Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →On a pre-construction condominium, the Condominium Act, 1998 gives you 10 days to cancel for any reason and receive your deposit back in full. The clock starts on the later of two events: receiving the fully signed agreement of purchase and sale, and receiving the developer’s disclosure statement.
On a new freehold home, a 10-day rescission right was introduced by Homeowner Protection Act, 2024 amendments, proclaimed effective 1 January 2026, running from the latest of the signed agreement, the prescribed information, and the builder satisfying other prescribed requirements. On a resale home of any kind, there is no rescission right at all.
The two rights, precisely
| Pre-construction condominium | New freehold home | Resale | |
|---|---|---|---|
| Right | 10 days | 10 days | None |
| Source | Condominium Act, 1998 | Homeowner Protection Act, 2024 amendments, proclaimed effective 1 January 2026 | — |
| Clock starts | The later of the fully signed agreement or the developer’s disclosure statement | The latest of the signed agreement, the prescribed information, and other prescribed requirements | — |
| Reason required | No | No | — |
| Deposit | Refunded in full | Refunded in full | — |
The disclosure statement is the trigger people miss
On a pre-construction condominium, buyers frequently assume the clock runs from the day they signed in the sales office. It runs from the later of the signed agreement and the disclosure statement. If the disclosure statement arrives a week after signing, the ten days run from then.
That works in your favour when the disclosure statement is late, and it is the reason to note the actual date each document is received rather than relying on memory.
What to have reviewed inside the window
- The agreement of purchase and sale, in full, including the schedules, which is where the substance usually sits
- The disclosure statement, including the proposed declaration, by-laws and rules
- The budget and the first-year common expense estimate
- Occupancy and closing provisions, including interim occupancy fees, which do not reduce the purchase price
- Adjustments and levies payable on closing, and whether any are capped
- Assignment provisions, if you may ever want to assign — and note that GST/HST applies to the entire assignment price on new housing since 7 May 2022
- Tarion coverage applicable to your agreement date, and the Warranty Information Sheet mandatory since 14 July 2025
- The expanded Condominium Buyer’s Guide, mandatory for pre-construction condominium agreements executed on or after 6 August 2025
Material changes after the window
A material change to the disclosure statement can give rise to a further right in defined circumstances. This is technical and fact-specific, and the practical rule is simple: send every amendment you receive to your lawyer the day it arrives, however routine it looks.
What the right does not cover
- Resale purchases. No cooling-off period, at any price.
- Buyer’s remorse after day ten. The agreement binds.
- Market movement. A change in values during construction is not a ground for rescission.
The practical takeaway
Diarise the receipt date of both documents, send them to a lawyer the same day, and treat the ten days as a working deadline rather than a comfort. It is the only window in the entire transaction where you can walk away for nothing, and it closes whether or not you used it.
Frequently asked questions
When does the 10-day clock start on a pre-construction condo?
On the later of the date you receive the fully signed agreement of purchase and sale and the date you receive the developer’s disclosure statement. If the disclosure statement arrives after the agreement, the clock starts from the disclosure statement.
Can I cancel for any reason?
Within the 10-day window, yes. No reason is required and the deposit is refunded in full. After the window closes, the agreement is binding subject to any other rights the agreement or the statute provides.
What if the disclosure statement changes later?
A material change to the disclosure statement can give rise to a further right in defined circumstances. This is technical and fact-specific — raise it with your lawyer as soon as you receive any amendment.
Do I have a rescission right on a new freehold house?
A 10-day right was introduced by Homeowner Protection Act, 2024 amendments proclaimed effective 1 January 2026, running from the latest of the signed agreement, the prescribed information, and other prescribed requirements. Confirm the current provisions with your lawyer for your specific purchase.
Is there any rescission right on a resale home?
No. Ontario provides no cooling-off period on a resale purchase, whether it is a house or a condominium, at any price.
How should I use the 10 days?
Get the agreement and the disclosure statement to a lawyer immediately. Ten days is enough for a proper review only if you start on day one, and the window does not extend because you were busy.
Thinking about buying or selling at the top end?
Send me the address, or the shortlist you are considering. I will tell you what the property is actually worth today, what the land is worth without the house, what the transfer tax and carrying costs will be, and whether the deal makes sense. Confidential, always.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
Related reading
- Pre-construction luxury condos: the risks nobody puts in the brochure
- There is no cooling-off period on a resale home in Ontario
- Tarion warranty on a luxury new build: the limits that surprise people
- Assignment sales in Toronto: the HST trap and the flipping rule
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
- Condominium Authority of Ontario — Status certificates and condominium records
- Miller Thomson — Homeowner Protection Act, 2024 and the new freehold rescission right
- Tarion — Post-possession coverage
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.