Disclosure before sale
52. (1) An agreement of purchase and sale entered into after the 1st day of June, 1979 by a declarant or proposed declarant of a unit or proposed unit for residential purposes is not binding on the purchaser until the declarant or proposed declarant has delivered to the purchaser a copy of the current disclosure statement and all material amendments thereto. Rescission of agreement (2) The purchaser, before receiving delivery of a deed to or transfer of the unit, may rescind the agreement of purchase and sale within ten days after receiving the disclosure statement or, where there has been a material amendment thereto, within ten days after receiving the material amendment. Notice of rescission (3) A person may rescind an agreement of purchase and sale under subsection (2) by giving written notice of the rescission to the declarant or proposed declarant or to the solicitor of the declarant or proposed declarant. On rescission, money to be refunded (4) Every declarant or proposed declarant who receives notice of rescission under subsection (3) from a person entitled to rescind the agreement of purchase and sale under subsection (2), shall forthwith refund, without penalty or charge, to the person giving notice, all money that the declarant or proposed declarant received from that person under the agreement that was credited as payment against purchase price. Where statement false or misleading (5) Where any statement or material required under this Act to be provided by a declarant or proposed declarant to a purchaser of a unit or proposed unit for residential purposes contains any material statement or information that is false, deceptive or misleading or fails to contain any material statement or information, the corporation or any unit owner who relied on such statement or material is entitled, as against the declarant or the proposed declarant to damages for any loss sustained as a result of such reliance. Disclosure statement (6) The disclosure statement referred to in subsection (1) shall contain and fully and accurately disclose, (a) the name and municipal address of the declarant or proposed declarant and of the property or proposed property; (b) a general description of the property or proposed property including the types and number of buildings, units and recreational and other amenities together with any conditions that apply to the provision of amenities; (c) the portion of units or proposed units which the declarant or proposed declarant intends to market in blocks of units to investors; (d) a brief narrative description of the significant features of the existing or proposed declaration, by-laws and rules governing the use of common elements and units, and of any contracts or leases that may be subject to termination or expiration under section 39; (e) a budget statement for the one year period immediately following the registration of the declaration and the description; (f) where construction of amenities is not completed, a schedule of the proposed commencement and completion dates; and (g) any other matters required by the regulations to be disclosed. Budget statements (7) The budget statement mentioned in clause (6) (e) shall set out, (a) the common expenses; (b) the proposed amount of each expense; (c) particulars of the type, frequency and level of the services to be provided; (d) the projected monthly common expense contribution for each type of unit; (e) a statement of the portion of the common expense to be paid into a reserve fund; (f) a statement of the assumed inflation factor; (g) a statement of any judgments against the corporation, the status of any pending lawsuits to which the corporation is a party and the status of any pending lawsuits material to the property of which the declarant or proposed declarant has actual knowledge; (h) any current or expected fees or charges to be paid by unit owners or any of them for the use of the common elements or part thereof and other facilities related to the property; (i) any services not included in the budget that the declarant or proposed declarant provides, or expenses that the declarant or proposed declarant pays and that might reasonably be expected to become, at any subsequent time, a common expense and the projected common expense contribution attributable to each of those services or expenses for each type of unit; (j) the amounts in all reserve funds; and (k) any other matters required by the regulations to be disclosed. Inaccurate statement of common expenses (8) Where the total amount incurred for the common expenses provided for in the budget statement exceeds the total of the proposed amounts set out in the statement, for the period covered by the budget statement mentioned in clause (6) (e), the declarant shall forthwith pay to the corporation the amount of the excess except in respect of increased expenses attributable to the termination of an agreement under section 39. R.S.O. 1990, c. C.26, s. 52 (1-8). Where revenue shown on budget statement (9) Where the declarant shows any expected fees, charges, rents or other revenue to be paid to the corporation for the use of the common elements or assets or any part thereof or any other facilities related to the property and, (a) where the total amount received is less than the expected fees, charges, rents or other revenue, the declarant shall forthwith pay to the corporation the amount of the deficiency less the amount, if any, that the total of the proposed amounts for common expenses set out in the budget statement mentioned in clause (6) (e) exceeds the total amount incurred for common expenses for the period covered by the budget statement; or (b) where the total amount received is more than the expected fees, charges, rents or other revenue, the declarant may set off the amount of the excess against any amount the declarant may be required to pay under subsection (8). R.S.O. 1990, c. C.26, s. 52 (9); 1993, c. 27, Sched.