Ontario law gives every buyer of a pre-construction condo a 10-day cooling-off period during which they can cancel the purchase for any reason and receive a full refund of their deposit. This right is established under Section 73 of the Condominium Act, 1998 and applies automatically to every new condo purchased directly from a builder or developer in the province.
The 10-day clock starts on the later of two dates: the day you receive a copy of the fully signed Agreement of Purchase and Sale, or the day you receive the developer's disclosure statement along with the required Condo Buyers' Guide. These are calendar days, not business days, so weekends count. If you sign on a Friday evening, the weekend days still tick away.
To exercise this right, you or your lawyer must deliver written notice of rescission to the developer or the developer's lawyer within those 10 days. A verbal request or a message through your real estate agent is not sufficient. Once valid notice is delivered, the developer is required to refund all money you have deposited, plus any applicable interest, without penalty or charge.
This window exists because pre-construction agreements are complex. Disclosure packages can run hundreds of pages and contain details about projected maintenance fees, development levies, parking allocations, occupancy timelines, and assignment restrictions. Ten days is a short period to review all of this, which is why most real estate lawyers recommend booking a legal review immediately after signing rather than waiting.
It is important to understand what the cooling-off period does not cover. It does not apply to resale condos, assignment sales, or any purchase made through the MLS system. It also does not currently apply to new freehold homes, though the Ontario government passed the Homeowner Protection Act, 2024, which introduces a similar 10-day right for new freehold purchases once it is proclaimed into force. That proclamation has been delayed and is not expected before January 1, 2027.
If the developer later makes a material change to the disclosure statement after your initial cooling-off period has passed, you may be entitled to a second 10-day rescission window from the date you receive the amended disclosure. Whether a change qualifies as material can be contested, so legal advice is essential in that scenario. Learn more about the documentation involved in condo purchases in our guide on What Is a Status Certificate and Why Does It Matter When Buying a Condo?
