What to Know Before Buying a Condo in Winnipeg, Manitoba

Buying a condominium unit is not quite like buying a house. You are buying your unit and also becoming part of a corporation that runs the building, sets fees and makes rules. What that corporation has done, and plans to do, affects you.

Manitoba law requires sellers to hand over specific documents so you can look at those things before you are locked in. This article walks through what you are entitled to see, how the cooling-off period works, and what to look for in the paperwork.

This article covers the law of Manitoba.

What a seller must give you on a resale

When you buy a resale condo unit, the seller must give you a current seller disclosure statement (Form 2A, 2B or 2C) and a corporation disclosure statement signed within 90 days (Form 3). The documents also include the declaration with amendments, budgets, the latest financial statements, the by-laws and rules, and any reserve fund study or summary, plus Forms 4, 5 and 6B.

The resale disclosure documents are listed in section 51(2) of The Condominium Act, and the reserve fund study is governed by section 50.

A checklist of what to review

• Declaration and amendments: what you own, what is common property, and any use restrictions.
• By-laws and rules: pets, rentals, noise, parking, renovations and any owner-occupancy limits.
• Budgets and latest financial statements: whether the corporation seems to be managed in a steady way.
• Reserve fund study or summary: what major repairs are expected and how they are being funded.
• Condo fees: what they cover and whether the budget suggests they may rise.
• Insurance: what the corporation insures and what you would need to insure yourself.
• Disclosure statements: read the seller and corporation statements for anything unexpected.

If you plan to rent the unit out or live in it long term, the by-laws and declaration are where owner-occupancy and rental rules are usually found. Read them closely and ask a lawyer about anything unclear.

The seven-day cooling-off period

The 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 for Remembrance Day.

If you cancel in the cooling-off period, or for a material change, the seller must refund the amounts you paid plus interest within 10 days after receiving your cancellation notice.

Material changes and new units

You can cancel for a material change by midnight of the seventh day after the seller's written notice, but not after you take possession. A seller who disputes a cancellation made after the cooling-off period may apply to court within 10 days of receiving the notice.

Buying a new unit before the declaration and plan are registered is different. The seller must give Form 6A, Forms 4 and 5, a declarant's disclosure statement (Form 1), a reserve fund study or summary, the proposed declaration, first by-law and rules, any proposed management agreement, plan parts for your unit, and financial projections if the sale falls in the first year all owners contribute to common expenses.

Land transfer tax and paying for the purchase

Manitoba land transfer tax is payable by the buyer, with some exceptions, plus a registration fee. It is calculated on the fair market value of the property on the date the transfer of title is registered, not simply the contract price. The tax is due when the transfer of title is registered at the land titles office.

The rates are 0% on the first $30,000, 0.5% on $30,001 to $90,000, 1.0% on $90,001 to $150,000, 1.5% on $150,001 to $200,000, and 2.0% on the amount over $200,000. For example, a $350,000 value works out to $4,650.

If you are saving for a first home, federal programs may help. The Home Buyers' Plan withdrawal limit is $60,000, and the first-year participation room for a First Home Savings Account is $8,000. You can make both a Home Buyers' Plan and a First Home Savings Account withdrawal for the same home if all conditions are met at the time of each withdrawal.

What to do next

• Ask for the full set of disclosure documents before you decide, and note the date you receive them.
• Mark the end of your cooling-off period in your calendar.
• Have a lawyer review the declaration, by-laws and financial documents with you.
• Raise questions about fees, reserve funding and insurance before you commit.
• Keep copies of everything you are given.

Frequently asked questions