How does the 10-day cooling-off period work on a new condo in Ontario?
Updated November 10, 2026
When you buy a new condo from the builder in Ontario, you have 10 days to cancel the agreement for any reason and get your deposit back. Section 73 of the Condominium Act, 1998 sets this. The 10 days start on the later of the day you receive a copy of the agreement signed by you and the builder, and the day you receive the disclosure statement and the Condo Guide (Condominium Authority of Ontario).
To cancel, give written notice to the builder or the builder's lawyer before the 10 days run out. The builder must then return your deposit, with any interest that is payable. A resale condo and an assignment have no cooling-off period. A new freehold home gets one for agreements signed on or after January 1, 2027 (Home Construction Regulatory Authority).
When does the 10-day clock start?
Not on the day you sign. The period runs from the later of two dates: the day you receive a copy of the agreement signed by both you and the builder, and the day you receive the disclosure statement and the Condo Guide, the plain-language guide published by the Condominium Authority of Ontario. If the builder's signed copy or the documents reach you a week after you sign, the 10 days start then.
Write down the date you received each document, and count calendar days, so weekends count. Give your notice well before the last day rather than on it.
How do I cancel?
Deliver a written notice that you are cancelling (rescinding) the agreement to the builder or the builder's lawyer, at the address the agreement gives for notices. Keep proof of when it was delivered. You do not have to give a reason, and no penalty applies.
Once the agreement is cancelled, the builder must return the money you paid, with any interest the Condominium Act requires. Your deposit is held in trust during this time, so it is there to be returned (see the deposit guide below).
What if the builder changes the project after I sign?
If the builder makes a material change, one a reasonable buyer would see as changing the value or use of the unit or the property, it must deliver a revised disclosure statement. Section 74 of the Condominium Act, 1998 then gives you another 10 days, from receiving it, to cancel. Changes the builder does not treat as material do not restart the clock.
Whether a change is material can be disputed and decided by the Superior Court of Justice. Courts have held buyers to the 10 days, so if you think a change matters to you, speak to a real estate lawyer inside that window.
Freehold homes, resales and assignments
Ontario's Homeowner Protection Act, 2024 adds a 10-day cooling-off period for new freehold homes bought from a builder. It applies to agreements signed on or after January 1, 2027, and the 10 days do not begin until the Home Construction Regulatory Authority's information sheet and addendum are completed and included in the agreement you receive (Tarion). During the 10 days you can cancel in writing, and the builder must promptly refund your money with interest (HCRA information sheet, August 2026).
A freehold agreement signed before 2027, a resale home and an assignment have no cooling-off period. On those, the protection is a condition you write into the offer, such as a lawyer's review or financing, agreed before you sign.
Related questions
- Can I cancel a pre-construction condo after the 10 days?
- Only on the terms in your agreement, or within a new 10 days after the builder delivers a revised disclosure statement for a material change (Condominium Act, 1998, section 74). Otherwise the agreement binds you, and walking away can cost you the deposit.
- Does the cooling-off period apply to an assignment?
- No. Buying an assignment means taking over another buyer's agreement, and no new cooling-off period starts. Put the conditions you need, such as a lawyer's review, in the assignment agreement.
- Do I get interest on a returned deposit?
- The builder must return your deposit with any interest the Condominium Act requires. Your agreement states how deposit interest is handled, so check that clause.
- Is this legal advice?
- No. It is general information about Ontario rules as the Condominium Authority of Ontario, the Home Construction Regulatory Authority and Tarion publish them. A real estate lawyer should review your agreement before the 10 days end.