Ontario condo developers face new disclosure rules

November 01, 2019

Tarion, the regulator of new home builders in Ontario and administrator of the new home warranty program, will bring in new disclosure rules for condominium developers in January.
Effective January 1, 2020, marketing of new condos will require mandatory purchase agreements that include information sheets highlighting purchase risks and considerations such as:

• status of the development (e.g., formal zoning approval, relevant approval authority and date of commencement of construction);
• restrictions on the developer’s land title that may prevent the project from going forward; 
• early termination conditions that would allow a developer to cancel a project;
• purchaser’s right to cancel a sales agreement after an initial 10 days under the Condominium Act, 1998; and
• the expected date when a purchaser can take occupancy.

This new information sheet applies to agreements of purchase and sale for units where the purchase agreement for the project or phase of the project is signed after January 1, 2020.