What Documents Must the Seller Give You When You Buy a Condo in Manitoba?

Buying a condominium unit means buying more than four walls. You are also joining a corporation that shares costs, follows rules and keeps a reserve fund. The documents the seller must hand over are how you see what you are joining before you are fully committed.

This article is a checklist for buyers who have signed, or are about to sign, an offer on a unit in Manitoba. It covers the resale documents, the different set for a new unit, why the timing of delivery matters, and what to look at in each document. Your own situation may raise points not covered here, so a lawyer can confirm the details.

This article covers the law of Manitoba.

The resale documents: what the seller must give you

For a resale unit, the list of disclosure documents is found in s. 51(2) of The Condominium Act, and the reserve fund study is governed by s. 50. The seller must give you the following:

• A current seller disclosure statement (Form 2A, 2B or 2C)
• A corporation disclosure statement signed within 90 days (Form 3)
• The declaration, with its amendments
• Budgets
• The latest financial statements
• The by-laws and rules
• Any reserve fund study or summary
• Forms 4, 5 and 6B

Keep a list of what you actually received, with dates. If something on the list is missing, ask for it in writing rather than assuming it does not exist. Keeping everything together in one folder, in the order you received it, also makes it easier to review with a lawyer.

A new unit sold before registration: a different set of documents

If the declaration and plan are not yet registered, the seller must give a different set of documents. It includes:

• Form 6A, and Forms 4 and 5
• The declarant's disclosure statement (Form 1)
• A reserve fund study or summary
• The proposed declaration, the first by-law and the rules
• Any proposed management agreement
• The plan parts for the unit
• Financial projections, if the sale falls in the first year all owners contribute to common expenses

Because the building may not be finished, many of these are proposals. Read them as a description of what you will be bound by once the documents are registered.

Why delivery matters: the cooling-off period

The condominium cooling-off period is seven days. It starts on the later of the day you sign and the day the seller delivers the disclosure documents, and you can cancel for any reason. If day seven falls on a weekend or holiday, it runs to the next business day, except Remembrance Day.

This means missing documents can matter: the clock is tied to delivery, not only to your signature. If you cancel in the cooling-off period, the seller must refund the amounts you paid, plus interest, within 10 days after receiving your cancellation notice.

A material change after you sign

You may also be able to cancel for a material change. The deadline is midnight of the seventh day after the seller's written notice, and you cannot cancel after taking possession. A refund with interest is also owed in this case, within 10 days after the seller receives your notice. A seller who disputes a cancellation made after the cooling-off period may apply to court within 10 days of receiving the notice.

What to check in each document before the window closes

• Seller disclosure statement: does it match what you saw and were told about the unit?
• Corporation disclosure statement (Form 3): check the signing date is within 90 days, and read what it says about the corporation's position.
• Budgets and financial statements: look at how large the common expenses are, and whether there are signs of money problems.
• Reserve fund study or summary: see whether the fund looks sized for the building's repairs.
• Declaration, by-laws and rules: check anything that affects how you will live in the unit, such as pets, rentals or alterations.
• For a new unit: compare the proposed declaration, projections and any management agreement with what the seller promised.

Book time with a lawyer early. The cooling-off period is short, and a lawyer can read the documents with you before your window closes.

Frequently asked questions