No 10 days with resale buy
Chad writes a column for the local Toronto Metro newspaper called Condo Q & A. The articles previously printed in the Metro News are reprinted below. Read on for great advice and tips on condos, lofts, and townhomes in Toronto!
Q:
I would like to buy a condominium but do not understand how the cooling-off period works. Do I always have 10 days to change my mind when I buy a condo? — Bill B., Toronto
A:
The purchase of a new condominium is very different from the purchase of a resale condominium. Contracts for the purchase of a new condominium can be extremely complicated, and it is wise to have a Realtor and a lawyer help you with the process. By law, you are allowed 10 days from the date you receive a “disclosure statement” from the developer within which you have the right to review its contents and, if you change your mind, rescind it and get your deposits back.When you buy a resale condo, there is no cooling-off period, but there is usually a condition on financing and a condition on the status certificate. The status certificate is reviewed by a lawyer to ensure the condominium corporation is in good standing and that there is an adequate reserve fund. The reserve fund is for major repairs and replacement of the common elements and assets of the corporation, therefore it is important that there is a fairly robust reserve fund in place. In both cases, if for any reason a purchaser or their lawyer is not satisfied with what they have learned from the status certificate or the disclosure statement; all deposits must be returned to them without penalty or deduction.
