When choosing between a new condo from a developer and a resale condo, several pivotal differences come into play:
- Cancellation Privilege: New condo buyers in Ontario benefit from a 10-day window post-agreement to reassess their decision, review documents, and seek legal counsel. This safeguard is absent for resale condo transactions.
- Disclosure Details:
- New Condos: Buyers receive a comprehensive disclosure statement from the developer. This package details property specifics, pet regulations, budget breakdowns, the builder’s leasing intentions, and amenity completion timelines.
- Resale Condos: Buyers must request and obtain a status certificate from the condo corporation, which offers insights similar to the disclosure statement, including unit definitions, common element descriptions, and condo operation by-laws.
- Guidance Materials: New condo buyers receive an informative guide from the Condominium Authority of Ontario detailing condo governance and owner obligations. Additionally, new condo purchase agreements now mandate a Condo Information Sheet acknowledgment.
- Warranty Protections:
- New Condos: The Ontario New Home Warranties Plan safeguards newly constructed condos, administered by Tarion under the Ministry of Government and Consumer Services.
- Converted Properties: Converted condos now fall under this protection, albeit with some exclusions for pre-existing elements’ conditions. Key warranty aspects include:
- Deposit Security: Coverage up to $20,000 safeguards against builder insolvency.
- Occupancy Delays: Compensation provisions exist if occupancy timelines are breached.
- Structural and Material Defects: Warranty spans one to seven years, covering various defects and structural issues.
In essence, while both new and resale condos offer unique advantages, understanding these distinctions ensures informed decision-making tailored to individual preferences and priorities.