Bulletin 22 Reminder
Although ONHWP Bulletin 22 has been around since November 15, 1989, a recently certified class action law suit involving the issues of proper measurement and disclosure of condominium unit size provides a timely reminder of the need for builders to comply with these requirements. In fact, many builders prudently go beyond the minimum disclosure requirements in Bulletin 22 in their agreements of purchase and sale.
Bulletin 22 was issued November 15, 1989 in an effort by the industry to standardize measurement of floor area for both freehold homes and condominium units at the height of the late 1980's real estate boom.
For specific details, I urge readers to review the specific requirements of Bulletin 22 for the methods of calculation of detached, semi-detached, low and highrise units. However, the three common key requirements for all measurements include:
a) Measurement of floor area to the exterior face of the outside walls (or the centre line of common walls or party walls for row, semi-detached and highrise units);
b) A 2% differential in measurement from advertised and actual areas is acceptable;
c) The following notation must be included in any materials which specify an area measurement, including advertising and sales material or the agreement of purchase and sale: “Note: actual usable floor space may vary from the stated floor area”.
The purpose of the Bulletin 22 standard was to ensure that all builders measured floor area in the same manner so that purchasers would be comparing “apples to apples”at all times. The alternative, measurement of interior floor areas, is one which is difficult to standardize given the thickness of walls, drywalls, insulation, partitions, etc.
The commencement of the recent class action case should serve as a reminder that Bulletin 22, whilst providing an industry standard, can provide some protection to builders from potential claims by purchasers that they were mislead as to the actual usable floor area of the unit or home. The purpose of the disclosure requirement in Bulletin 22 is so that purchasers can be made aware that the actual floor area may vary from the advertised floor area.
For the complete article view the document below.
