The 10-Day Cooling-Off Period

What it is

Under Ontario's Condominium Act, 1998 and the New Home Construction Licensing Act, 2017, when you sign a purchase agreement for a pre-construction condominium unit, you have a 10-calendar-day rescission period— commonly called the “cooling-off period” — during which you can cancel the agreement without penalty and receive a full refund of any deposits paid.

The 10 days begin the day after you receive the signed agreement and the condominium disclosure statement from the builder.

What the disclosure statement is

The disclosure statement (also called the “disclosure document”) is a legally required package of documents the builder must give you before or at the time of signing. It includes:

• The proposed declaration and description of the condominium corporation
• Proposed budget for the first year of operation
• Reserve fund study
• Site plan and architectural drawings
• Material facts about the project

The clock doesn't start until you have both the signed agreement and the complete disclosure statement. If you receive them on different days, the 10-day period starts from the later of the two.

What it protects — and what it doesn't

The cooling-off period protects you against signing under pressure and then realizing you need more time to review documents, get legal advice, or secure financing.

It does notprotect you from signing a bad deal if you don't use the time wisely. Too many buyers treat it as a formality. Your lawyer has to review a purchase agreement that often runs 50–80 pages. Book that appointment before you sign — not after.

How to rescind

To cancel during the cooling-off period, you (or your lawyer) must deliver written notice to the builder's solicitor before midnight on the 10th day. The notice must:

• Be in writing
• Identify the purchase agreement
• State clearly that you are rescinding the agreement

Delivery method matters — certified mail, fax with confirmation, or email if the agreement specifies email service. Your lawyer will know the right approach. The builder must return your deposit within 10 days of receiving the notice.

After the 10 days

Once the cooling-off period passes, you are bound by the agreement. Cancellation after that point means you forfeit your deposit (typically 5–20% of the purchase price) and may face additional legal exposure.

This is why the standard advice is: hire a real estate lawyer before you sign, not after. Use the 10 days to have your lawyer negotiate amendments to the agreement — deposit schedule, assignment rights, closing date provisions. Builders expect it.