The Ontario government is seeking input on proposed additional disclosure requirements from builders with the purchase agreements for new condominium units. That’s happening as part of a more extensive consultation on proposed new protections for the purchasers of freehold homes.

A regulation under the provincial New Home Construction Licensing Act currently prescribes that prospective purchasers of new condo units be provided with an information sheet that clearly states key information and potential risks related to the purchase. Builders are additionally required to make a commitment to transfer the title of the unit to the buyer. This information sheet must be incorporated into the purchase agreement.

It’s now proposed that builders be required to confirm that they own the land or otherwise have the power to transfer it to the purchaser. Builders would also have to demonstrate that there are no restrictions on the title that could prevent project completion or the sale of the unit to the buyer or, failing that, provide an explanation of how they will remove any existing restrictions.

As well, the provincial government proposes to produce information sheets in both French and English so they be made available in the most appropriate language for prospective purchasers. The public can comment on the proposals until September 16, 2024.