CPA · Condominium Property Regulation
Part 7 — Purchaser's Protection Programs
67 Requirements of a purchaser's protection program
of the money paid to a developer by a purchaser for the purchase of
a unit.
(2) In order to qualify as a purchaser's protection program that
may be approved by the Minister under section 14(10) of the Act,
the program must be
(a) a plan, agreement, scheme or arrangement that,
(i) in respect of a unit being purchased, provides for the
receipt, handling and disbursement of the purchase
money and under which the money is to be paid to
and held by a third party and is to be disbursed by
that third party to the developer, based on the
progress of construction of the unit and the related
common property as determined by a cost consultant,
and
(ii) provides for the refund to the purchaser of
undisbursed purchase money in the event of the
developer's failure to complete the construction of
the unit or the related common property or both,
(b) a plan, agreement, scheme or arrangement that provides
for an indemnity under which the program provider agrees
to indemnify a purchaser of a unit against the loss of the
purchaser's money, where that loss is incurred as a result
of the developer's failure to complete the construction of
the unit or the related common property or both, or
(c) a plan, agreement, scheme or arrangement that provides
for the program provider, at the option of the program
provider, to either
(i) refund to the purchaser of a unit the purchase money,
where the purchaser suffers loss as a result of the
developer's failure to complete the construction of
Section 68 AR 168/2000
the unit or the related common property or both in
accordance with the purchase agreement, or
(ii) complete the unit and its proportionate share of the
related common property in accordance with the
purchase agreement where the unit and the related
common property have not been completed as a
result of the developer's failure to complete the
construction of the unit or the related common
property or both in accordance with the purchase
agreement.
(3) A purchaser's protection program referred to in subsection (2)
is subject to the terms, conditions, exceptions, exclusions and
limitations approved by the Minister as set out in the certificate
issued under section 69.
AR 168/2000 s67;108/2004