Last year, the Ontario government tabled the Rebuilding Consumer Confidence Act, which aims to strengthen consumer protection and ensure stronger oversight of several administrative authorities, including the Condominium Authority of Ontario (CAO). One piece of legislation related to the condo guide is now expected to roll out on January 1, 2021.

Once in force, the changes require the CAO to develop a plain language condo guide for buyers and require developers to provide it at the point of purchase, along with the currently required disclosure statement.

Other changes to the Condo Act will ensure that any agreement of purchase and sale entered into by a developer (or a person acting on behalf of or for the benefit of the developer) is not binding on the purchaser until the developer has delivered a copy of the guide and disclosure statement. Amendments will also allow a buyer who receives a copy of the guide from the developer to revoke the purchase and sale agreement before accepting a deed to the unit in certain instances.

The condo guide is expected to become available by late fall 2020 to give stakeholders, including condo developers, time to familiarize themselves with it and the related requirements.

The proposed guide is expected to better equip potential purchasers of residential condos with information on condo ownership and on the condo purchase process to assist their understanding of the risks involved in buying pre-construction condos. The guide will cover a wide range of topics relevant to purchasing and owning property in a condo, such as common expense fees and board governance. However, developers would be required, under the Condo Act, to provide it only to purchasers of residential pre-construction/new condos.