How to Cancel Condo Communities

To cancel a condo purchase agreement or contract in a condo community, particularly in jurisdictions like Ontario, here are the key steps and considerations:

Understanding the Contract

Before attempting to cancel, it is crucial to review the terms of your purchase agreement or contract. Check if there are any specific clauses that outline the conditions under which you can cancel and any associated penalties or consequences.

Withdrawal Before Acceptance

If the offer or counter-offer has not been formally accepted (i.e., signed with proper witnessing), you can withdraw it without legal repercussions. This also applies if there is a time limit on the offer or counter-offer and it expires without being accepted.

Cooling-Off Period

In Ontario, purchasers of new condominiums have a 10-day cooling-off period during which they can back out of the purchase agreement without penalty.

After Formal Acceptance

If the offer or counter-offer has been formally accepted, cancelling the agreement can have significant consequences. You may lose your deposit and could be liable for damages suffered by the other party, such as lost opportunities to sell to someone else, delayed move expenses, or the seller’s loss on another home. In extreme cases, a court could order specific performance, requiring you to complete the purchase, or hold you responsible for the entire purchase price plus expenses and court costs.

Termination Due to Impossibility

An agreement can be terminated if it becomes impossible to perform through no fault of either party (e.g., the property is destroyed in a flood or fire before the buyer takes possession).

Notification and Communication

• If you decide to cancel, notify the seller or builder in writing as soon as possible.
• Be prepared to provide reasons for the cancellation, although this may not affect the outcome if the contract does not specify refund conditions.

Financial Implications

• Unless specified in the contract, the builder or seller is not obligated to refund your deposit if you cancel.
• You may need to consider alternative financial arrangements, such as buying a less expensive car or finding additional income, if you wish to proceed with the purchase.

Legal Advice

It is highly recommended to consult with a lawyer to understand all the legal and financial documents involved in the purchase and to ensure you are aware of all your obligations and potential liabilities.

Steps to Cancel

• Review the Contract: Check for any clauses related to cancellation.
• Notify in Writing: Inform the seller or builder in writing of your intention to cancel.
• Understand Penalties: Be aware of the potential loss of deposit and other liabilities.
• Seek Legal Advice: Consult a lawyer to navigate the cancellation process.
• Consider Alternatives: If cancellation is not feasible, explore other financial options to proceed with the purchase.

By following these steps, you can ensure that you are taking the necessary actions to cancel your condo purchase agreement while being aware of the potential consequences.