Kitec and the Seller

Kitec Replacement and Condominium Special Assessment


Buyer buys a condo on a building with Kitec, firm offer with no inspection or status review although they were provided with the status prior to the offer.

Status acknowledges Kitec and says no issues with it at that time. A few weeks before closing, condo building announces special assessment for Kitec replacement. Does owner have to disclose? If yes, why?


Let’s have a look at the standard form OREA Agreement of Purchase and Sale for condominiums:

“Seller represents and warrants to Buyer that there are no special assessments contemplated by the Condominium Corporation” .

The key word her is “contemplated”, which means “yet to come”, or “documents to follow”. In this situation, of course, Kitec has been there for years and it requires replacement.

The old plumbing is going and the new plumbing is coming in. Who should pay? After all, it’s the Buyer who is going to get the benefit of the brand new plumbing for the next 50 years. The Condo Board can work the split:

1) regular reserve to remove old, and

2) special assessment for the new.

If the Seller wants the Buyer to contribute because they are the ones getting the benefit, then:

1) they should disclose, and

2) ask for more money.

If the Seller decides to hide the facts, then, they have a problem.

Brian Madigan LL.B., Broker

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