Existing consumer protection rules allow condo buyers an absolute right to change their mind about the purchase without penalty during a 10-day cooling off period. Specific to a condo purchase, buyers will have the right to cancel the purchase if there is a “material change” to the information provided and/or should have been included in the “disclosure statement”.
New rules will provide clarity to the meaning of “material change” by setting thresholds. For example, an increase of less that 10% in the projected maintenance fees will not be considered a “material change”. In addition, the new rules will allow a buyer to seek compensation from buyers for any loss incurred if the developer fails to comply with “material change” disclosure requirements. (more)