General condo concerns
From The Condo Guide
Ontario New Home Warranties Plan Act (ONHWPA) now administered under the Tarion Warranty Corporation
How does it work? Every builder must, by law, be registered. Check registration numbers and ONHWPA rating. Each home is enrolled after a permit is issued. In a condo situation, both the common elements and the individual units have separate registrations. Make sure all of these are in place before closing. Many homebuyers want to know how much they are covered for under the warranty program. ONHWPA only insures your deposit up to $20,000 plus accrued interest. But, under the Condominium Act (CA), provided the money is paid to the builder’s lawyers in trust, all of your deposit is protected. Your condominium is covered by Tarion from the date you take possession and have completed your Certificate of Completion and Possession (CCP). The common elements are covered only after registration of the Declaration and Description.
Deposits
Most Builders put the name of their lawyer in the Agreement of Purchase and Sale. This makes sense. It lets you know where your money is going, and that it is protected. But this is not always the case! I recently reviewed an Agreement of Purchase and Sale that had no provision for a third party escrow of funds. I believe this is sloppy drafting by the Vendor’s lawyers, and it sure would scare me if I was a Purchaser – particularly if I was giving a deposit in excess of $20,000. Pursuant to sec. 81(1) of the CA, if the deposit is placed with the vendor’s solicitor, it is protected.
Furthermore, a major question is – what about interest? On all condos purchased under the provisions of the CA, interest is payable according to sec. 82(3) from the date it is paid until the unit is available for occupancy. The rate is the government-proscribed rate, which is two per cent below the Bank of Canada rate, which is used for short-term advances to members of the Canadian Payments Association adjusted semi-annually on March 31 and September 30 of each year.
The 10 day “cooling off” period
Sec. 73(2) of the CA now says that you may rescind the Agreement provided you give notice within 10 days of the letter of receipt of the Disclosure statement and the date you receive a copy of the Agreement of Purchase and Sale signed by the Builder.
The Condo Guide Magazine is an excellent source of housing information for those looking for information on new condos in Ontario, Canada. We offer the most up-to-date information on new condominiums across the greater Toronto area.
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Contact the Jeffrey Team for more information - 416-388-1960
