Buying a Pre-construction Unit: 6 Important Documents
- Pre-construction Agreement of Purchase and Sale
The agreement of purchase and sale, also known as the purchase agreement, includes important information about the purchaser’s and builder’s rights and obligations, the condominium unit, and the construction project. It is best to review this document with a legal professional.
- Information for Buyers of Pre-Construction Condominium Homes
This document is included in the purchase agreement and contains an outline of the possible risks of buying a condo unit in a pre-construction project, as well as other information such as the estimated occupancy date for your condo unit and the status of construction.
The builder is required to provide you with a complete and signed version of this document that you are then also required to sign.
- The Condominium Home Addendum
This document is also part of the purchase agreement and further clarifies when purchasers should expect their condo unit to be ready for occupancy. The Condominium Home Addendum prevails over the purchase agreement and any other attachments if there is a disagreement or issue with consistency regarding the information contained within these documents.
- Tarion Warranty Information Sheet
This document outlines the warranty information and protections that come with the condo unit you are purchasing, including:
- The pre-delivery inspection
- Deposit Protection
- Delayed Occupancy Coverage
- Construction Performance Guidelines
- Warranty Exclusions
- Common Elements Warranty
- Next steps for buyers
- Information on Tarion
- Disclosure Statement
The disclosure statement contains information about the future condo corporation, including:
- A copy of the existing or proposed declaration, by-laws, and rules for the condominium corporation.
- A summary of the agreements to be entered into by the builder before the turn-over meeting, including agreements for condominium management services and services like repairs and landscaping
- A copy of the budget statement for the first year after registration of the condominium corporation.
It is best to review this document with a legal professional.
- Ontario’s Residential Condominium Buyers’ Guide
Your purchase agreement is not binding until you receive both the disclosure statement and Ontario’s Residential Condominium Buyers’ Guide from the builder. The Guide was developed by the Condo Authority in collaboration with the Ministry of Public and Business Service Delivery and approved by the Minister as a helpful resource for the buyers of residential pre-construction or new condo units.
Under the Condominium Act, purchasers have a 10-day cooling off period in which they may rescind their agreement of purchase and sale. This 10-day period begins on the later of the date on which you receive your agreement of purchase and sale, your disclosure statement, and Ontario’s Residential Condominium Buyers’ Guide. We recommend that you carefully review all documents within this 10-day period.