10-Day Cooling-Off Period for Pre-Construction Condos in Ontario

If you buy a new or pre-construction condo unit from the developer in Ontario, you have 10 days to cancel (the law says “rescind”) the agreement of purchase and sale for any reason. The 10 days start on the later of the day you receive the agreement signed by both sides, the disclosure statement and Ontario’s Condominium Buyers’ Guide. You cancel by notifying the developer within those 10 days, and your deposit should generally be refunded with any applicable interest.

The rules below come from the Condominium Authority of Ontario (CAO) and Ontario’s Residential Condominium Buyers’ Guide, and are stated as of October 2026.

Who gets the 10 days

The right comes from section 73 of the Condominium Act, 1998 (the Condo Act). It applies when you buy a residential condo unit directly from the developer (the Act calls the developer the “declarant”) or from someone acting on the developer’s behalf. That covers the usual pre-construction purchase at a sales launch or a builder’s release of units.

The developer must give you two documents: a disclosure statement (section 72 of the Condo Act) and Ontario’s Residential Condominium Buyers’ Guide, prepared by the CAO. According to the CAO, your agreement is not binding on you until you have received both.

A condo townhouse or stacked townhome in a new condo project is still a condo unit. If you’re buying one from the developer, ask your lawyer to confirm that both documents were delivered, and when.

When the 10 days start

This is the part buyers most often get wrong. The 10 days don’t necessarily start the day you sign. According to the Condo Buyers’ Guide, they begin on the later of the date you receive:

• the agreement of purchase and sale, signed by both you and the developer;
• your disclosure documents (the disclosure statement); and
• the Condo Buyers’ Guide.

Say you sign on a Saturday, but the developer signs and returns the agreement the following week, or the disclosure statement arrives later. The clock runs from the last of those deliveries. Write down the date you received each document. If there’s ever a question about whether you cancelled in time, those dates matter.

The CAO recommends that you carefully review the disclosure statement, the agreement and the Condo Buyers’ Guide within the 10-day period. That only works if you have a real estate lawyer lined up before you sign.

How to cancel

Section 73 lets you rescind the agreement “by notifying the developer” within the 10-day cooling-off period, according to the Condo Buyers’ Guide. You don’t need to give a reason.

The Guide doesn’t spell out the form of the notice or how it must be delivered. Before you send anything, have your lawyer check what your agreement says about notices, and either send it for you or confirm how it should go. Keep proof of when the developer received it. The notice has to land within the 10 days.

What happens to your deposit

According to the Condo Buyers’ Guide, if you rescind within the cooling-off period you should generally get back, without penalty or charge, all money deposited toward the purchase price, along with any applicable interest. The Guide doesn’t state a timeline for the refund. The interest rules are in sections 19 and 19.1 of Ontario Regulation 48/01 under the Condo Act. The CAO says that when a buyer rescinds within ten days of receiving the agreement, the Condo Buyers’ Guide and the disclosure statement (or after a material change), interest is at “two percent below the bank rate.”

The CAO also notes that Tarion protects deposits and other payments by condo buyers up to a maximum of $20,000, and that if a deposit isn’t refunded, you may be able to make a claim with Tarion. That figure is as stated by the CAO. Confirm the current limit for your own agreement with Tarion or your lawyer.

A second 10 days if the disclosure changes

The Condo Act gives you another chance to cancel if there is a material change in the disclosure statement. The Condo Buyers’ Guide describes this as an important change that would have caused a reasonable buyer not to go ahead, had it been in the disclosure they received.

If there is a material change, you may be able to rescind during an additional 10-day cooling-off period. According to the Guide, it starts from the later of:

1. the date the developer delivers a revised disclosure statement or a notice confirming the material change;
2. the date you otherwise become aware of the material change; or
3. the date the Ontario Superior Court of Justice decides a material change has occurred.

Whether a change is “material” is a legal question. If the developer sends you a revised disclosure statement or a notice of change, get it to your lawyer right away so you don’t miss the new window.

