Implied covenants in agreement of purchase and sale
51. (1) Every agreement of purchase and sale entered into by a proposed declarant for a proposed unit for residential purposes shall be deemed to contain, (a) a covenant by the vendor to take all reasonable steps to register a declaration and description in respect of the property in which the unit is included without delay; (b) a covenant by the vendor to take all reasonable steps to sell the other residential units included in the property without delay other than any units mentioned in a statement under clause 54 (1) (c); (c) a covenant by the vendor to take all reasonable steps to deliver to the purchaser a registrable deed or transfer of the unit without delay; and (d) a provision that the vendor will not collect from the purchaser any money on behalf of the corporation. Failure to register declaration within a specified period (2) Despite any provision to the contrary contained therein, an agreement of purchase and sale of a proposed unit for residential purposes shall not be terminated by the proposed declarant only by reason of the failure to register the declaration and description within a period of time specified in the agreement, unless the purchaser consents to the termination in writing. Application to court (3) Despite subsection (2), the proposed declarant may apply to a judge of the Ontario Court (General Division) and the judge may by order terminate the agreement if he or she is satisfied that, (a) the proposed declarant has taken all reasonable steps to register a declaration and description; (b) a declaration and description cannot be registered within a reasonable period of time; and (c) the failure and inability to register a declaration and description is caused by circumstances beyond the control of the proposed declarant. Subsequent registration under Act (4) The judge may, in an order under subsection (3), provide that a declaration and description shall not be registered in respect of the property in which the proposed unit is included during such period as he or she specifies in the order. Registration of order (5) An order under subsection (3) is ineffective until a certified copy thereof is registered. Payment of purchase price (6) Where an agreement of purchase and sale entered into by a proposed declarant for a proposed unit for residential purposes permits or requires the purchaser to take possession of or occupy the unit before a deed or transfer of the unit acceptable for registration is delivered to the purchaser, the money paid in respect of such right or obligation to the proposed declarant shall be not greater, on a monthly basis, than the total of the following amounts: 1. The amount of interest that the purchaser would have paid, monthly, in respect of any mortgage or mortgages the purchaser is obligated to assume or give under the agreement of purchase and sale on delivery of a deed or transfer of the unit. 2. An amount reasonably estimated on a monthly basis for municipal taxes attributable to the proposed unit. 3. The projected monthly common expense contribution for that unit. R.S.O. 1990, c. C.26, s. 51 (1-6). Rights and duties of proposed declarant (7) Where a purchaser takes possession of a proposed unit for residential purposes under an agreement that permits the purchaser to take possession of or occupy the unit before a deed or transfer of the unit acceptable for registration is delivered to the purchaser, despite the provisions of the Tenant Protection Act, 1997, the proposed declarant, (a) shall provide those services and only those services that the proposed corporation will have a duty to provide to owners; (b) shall repair and maintain the property and the proposed unit in the same manner as the proposed corporation will have a duty to repair and maintain; (c) has the same right of entry that the proposed corporation will have; and (d) may withhold consent to an assignment of the occupancy agreement. R.S.O. 1990, c. C.26, s. 51 (7); 1993, c. 27, Sched.; 1997, c. 24, s. 209.