If you’re buying a brand new home in Ontario, you may have a legally protected window to change your mind after signing — known as the cooling off period. But whether this right applies to your purchase, and what you can actually do during those 10 days, depends on what type of home you’re buying and when.
This guide explains the current state of the law clearly — because it’s actively changing in ways that aren’t well understood.
Where Things Stand Right Now
| Property Type | Cooling Off Period | Current Status |
|---|---|---|
| New Condominium | 10 calendar days | In effect now |
| New Freehold Home | 10 calendar days (legislated) | Expected Jan 1, 2027 |
The situation is more nuanced than most buyers realize. Here’s the accurate picture:
New Condos — 10-Day Rescission Period (Currently in Effect)
New condominium purchases in Ontario have had a 10-calendar-day rescission period for many years under the Condominium Act. This right is well-established and currently in effect. From the day you receive the required disclosure statement from the builder — or from the day you sign the agreement, whichever is later — you have 10 calendar days during which you can cancel for any reason and receive your full deposit back.
This is a statutory right. The builder cannot waive it, and no clause in the agreement can remove it. If the builder fails to provide the required disclosure documents, the rescission period doesn’t start until they do.
The 10-day condo rescission period exists specifically because signing a pre-construction agreement is an overwhelming experience — a sales office, a time-limited offer, and a thick contract are not conditions for careful decision-making. The law gives you time to reconsider with your lawyer.
New Freehold Homes — Coming January 1, 2027
In 2024, the Ontario government passed the Homeowner Protection Act, which introduced a 10-day cooling off period for newly built freehold homes — a protection that had long existed for condos but not for houses. This was a significant and widely reported change.
However, the in-force date for the freehold provisions has been delayed. As of mid-2026, the freehold cooling off period is not yet in effect. The expected implementation date is January 1, 2027.
What This Means If You’re Buying a New Freehold Home Now
If you are purchasing a newly built freehold home before January 1, 2027, you do not currently have a statutory cooling off period. Your only protection is the review period provided in the purchase agreement itself — typically the 10-day lawyer review period that experienced real estate lawyers negotiate into the agreement.
This makes retaining a real estate lawyer before signing — not after — more critical than ever. The review window in the agreement is your only protection if the statutory cooling off period hasn’t come into force yet.
What You Should Do During the 10-Day Window (Condos)
Use Every Day of the 10-Day Period
- Retain a real estate lawyer immediately — send them the purchase agreement, disclosure statement, and all schedules on day one.
- Have the lawyer review the full agreement — deposit structure, closing cost caps, permitted delay provisions, occupancy fee structure, assignment rights, and any builder amendments.
- Review the disclosure statement — this document contains material information about the project that the builder is required to disclose. Your lawyer will flag what matters.
- Confirm your mortgage financing is achievable for this specific unit type, price, and expected closing date. Pre-approval from a year ago may not apply.
- Research the builder’s track record — delays, quality issues, and litigation history are publicly available and worth knowing.
- Make a clear decision before the 10 days expire — if you’re proceeding, great. If not, your lawyer must deliver written rescission notice before the window closes.
What You Cannot Do During the Rescission Period
These Actions Do Not Protect You or Extend the Period
- Simply not responding to the builder — silence is not rescission. You must deliver written notice.
- Verbally telling a sales rep you want to cancel — cancellation must be in writing delivered to the builder within the period.
- Assuming the period applies to your purchase before confirming — if buying freehold before Jan 1, 2027, no statutory right exists yet.
- Waiting until day nine to involve a lawyer — a one-day turnaround on a complex pre-construction agreement is not how you get proper advice.
How to Properly Rescind During the Period (Condos)
To exercise your rescission right under the Condominium Act, you must deliver written notice of rescission to the builder before the 10-day period expires. Your lawyer prepares and delivers this notice. Delivery method and address requirements are specified in the Condominium Act — your lawyer handles this correctly.
Once properly rescinded, the builder is required to return your full deposit — without penalty, without deductions, and without requiring a reason from you.
The cooling off period exists because new home purchases are high-pressure, high-stakes transactions that deserve careful review. Whether you’re exercising the right or confirming you want to proceed, the 10 days should be active, not passive. Your lawyer should be involved from day one — not called on day nine.
Legal disclaimer: This blog is for general educational purposes only and does not constitute legal advice. The status of the Homeowner Protection Act freehold provisions may change. Always confirm the current state of the law and your specific rights with a qualified real estate lawyer before signing or rescinding any new home purchase agreement. The 10-day rescission period and its mechanics are governed by Ontario legislation, and specific rules apply.
Frequently Asked Questions
Does the 10-day cooling off period apply to new freehold homes in Ontario right now?
Not yet, as of mid-2026. The Ontario government passed the Homeowner Protection Act in 2024 which included a cooling off period for new freehold homes, but the in-force date has been delayed. The expected implementation date is January 1, 2027. Until that date, buyers of newly built freehold homes do not have a statutory cooling off right. Confirm the current status with your real estate lawyer before relying on any cancellation rights.
Does the 10-day cooling off period apply to new condos in Ontario?
Yes. New condominium purchases in Ontario have had a 10-calendar-day rescission period under the Condominium Act for many years. This is a well-established statutory right that is currently in effect. You can rescind for any reason during this period and receive your full deposit back.
What should I do during the 10-day cooling off period for a new condo?
Engage a real estate lawyer on day one — not day nine. Have them review the full purchase agreement, disclosure statement, and all schedules. Confirm your financing is viable for this specific unit. Research the builder’s track record. Make a clear decision before the period expires. If you’re rescinding, your lawyer must deliver written notice to the builder before the 10 days are up.
Can a builder waive the 10-day cooling off period for condos?
No. The 10-day rescission period for new condos is a statutory right under the Condominium Act — it cannot be waived by contract. Any clause in a purchase agreement that attempts to remove this right is unenforceable. The builder also cannot pressure you to sign away this right as a condition of purchase.
Does the cooling off period apply to resale homes in Ontario?
No. There is no cooling off period for resale home purchases in Ontario. Once a resale offer is accepted — or once conditions are waived and the deal is firm — you are legally bound to complete the transaction. The cooling off period applies only to new construction purchases from builders, and currently only to new condos under the Condominium Act.
Sales Representative · Zolo Realty Brokerage · Licensed in Ontario (RECO #5035461)
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