Real estate law column by Bob Aaron

Can a developer’s board of directors — appointed to serve at a new condo until owners can vote in their own board — prohibit buyers from suing for deficiencies that are not covered by the Tarion warranty?

Yes, according to a decision of the Ontario Court of Appeal last month.

The Real Estate Council of Ontario (RECO), the body that licenses and governs real estate agents, is cracking down on representatives who advertise two-unit homes without making clear whether the second unit — usually a basement apartment — is legal.

Many agents typically use wording such as, “Agents and seller do not warrant legal retrofit status of in-law suite.” Descriptions like this could disappear in the wake of two recent decisions of RECO discipline panels.

What happens if condominium board members fail to comply with the Condominium Act? That question was the focus of a case which ultimately wound up in Ontario’s Court of Appeal.

In 2011, following extensive garage repairs, the landscaping outside a 1970s-era Ottawa condominium complex required restoration. The Park Square complex (Carelton Condominium Corporation 145) consists of a tower with 142 residential units, a nine-storey underground parking garage and a landscaped courtyard which became the focus of bitter litigation.

The Seller Property Information Statement, a disclosure form created by the real estate industry, continues to cause grief for sellers, buyers — and real estate agents.

Back in August, 2008, Daniel Fors bought a house in Thunder Bay from Vance and Dorothy Overacker for $392,000. Jack Mallon was the real estate agent for the sellers on the transaction.

Following closing, the buyer experienced significant water problems in the basement and roof.