Can You Cancel a Condo Purchase in Manitoba? The Cooling-Off Period

Signing an agreement to buy a condo can feel final, especially when you have already paid a deposit. In Manitoba, condo buyers have a protection that buyers of other kinds of property are not described as having here: a short window to change your mind.

This guide explains how that window works, what the seller has to hand over before it starts, how a refund works, and the separate right to cancel if something material changes. Dates matter a great deal here, so it is worth confirming your own situation with a lawyer.

This article covers the law of Manitoba.

How the seven-day cooling-off period works

The cooling-off period for a condominium purchase is seven days. It starts on the later of two events: the day you sign the agreement, or the day the seller delivers the required disclosure documents.

During that time you can cancel for any reason. You do not have to show that the seller did anything wrong.

If the seventh day falls on a weekend or a holiday, the period runs to the next business day. The one exception is Remembrance Day.

Because the clock depends on when the documents were delivered, keep a record of when you received each one. If the seller delivers documents after you sign, the seven days begin later.

Documents the seller must deliver for a resale unit

For a condo resale, the seller must give you a package before the clock can start. The list of resale disclosure documents is set out in section 51(2) of The Condominium Act, and the reserve fund study is governed by section 50.

• A current seller disclosure statement (Form 2A, 2B or 2C)
• A corporation disclosure statement signed within 90 days (Form 3)
• The declaration with its amendments
• Budgets and the latest financial statements
• The by-laws and rules
• Any reserve fund study or summary
• Forms 4, 5 and 6B

Read these before the seven days run out. They tell you about the building's finances, rules and repair planning, which is often what a buyer most needs to understand.

Documents for a new unit before registration

New units are different. Before the declaration and plan are registered, the seller must give a separate package.

• Form 6A, and Forms 4 and 5
• The declarant's disclosure statement (Form 1)
• A reserve fund study or summary
• The proposed declaration, the first by-law and rules
• Any proposed management agreement
• The plan parts for the unit
• Financial projections, if the sale falls in the first year all owners contribute to common expenses

If you are buying a unit that is not yet built or registered, check which package applies to you and whether every item arrived.

Refunds and the separate right to cancel for a material change

If you cancel during the cooling-off period, or for a material change, the seller must refund the amounts you paid plus interest within 10 days after receiving your cancellation notice.

A material change is a separate ground for cancelling. You can cancel by midnight of the seventh day after the seller's written notice of the change, but not after you have taken possession.

A seller who disputes a cancellation made after the cooling-off period may apply to court within 10 days of receiving the notice.

What to do next

• Write down the date you signed and the date each disclosure document arrived.
• Check the documents against the list that applies to your unit, resale or new.
• Count seven days carefully, allowing for weekends and holidays.
• Put your cancellation notice in writing and keep proof of when it was given.
• If a seller disputes your cancellation, speak to a lawyer promptly because a court application can be made within 10 days.

Deadlines here are short. A lawyer can read your agreement and documents and confirm how the dates apply to you.

Frequently asked questions