for providing the certificate?
- → A listing salesperson expects offers next week on a resale condominium unit and knows buyers will want the status certificate. By when must the corporation give a status certificate once it is requested?
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- → A buyer's status certificate shows that the corporation received a new reserve fund study two months ago, and the board has not yet sent owners anything about it. What does the Condominium Act, 1998 require of the board?
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