A buyer signs an agreement of purchase and sale for a proposed unit with a declarant, but the declarant has not yet delivered the disclosure statement or the condominium guide. What is the legal status of the agreement?
Correct Answer
A) It does not bind the buyer until both documents are delivered
Section 72(2) of the Condominium Act, 1998 says an agreement of purchase and sale with a declarant is not binding on the purchaser until the declarant delivers a copy of the current disclosure statement and the condominium guide. The 10-day rescission period in s. 73 then runs from the latest of the deliveries.
Why This Is the Correct Answer
Section 72(2) makes the agreement non-binding on the purchaser until both documents are delivered.
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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?
- → An investor buyer wants to know how many units in a condominium building were rented last year before making an offer. Which document must state the number of units for which the corporation received lease notices during the preceding fiscal year?
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- → A buyer reviewing a status certificate asks what the condominium's reserve fund may be spent on. Under the Condominium Act, 1998, what is the permitted purpose?
- → An established Ontario condominium corporation completed its most recent reserve fund study in 2024. Under O. Reg. 48/01, when must it complete its next reserve fund study?
- → 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?
- → The seller of a condominium unit got board approval and signed a registered s. 98 agreement with the corporation to install a hot tub on her exclusive-use terrace, taking on its repair and insurance costs. How does that agreement affect the buyer?
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A buyer signs an agreement in March 2026 to buy a new freehold home from a builder for $850,000 and pays $120,000 in deposits. The builder then goes bankrupt and the sale never closes. Under Regulation 892 made under the Ontario New Home Warranties Plan Act, what is the most Tarion can pay on her deposit claim?
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A buyer signs an agreement to buy a pre-construction condominium unit from the declarant on March 3 and receives the disclosure statement and condominium guide that day. She receives her copy of the agreement signed by both parties on March 8. Under s. 73 of the Condominium Act, 1998, by what date must the declarant receive her notice of rescission?