Pre-construction condo sales can move fast, especially at launch events where buyers feel pressure to sign on the spot. Ontario law gives condo buyers a safety net: a 10-day cooling-off period during which you can cancel and get your deposit back. Used properly, it’s your best chance to make sure the deal is right.
What the law says
Under Ontario’s Condominium Act, a buyer of a new condominium unit from the developer (the “declarant”) can rescind the agreement within 10 days after receiving both:
- a copy of the agreement of purchase and sale signed by both the buyer and the declarant, and
- the disclosure statement for the project.
The 10 days start when you’ve received both, not necessarily on the day you signed. If the builder delivers the disclosure statement later, your clock starts later.
How to cancel
You must give written notice of rescission to the declarant or its lawyer within the 10-day period. Your lawyer can send it for you. Once you rescind, the declarant must return your deposits promptly. Keep proof of delivery.
What the cooling-off period covers, and what it doesn’t
| Situation | Cooling-off applies? |
|---|---|
| New condo bought from the developer in Ontario | Yes |
| New condo townhome or stacked town in a condo corporation | Yes, if bought from the declarant |
| New freehold detached, semi or townhome | No |
| Resale condo | No |
| Assignment of a condo agreement | Generally no; treat it as a firm deal |
For freehold purchases, ask to include a condition for lawyer review (often 3 to 10 days) before you sign. Our condo vs townhome comparison explains the difference between condo and freehold ownership.
How to use your 10 days
- Book a real estate lawyer immediately. Ask them to review the agreement, schedules and disclosure statement.
- Check the budget for the condo corporation. The disclosure statement includes the first-year budget and estimated maintenance fees.
- Review closing cost caps. Are development charges, education levies and utility connection fees capped? See closing costs.
- Read the occupancy terms. Understand interim occupancy fees and extension rights. See occupancy vs final closing.
- Check the assignment clause if you might need flexibility later. See our assignment guide.
- Confirm financing. Talk to a lender about pre-qualification. See mortgage pre-approval.
- Look at the floor plan again calmly. Our guide on reading floor plans helps you spot issues.
Common red flags your lawyer may spot
- Uncapped development charges and levies
- Broad rights for the builder to change the unit size or layout
- Restrictions on assignment or leasing
- Unusual HST rebate terms that require you to occupy the unit
Other provinces
Cooling-off rules vary. In British Columbia, buyers of new strata units get a seven-day rescission period after receiving the disclosure statement, and resale buyers have a separate short rescission period. If you’re buying in Vancouver, Calgary or elsewhere, ask a local lawyer which rules apply.
Frequently asked questions
Do I lose anything by cancelling?
Under the Ontario rule, your deposits should be returned in full. You may still owe your own lawyer’s fees.
Can the builder waive or shorten the period?
No. It’s a statutory right that can’t be contracted out of.
Does it apply on weekends?
The period is counted in days; have your lawyer confirm the exact deadline, especially if the last day falls on a weekend or holiday.
New to pre-construction? Read the first-time buyer’s guide, then browse new condos across Ontario.
General information only, not legal advice. Have a real estate lawyer review your agreement and confirm your deadline.
