Pre-construction condominium developments are subject to the
risk that the development may be cancelled. Over the last several
years, we have seen the cancellation of several significant
developments.
This has prompted the introduction by Tarion, for projects going
to market after January 1, 2020, of the requirement that agreements
of purchase and sale include an information sheet at the front of
the purchase agreement that outlines some of the key potential
risks of buying a residential condominium unit in a
pre-construction standard or phased condo project. These may
include potential early termination conditions within the purchase
agreement, such as reaching a minimum sales threshold for the
project to proceed, the developer securing necessary financing for
construction and completion of the project, and obtaining the
required approvals from the municipality.