What to review with your lawyer

The Condo Buyers’ Guide lists the documents developers are generally required to give pre-construction buyers. These are the ones to put in front of your lawyer during the 10 days:

• The agreement of purchase and sale. Your rights and obligations, the builder’s, and the details of the unit and project.
• The HCRA Information Sheet. Since January 1, 2020, buyers in standard or phased pre-construction condo projects must get this as the first page of the agreement. It covers the risks of buying pre-construction, the estimated occupancy date and the status of construction. Since July 1, 2022, it also covers possible termination of the agreement.
• The Condominium Home Addendum. A required part of the agreement. It holds the Statement of Critical Dates (including the firm and outside occupancy dates), the delayed occupancy warranty and the early termination conditions under which the project might not go ahead. If it conflicts with the agreement, the addendum wins.
• The disclosure statement. The existing or proposed declaration, by-laws and rules; a summary of agreements the builder enters into before the turn-over meeting, such as management contracts; and the first-year budget after registration, showing projected monthly common expense (maintenance) fees for each type of unit.
• The Tarion Warranty Information Sheet. Must be attached to the agreement. It explains the pre-delivery inspection, deposit protection and delayed occupancy coverage, among other things.

Questions to ask while the clock runs: What are the early termination conditions? How can the occupancy dates move? What does the first-year budget say about monthly fees? What do the declaration and rules say about leasing and pets? How are your deposits held? The Guide notes that, generally, deposits received by the builder of a condo project must be held in trust.

The Guide also suggests checking that the builder is licensed by the Home Construction Regulatory Authority (HCRA) through its Ontario Builder Directory. Our guide to vetting a builder with Tarion and the HCRA walks through that check.

Resale condos and freehold homes

The 10-day right is tied to buying a new or pre-construction condo unit from the developer, with the disclosure statement and the Condo Buyers’ Guide. Other purchases work differently:

Purchase	Condo Act 10-day cooling-off?	What to know
New or pre-construction condo unit from the developer	Yes	Starts on the later of receiving the signed agreement, the disclosure statement and the Condo Buyers’ Guide
Resale condo from an existing owner	Not the developer cooling-off period described here	The Guide points resale buyers to the status certificate and the condo corporation’s governing documents
Freehold home that is not part of a condominium	No; it isn’t a condo unit, so the Condo Act right doesn’t apply	Don’t assume you can cancel after signing. Have a lawyer review the agreement first

One source of confusion: in condo law, “freehold” also describes a type of condominium. The Guide lists standard, phased, vacant land and common elements condos as freehold condos. A new unit in one of those, bought from the developer, is still a condo purchase. If you’re not sure what you’re buying, ask your lawyer before you sign.

For more on contracts, deposits and closing, see our guide to the legal aspects of buying pre-construction homes.

Frequently asked questions

How long is the cooling-off period for a pre-construction condo in Ontario?

As of October 2026, it is 10 days under section 73 of the Condominium Act, 1998, when you buy a new or pre-construction condo unit from the developer.

Does the 10-day period start when I sign?

Not necessarily. It starts on the later of the dates you receive the agreement signed by you and the developer, the disclosure statement and the Condo Buyers’ Guide.

Is there a cooling-off period for freehold homes?

The Condo Act’s 10-day right is for condo units bought from the developer. For a freehold house that isn’t part of a condominium, ask your lawyer what cancellation rights, if any, your agreement gives you before you sign.

What if the developer changes the disclosure statement after I sign?

If it’s a material change, you may be able to cancel during an additional 10-day period, starting from the later of when you get notice, when you otherwise learn of it, or when a court decides a material change has occurred.

Next steps

If you’re comparing projects, browse pre-construction condos or pre-construction homes in Toronto, including 101 Spadina Condos and The Clove Condos. Before you buy, plan your 10 days: have a lawyer ready so the documents get reviewed as soon as they arrive. To register or ask about a project, call Tall Property at 416-878-0749.

Sources: CAO: Pre-construction condos, CAO: Ontario’s Residential Condominium Buyers’ Guide (guide last updated October 2023), Condominium Act, 1998 and O. Reg. 48/01.

This is general information, not legal or tax advice.