New condominium buyers in Ontario get a 10-day cooling-off period: a statutory right to cancel a pre-construction condo purchase for any reason within 10 days and get a full refund of your deposit. The right comes from the Condominium Act, 1998, and the 10 days run from the later of the day you receive the signed agreement of purchase and sale or the day you receive the builder's disclosure statement. This applies to brand-new condos only. Freehold pre-construction does not currently carry this right. Here is how the window works and what to do inside it.
We use these 10 days on every pre-construction condo deal. Signing feels like the finish line, but on a condo it is really the start of a short, protected window where you confirm the deal is right before it becomes binding. Treated well, it is one of the strongest protections a new-condo buyer has.
What the 10-day cooling-off period is
The cooling-off period is a legal right to walk away from a new condo purchase, for any reason, in the first 10 days. Section 73 of the Condominium Act, 1998 gives the buyer of a pre-construction (or newly converted) condominium unit the right to rescind the agreement of purchase and sale within 10 days. You do not have to explain yourself, and you do not need the builder's permission. Change your mind, get cold feet on the numbers, or find a problem in the paperwork, and you can cancel. This right exists because the buyer is committing to a home that does not exist yet, based on documents the builder controls. It is a deliberate consumer protection, not a loophole.
When the 10 days start
The clock starts on the later of two dates: the day you receive your fully signed agreement, or the day you receive the disclosure statement. The disclosure statement is the package the builder must give a new-condo buyer describing the building, the proposed budget, the declaration and rules, and other key facts. Because the 10 days run from whichever of the two documents arrives later, receiving your signed agreement does not necessarily start the clock if the disclosure statement comes afterward. Confirm in writing the exact date you received each document, and count from the later one. Do not rely on memory or a rough estimate, because the deadline is firm.
How to cancel: written notice, no reason required
To cancel, you or your lawyer give the builder written notice of rescission within the 10 days; no special form and no reason are required. The notice goes to the developer or the developer's solicitor. There is no prescribed wording and you do not owe an explanation. What matters is that the notice is in writing and delivered inside the window. In practice, your real estate lawyer sends it, which is one more reason to have a lawyer engaged from day one of the cooling-off period rather than scrambling on day nine.
You get your full deposit back, with interest
If you rescind within the 10 days, the builder must promptly return everything you paid, plus interest. According to the Condominium Authority of Ontario, a buyer who cancels during the rescission period is entitled to a full refund of the money paid to the developer, with interest, and the interest runs from the date the developer received the money. There is no penalty and no forfeited deposit for using a right the law gives you. This is what makes the window genuinely useful: cancelling costs you nothing but the time you spent looking.
What to do during the 10 days
Use the window to do three things: have a lawyer review the agreement and disclosure statement, confirm your financing, and pressure-test the numbers. This is the whole point of the 10 days, so do not let them pass idly.
- Lawyer review. Give your real estate lawyer the full agreement and the disclosure statement. They will flag the deposit schedule, the closing and occupancy dates, the assignment and leasing clauses, the estimated closing costs and adjustments, and anything unusual in the declaration or budget.
- Financing check. Confirm with your lender or mortgage broker that the purchase fits your budget and that you can carry the deposit schedule. Pre-construction deposits typically run 15 to 20 percent over months, so make sure the instalment dates work. Our guide to deposit structures shows a typical schedule.
- Read the disclosure statement yourself. It contains the proposed condo budget, the rules, and the maintenance-fee estimate. If the numbers or restrictions do not work for you, this is when you find out, while you can still cancel for free.
Material changes restart the clock
If the builder makes a material change to the disclosure statement, a new 10-day cooling-off period begins. Under the Act, when the disclosure information changes materially, the builder must deliver a revised statement, and the buyer gets a fresh 10 days to rescind from the date they receive it. A material change is a substantial change to the facts you relied on, not a minor correction. If your builder sends a revised disclosure statement, do not ignore it. Have your lawyer confirm whether it restarts your rescission right.
Freehold homes: no statutory cooling-off, for now
Here is the point buyers most often get wrong: a new freehold home does not currently get a statutory cooling-off period. The 10-day right lives in the Condominium Act, 1998 and applies to condominiums only. If you buy a freehold pre-construction house, you do not automatically get a legal window to cancel, so the review has to happen before you sign. Ontario has legislated a separate 10-day cooling-off for new freehold homes through the Homeowner Protection Act, 2024, but that provision is not yet in force. It comes into effect on a future date set by proclamation, and the government has pointed to a planned start of January 1, 2027, subject to regulations. Until it is proclaimed, treat freehold pre-construction as having no cooling-off period and do your due diligence up front.
Where we fit in
We represent the buyer, never the developer, and the cooling-off window is exactly where that shows. On a condo, we make sure your lawyer has the agreement and disclosure statement on day one, not day nine, and that your financing is confirmed while you can still walk away for free. On a freehold home, we do that review before you sign, because there is no window to fall back on. It is careful, unglamorous work that saves buyers from deals that were not right.
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Frequently Asked Questions
Is there a cooling-off period for pre-construction condos in Ontario?
Yes. Under the Condominium Act, 1998, a buyer of a new pre-construction condominium gets a statutory 10-day cooling-off period. You can cancel the agreement of purchase and sale for any reason within 10 days and receive a full refund of your deposit with interest. This right applies to brand-new condos, not resale condos and not freehold homes.
When does the 10-day condo rescission period start?
It starts on the later of two dates: the day you receive your fully signed agreement of purchase and sale, or the day you receive the builder's disclosure statement. Because it runs from whichever document arrives later, confirm the exact date you received each one in writing and count the 10 days from the later date.
How do I cancel during the condo cooling-off period?
You or your lawyer must give the builder written notice of rescission within the 10 days. No special form is required and you do not have to give a reason. The notice goes to the developer or the developer's solicitor. In practice, your real estate lawyer sends it, which is why you should engage a lawyer at the start of the window.
Do I get my deposit back if I cancel within 10 days?
Yes. If you rescind within the 10-day period, the builder must promptly refund all money you paid, plus interest that runs from the date the developer received the funds. There is no penalty and no forfeited deposit for exercising a right the Condominium Act, 1998 gives you.
Does a freehold pre-construction home have a cooling-off period?
Not currently. The statutory 10-day cooling-off period applies to condominiums under the Condominium Act, 1998, not to freehold homes. Ontario legislated a separate 10-day freehold cooling-off through the Homeowner Protection Act, 2024, but that provision is not yet in force and comes into effect on a future date set by proclamation, with a planned start pointed at January 1, 2027.
What should I do during the 10-day cooling-off period?
Have a real estate lawyer review the agreement of purchase and sale and the disclosure statement, confirm your financing and that you can carry the deposit schedule, and read the disclosure statement's budget and rules yourself. If a material change is made to the disclosure statement, a fresh 10-day window begins from when you receive the revised statement.