Can You Get Out of Your Pre-Construction Agreement?
In Ontario, a purchaser of a pre-construction condominium property may have the right to terminate the purchase agreement before the final closing date under certain circumstances. This can occur if the purchaser is not satisfied with the condominium or if the developer has breached the purchase agreement.
Under the Ontario Condominium Act, a developer is required to provide a disclosure statement to the purchaser before the purchaser is required to make a final decision on whether to purchase the condominium. The disclosure statement must contain information about the condominium, including the unit's size, features, and amenities, as well as any material changes to the condominium since the initial agreement was signed.
If the developer fails to provide the required disclosure statement or if the disclosure statement contains false or misleading information, the purchaser may have the right to terminate the purchase agreement. The purchaser must provide written notice to the developer within a certain timeframe (typically 10 days) in order to exercise this right.
In addition, if the developer fails to meet any of the other terms of the purchase agreement, the purchaser may also have the right to terminate the agreement. This could include the developer's failure to complete the condominium by the agreed upon closing date, or the developer's failure to meet any other obligations set out in the agreement. In these cases, the purchaser must also provide written notice to the developer within a certain timeframe in order to terminate the agreement.
If the purchaser successfully terminates the purchase agreement, he or she may be entitled to a refund of any deposits or other payments made to the developer. However, the purchaser may also be required to pay damages to the developer if the termination was not justified. It is important for the purchaser to seek legal advice before attempting to terminate a pre-construction condominium purchase agreement in order to understand their rights and obligations under the agreement and Ontario law.