By: Jayson Schwarz

in this article, I am going to try and explain some more of the documents you will receive, together with and being part of the Disclosure Statement.This is the big book or pile of paper you receive from the builder when you sign the Agreement of Purchase and Sale.

What is a Budget Statement? This is a document or series of documents that provide a statement as to the budget for the current fiscal year for the Condominium Corporation (“CC”). Remember there are generally two closings for a new condo - occupancy and registration. This budget is for the year after the second closing. You will receive some very important information, which will help you to decide if you are going to remain in the deal during the 10 day cooling off period. I know this is confusing, but the budget you receive in the Disclosure package is proposed and the Builder is stuck to make good any shortfalls if his projections are off for that first year.

S, 72(6) of the Condominium Act (“CA”) sets out in detail the inclusions in the Statement.  These items include among them: common expenses, level of service to be provided, amount of each expense, allocation and frequency, individual unit holder contributions, reserve fund contribution, any lawsuits, common element fees if any, any extra service costs and any other matters that might affect an owner required under the CA or Regulations.   This will allow you to see how the management of the condominium is going to allocate and spend your money. Ask yourself, is the application of funds sensible? Are there other things in the budget that look strange, etc? Next, check the proportionate allocations to see how your monthly assessment stacks up to what you believed it should be.

Once you have completed your review if you have questions ask the sales agent to either provide answers or get them for you before you firm up the offer.

The other document I want to discuss this week is the Declaration. S.7(2) of the CA sets out the contents of the Declaration and they include among them the following: statement of proportions of common interest related to each unit, broad categories of common expenses, maintenance and repair responsibilities for each unit,  whether certain physical components (pipes, wires, etc.) going into your unit, belong to you or are common elements, specification as to the parts of the common elements that you can use,  and other material required by the Regulations.

The Declaration is important to read. It’s too late to say later I didn’t see that. Remember if you don’t understand have your lawyer explain things to you.

Jayson Schwarz is a Toronto real Estate Lawyer.

Good luck and Happy home hunting!!!!!!!!!!!!!!!!!!!!