Is there a cooling-off period when I buy a new condo in Ontario?
Yes. Under Ontario's Condominium Act, purchasers of new condominium units from a builder have a 10-day cooling-off period (called a rescission period) during which they can cancel the agreement without any penalty and receive a full refund of their deposit. The 10-day period begins only once the buyer has received all three of: the fully signed agreement, the developer's disclosure statement, and the CAO's Condo Buyer's Guide, whichever is received last.
This right to rescind is statutory — it cannot be waived or contracted out of. To exercise it, you must deliver a written notice of rescission to the vendor within the 10-day window. The builder is then required to return your deposit within a set timeframe.
Note that this right applies specifically to new condominium pre-construction purchases from a builder. It does not apply to resale condominiums, resale freehold homes, or new freehold homes (nor do new freehold homes carry any equivalent statutory cooling-off period in Ontario). If you are uncertain whether your purchase triggers a cooling-off right, speak with a real estate lawyer before the period expires.
Key takeaways
- New condo buyers in Ontario have a 10-day statutory right to rescind under the Condominium Act.
- The period starts only once you have received all three required items: the signed agreement, the disclosure statement, and the CAO's Condo Buyer's Guide.
- Rescission must be in writing and delivered within the 10-day window.
- This right cannot be waived and applies only to new condo purchases from builders.