Ontario's 10-Day Cooling-Off Period for New Condos: What You Can Do With It

Signing an agreement of purchase and sale for a pre-construction condo is exciting — but it can also feel rushed, especially in a sales centre where agents push for same-day decisions. Ontario's 10-day cooling-off period (also called the rescission period) exists precisely for this moment: it gives every new-condo buyer a window to pause, get proper legal advice, and walk away if needed — no penalty.

Understanding what this period covers, what it does not cover, and how to use it strategically can save you from a very expensive mistake.

What the cooling-off period actually is

Under Ontario's Condominium Act, a buyer who enters into an agreement of purchase and sale for a new condo unit (including a pre-construction unit) has the right to rescind — that is, cancel — the agreement within 10 days of receiving the required disclosure statement from the developer. As of writing, this 10-day window is a statutory right that cannot be waived or shortened by contract. Verify the current rules with a licensed Ontario lawyer or the Home Construction Regulatory Authority (HCRA).

The clock starts not when you sign, but when you receive the builder's disclosure package. The disclosure statement is a substantial document — often hundreds of pages — describing the project, the unit, fees, rules, and financial details. Builders must deliver it, and only then does your 10 days begin.

What the disclosure statement includes

• The proposed declaration, description, and bylaws of the condo corporation
• The budget for the first year of common expenses
• The management agreement
• Material facts about the project, including phasing and shared facilities
• Any amendments since a prior disclosure (amendments can restart the clock)

How to exercise the right to rescind

If you decide not to proceed, you must deliver written notice of rescission to the builder (or their solicitor) within the 10-day window. The notice must be delivered in the manner specified in the agreement or, if not specified, in a way that creates a verifiable record — registered mail, courier with tracking, or delivery to the builder's solicitor. Email alone may not be sufficient unless the agreement explicitly permits it.

Once valid rescission notice is given, the builder must return all deposit money paid to that point — generally within a short fixed window set by the statute. As of writing, check the current timeframe with your lawyer or the HCRA.

What happens to your deposit during the 10 days

The deposit does not sit in the builder's bank account. Builders are required to hold deposits paid by buyers in a trust account, separate from their own operating funds. This protection applies during the 10-day period and for as long as your deposit is held before closing.

What you should do during the cooling-off period

The 10 days are short — use them deliberately.

1. Hire a lawyer before the 10 days expire

This is the single most important step. A lawyer who reviews new-build agreements regularly can:

• Identify unusual or one-sided clauses (delayed closing provisions, amendment rights, capping or uncapping of closing costs)
• Explain the occupancy fee structure and when it applies
• Flag missing or inadequate disclosure items

Many buyers assume they can review the agreement themselves and "add a lawyer later." By the time most issues surface — at interim occupancy, or the final closing two or three years later — it is too late to rescind.

2. Review the budget and common expenses carefully

The first-year budget is a builder's projection. If it is artificially low to attract buyers, you may face a significant fee increase when the condo corporation takes over. Look for items that seem underestimated relative to similar buildings.

3. Check the permitted amendments clause

Most builder agreements reserve the right to make changes to the unit or building — floor plan adjustments, substitution of materials, relocation of parking — within certain limits. Understand exactly what changes can be made without your consent before you commit.

4. Understand the interim occupancy provisions

New condos are registered differently from resale homes. You may move in — and start paying occupancy fees — months or years before the building is legally registered as a condo corporation. The agreement should describe how occupancy fees are calculated.

Common mistakes during the cooling-off window

• Letting the 10 days pass without getting legal advice. Once the window closes, you are bound by the agreement as signed.
• Assuming the verbal promises of a sales agent are enforceable. If it is not in writing in the agreement, it is not a term.
• Not tracking when the disclosure was delivered. The clock is tight. Confirm the delivery date in writing.
• Sending rescission notice by untracked email. Use a method that creates clear proof of delivery and receipt.

Amendments: when the clock can restart

If a builder delivers a material amendment to the disclosure statement after you sign, that amendment may trigger a new rescission period — giving you another opportunity to exit. Not all changes qualify as material, and the rules are technical. A lawyer can tell you whether an amendment you receive is significant enough to restart your right to rescind.

Frequently asked questions