Summary
Buying a pre-construction condo in Ontario? Section 73 of the Condominium Act, 1998 gives a purchaser a short right to cancel. The Act does not use the words "cooling-off period". It says the purchaser may "rescind" the agreement of purchase and sale. The declarant (the developer that registers the condominium) or its solicitor must receive written notice within 10 days of the latest of three dates, and must then refund the money with interest. A separate 10-day right can arise if the project changes in a material way.
This post is general information about the Act as consolidated on e-Laws to October 22, 2026. It covers purchases from a declarant only.
Who the pre-construction condo 10-day right is for
The Act speaks of a "unit" or "proposed unit" bought from "the declarant". A declarant is the person who owns the freehold or leasehold estate in the land and registers the declaration and description, the documents that create a condominium, and includes that person's successor or assignee (but not a good-faith purchaser of a unit who pays fair market value). A "proposed unit" is land described in an agreement of purchase and sale that provides for delivery of a deed in registerable form after those documents are registered. In plain terms: buying a pre-construction condo from the developer. The Act never says "pre-construction".
Our real estate lawyers handle https://francislawyers.ca/services/real-estate/buying-a-home/condominiums/ and https://francislawyers.ca/services/real-estate/buying-a-home/newly-constructed-homes/.
What the declarant must give you
Under s. 72(1), the declarant must deliver to every person who purchases a unit or proposed unit from it a copy of the current disclosure statement and the applicable condominium guide. Under s. 72(2), the agreement is not binding on the purchaser until the declarant has delivered both.
What the disclosure statement must contain
Section 72(3) requires the statement to give its date and to contain, among other things:
the declarant's name and address and the property's address;
a general description of the property, buildings, units and amenities;
a statement on whether the property may be subject to the Ontario New Home Warranties Plan Act, or whether the declarant has enrolled or intends to enrol it;
the portion of units the declarant intends to market in blocks to investors, and the portion it intends to lease;
a schedule of proposed start and completion dates for unfinished amenities;
a copy of the existing or proposed declaration, by-laws and rules;
a copy of the budget statement.
The table of contents must show where the documents deal with pets, occupancy and use restrictions, and parking (s. 72(4)). The budget statement covers the first year after registration, including common expenses, the projected monthly contribution for each unit type, the reserve fund portion and material pending lawsuits the declarant knows about (s. 72(6)).
Some amendments to s. 72 appear on e-Laws as not yet in force ("on a day to be named by proclamation"). This post does not rely on them.
How the 10 days run
Section 73(2): a purchaser or the purchaser's solicitor must give written notice of rescission to the declarant or its solicitor, "who must receive the notice within 10 days of the latest of":
the date the purchaser receives the disclosure statement;
the date the purchaser receives the applicable condominium guide; and
the date the purchaser receives a copy of the agreement of purchase and sale signed by the declarant and the purchaser.
Three points follow. The notice must be received, not just sent. The clock starts on the latest of the three dates, so a late guide or a late signed copy moves the start. And the Act says "10 days", not "business days".
On counting, the Legislation Act, 2006, s. 89(1), extends a time limit that would otherwise expire on a holiday to the next day that is not a holiday, and s. 88(2) lists the holidays. Whether and how that applies to a particular notice is a question for your lawyer, so do not count on the last day.
After you rescind
The declarant must promptly refund, without penalty or charge, all money received from the purchaser and credited toward the purchase price, with interest at the prescribed rate from the date it received the money until it refunds it (s. 73(3)). Under O. Reg. 48/01, s. 19(3), that rate is 2 per cent per annum below the bank rate at the end of March 31 (for April 1 to September 30) or September 30 (for October 1 to March 31).
The limits
Only before you accept a deed. A pre-construction condo purchaser's right ends on accepting a deed to the unit in registerable form (s. 73(1)).
Only 10 days. After the period in s. 73(2), s. 73 gives no right to rescind.
Not covered here. Resale purchases, assignments, deposit protection, and the new-home warranty regime beyond the statement s. 72(3) requires.
A second right: material change
If there is a material change in the information in a disclosure statement, the declarant must deliver a revised statement or a notice (s. 74(1)). A material change is one a reasonable purchaser, on an objective basis, would have regarded as important enough that the purchaser likely would not have signed, or would have rescinded under s. 73 (s. 74(2)). The definition excludes some changes, for example a change in the portion of units the declarant intends to lease and a change in the schedule for completing amenities that were not yet completed when the statement was made (s. 74(2)(c), (d)). The purchaser may rescind within 10 days of the latest of receiving the revised statement or notice, becoming aware of an undisclosed material change, or a court determination (s. 74(6)).
Practical takeaways
Record the date you received each of the three items in s. 73(2). The latest one starts the period.
Have a lawyer read a pre-construction condo's disclosure statement, declaration and budget statement in full while the period is running.
Our https://francislawyers.ca/services/real-estate/resources/home-buyers-guide/ covers the rest of the purchase.
FAQ
Is there a cooling-off period for a pre-construction condo in Ontario?
The Act calls it a right to rescind. A purchaser who receives the disclosure statement and the condominium guide from the declarant may rescind before accepting a deed in registerable form, by written notice received within 10 days of the latest of three dates (Condominium Act, 1998, s. 73(1)–(2)).
When does the 10-day period start?
It runs from the latest of the date the purchaser receives the disclosure statement, the date the purchaser receives the condominium guide, and the date the purchaser receives the agreement signed by both sides (s. 73(2)(a)–(c)).
Who gives the notice?
The purchaser or the purchaser's solicitor, in writing, to the declarant or its solicitor (s. 73(2)).
Do I get my money back if I rescind?
The declarant must promptly refund, without penalty or charge, all money received from the purchaser and credited toward the purchase price, with interest at the prescribed rate (s. 73(3)).
What if the developer changes the project after I sign?
A material change triggers a revised statement or notice from the declarant (s. 74(1)). The purchaser may then rescind within 10 days of the latest of the dates in s. 74(6), before accepting a deed in registerable form.
Talk to us
Holding a disclosure statement and wondering how much time you have? Speak with a lawyer before you sign and as soon as the disclosure statement and guide arrive. Francis Mehr LLP specializes in real estate law in Ottawa. See https://francislawyers.ca/blog/real-estate-closing-process-ottawa/ and https://francislawyers.ca/blog/do-i-need-an-ottawa-real-estate-lawyer/. Book a consultation: (613) 226-1011 (Mon–Fri, 9 AM–5 PM) or https://francislawyers.ca/contact/
This content is general information about Ontario law as of October 2026. It is not legal advice and does not create a lawyer-client relationship. Laws change and every situation is different. Speak with a lawyer about your specific circumstances. Written by the lawyers of Francis Mehr LLP (Francis Lawyers), Ottawa.
