First, you should remember that you have a 10-day cooling off period after receiving the disclosure package to cancel the deal if you change your mind. Here is the information you need to know as you make your decision:
A condominium as a corporation is formed when a declaration and description are registered at the Land Registry office of the jurisdiction in which the condominium is situated.
Description: Includes a detailed plan of layout and location of the development, surveys of land, location of the buildings, architectural plan of buildings and specifies boundaries of each unit.
Declaration: This is the founding document that details what constitutes common element vs. what constitutes each unit, establishes the percentage of ownership for each unit and the percentage each unit has to contribute to the common expense fees. This document is often referred to as the “constitution” of the corporation.
When selling a unit, the developer must provide the purchaser with a disclosure statement, which must have a table of contents and contain specific information concerning the unit and project including:
- General description of the property (see above).
- The number of units the developer intends to lease.
- The estimated completion date for the construction of amenities.
- A copy of the proposed declaration and by-laws.
This table of contents helps purchasers find information quickly and easily in the declaration (see definition above), by-laws, rules or disclosure statement about such things as whether a building on the property has been converted from a previous use or whether the building has any restrictions on pets. Purchasers are encouraged to review the purchase agreement and the disclosure document carefully with an experienced condominium lawyer before the end of the 10-day cancellation period.
Purchasers will want to look closely at the types of facilities and services that are offered. The Ontario Human Rights Commission has ruled that adult-only buildings discriminate against families. However, some condos do aim to meet the specialized needs of families with small children, for example, by providing playgrounds. Others may be built with seniors in mind.
