Consumer protection—resales

There is very little in Bill 106 that assists buyers of re-sale condos. It is doubtful that they were even thought of.

What buyers need
They need audited financial statements that they can understand. The present statements may be adequate for public corporations with shares as financial investors and short buyers act, if indirectly, to assist buyers understand the risks that they are taking.

They need declarations written in clear language. As the Kealey Commission recommended so long ago, there should be standard paragraphs used in disclosure statements and in declarations so buyers can have a good understanding of what they are buying.

The need to be able to read the by-laws, understand what they mean and realized that these are legally binding on them.

The rules and regulations are usually easier to understand.

Real estate lawyers
Buyers need to know that the real estate agents have a clause in the purchase agreements stating that the deal is dependent on the real estate lawyer approving the status certificate. That sounds better than it really is.

The real estate lawyers have to paid more if they are going to spend the time required to read through the status certificate, the financial statements, the declaration, by-laws and the insurance certificate to find out exactly what the owner is buying into. Are the buyers willing to pay for that? Will the Condominium Authority insure that condo buyers realize the risks they are taking if they don't?


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