Many buyers of new condominium units sign their purchase agreement based on plans. They learn at the notary's office.
Many buyers of new condominium units sign their purchase agreement based on plans. They learn at the notary's office, during the signing of the deed of sale, that the living area mentioned in the location certificate is smaller than the one stated in the purchase agreement. Promoters often respond that "this is the way things are done in the industry." Are they right or wrong?
For instance, a buyer, after signing a preliminary contract to purchase a condominium unit based on plans, discovers the week before the signing of the deed of sale that the living area has a 12% deficit. This leads to several meetings with the developer. The buyer asks for a price reduction, but the seller refuses, claiming that the architect's calculation includes the exterior walls. The seller refers the buyer to the contract, stating that the buyer "accepts that the purchase price will remain the same regardless of any difference in the area compared to the area mentioned in the preliminary plans." Faced with this refusal and the need to move, the buyer signs the deed of sale "subject to the right to claim a reduction in the sale price." And that is exactly what the buyer does. The court* reminds:
The Court, considering that the contributory value related to the area deficit would be $113,000 according to the expert appraiser paid by the buyer, orders the seller to refund this amount.
Whether we think big or think small, just because something is smaller doesn't mean we should pay as if it were big, especially when an expert appraiser confirms it.
*CS 500-17-084286-148 (appeal dismissed by the Quebec Court of Appeal)This browser does not support this kind of file. Please download the file to view it: Download the file