Condominium purchasers often do not read the Disclosure documentation which accompanies their Agreement of Purchase and Sale. The Disclosure documentation is important because it contains information which may have an impact on the use and enjoyment of other facilities in the community.
For a group of owners who commenced a lawsuit against a developer in Collingwood, had they understood that the Clubhouse would not be turned over to their condominium corporation until the very last unit was sold, they probably would have saved themselves substantial legal fees.
In the recent case, Simcoe Vacant Land Condo. Corp. No. 272 v. Blue Shores Developments Ltd., a group of owners (the “Applicants”) had purchased their vacant land condominium units from Blue Shores Developments (the “Developer”). The Disclosure documentation required the Developer to transfer an existing community clubhouse (the “Clubhouse”) to the condominium corporation upon the sale of all property within the development project area. The Disclosure documentation provided that the conveyance could occur earlier, at the sole discretion of the Developer.
The Developer had managed to sell all but seven condominium units and, as a result, had not conveyed the Clubhouse to the condominium corporation.
The Applicants claimed that they were entitled to ownership of the Clubhouse before the transfer of all the units, arguing that the failure to convey the Clubhouse amounted to a breach of trust and oppressive conduct. The Applicants further argued that the interest created by the Purchase Agreement included a present interest in the title of the Clubhouse.
While impressed by the Applicants’ display of “legal gymnastics,” Justice Morgan dismissed the application as it amounted to a complaint about the adherence to disclosed terms rather than any breach of contract.
The take away from this one is “condo purchasers, start reading your condo docs….”
Special thanks to Alyssa Gebert and Michael McDonald who assisted with this article.
