A buyer makes an offer on a condominium unit. The status certificate, provided by the seller's agent, indicates a significant upcoming special assessment for major structural repairs, which was previously voted on and approved by the condominium corporation. The buyer was not made aware of this assessment prior to submitting the offer and now wishes to rescind the agreement. What is the most likely outcome?

Question: A buyer makes an offer on a condominium unit. The status certificate, provided by the seller's agent, indicates a significant upcoming special assessment for major structural repairs, which was previously voted on and approved by the condominium corporation. The buyer was not made aware of this assessment prior to submitting the offer and now wishes to rescind the agreement. What is the most likely outcome?

Answer options:

• The buyer cannot rescind, as due diligence is their responsibility to review the status certificate before making an offer.
• The buyer can likely rescind the agreement within a statutory cooling-off period specific to condominiums.
• The agreement is binding, but the buyer may sue the seller for damages related to the undisclosed assessment. ✅ The buyer can likely rescind the agreement within a specific timeframe after receiving and reviewing the status certificate, if a condition was included or disclosure was misrepresented.

Correct answer: The buyer can likely rescind the agreement within a specific timeframe after receiving and reviewing the status certificate, if a condition was included or disclosure was misrepresented.

Explanation: While there isn't a general 'cooling-off period' for resale condos in Ontario, an Agreement of Purchase and Sale for a condominium is often conditional upon the buyer's satisfaction with the status certificate. If the special assessment was not properly disclosed, and a condition related to the status certificate provides an out, or if the seller actively misrepresented the financial health, the buyer may have grounds to rescind.