Condominium Purchases and Sales
June 27th, 2023 by Bryan Peters
Condominium laws were changed in 2015 that apply to both new and existing condominium corporations and purchases of condominium units. The laws are fairly complex so buyers and sellers should seek legal advice when taking the important step of selling or purchasing a condominium unit.
When making an offer to purchase a condominium, buyers are entitled to disclosure. Upon receiving the disclosure as may be required, including disclosure certificates from the sellers and the condominium corporation, the buyer has the right to cancel the offer to purchase within 7 days (the “cooling off” period).
At times changes may arise which affect the condominium being purchased. If such changes arise between the time the buyer makes the offer to purchase (and receives the disclosure documents) and the date of possession, such changes are considered “material changes.” The seller will then have a duty to inform the buyer of the “material change” and the buyer will have a further 7 days during which he or she may cancel the offer to purchase as a result of the “material change.” A “material change” would be if there is one or more changes in the information contained in the disclosure documents given of a nature that is so material that it would be reasonable for a buyer to cancel the deal as a result of such change. If a notice of a “material change” is not given, the buyer has the right up to the date of possession to cancel the offer to purchase and the seller could potentially be liable for damages should they arise.
Every condominium corporation in Manitoba must have a reserve fund study. The study includes a financial plan showing that the reserve fund would have enough funds to meet the upcoming capital requirements of the condominium corporation.
A buyer is entitled to receive an excerpt of the specific part of the condominium plan which shows the location of the condominium unit they are purchasing. It is very important for purchasers to confirm they are acquiring the correct condominium unit.
If you have questions about buying or selling a condominium unit, our lawyers would be pleased to assist you.
Notice: The articles on our website are provided for general information purposes only and should not be relied upon as legal advice or opinion. They reflect the current state of the law as at the date of posting on the website, and are subject to change without notice. If you require legal advice or opinion, we would be pleased to provide you with our assistance on any of the issues raised in these articles.
