Ontario Condo 10-Day Cooling-Off Period (2026 Guide)

Ontario's Condominium Act, 1998 gives every buyer of a new residential condominium unit a ten-day cooling-off period. Under section 73 of the Act, the buyer may rescind the Agreement of Purchase and Sale (APS) at any time within ten days after receiving both the disclosure statement and the signed APS, whichever is later. During those ten days a buyer can walk away in writing for any reason and receive all deposits back. Just as important, a buyer's lawyer can propose amendments to the APS during the ten days, and most Toronto builders will accept reasonable amendments if the buyer has good counsel. The cooling-off period is the single most valuable window in a pre-construction purchase.

Key takeaways

The ten-day rescission right applies only to new residential condominium units (pre-construction), not to resale condos.
The ten-day clock starts on the later of: (a) delivery of the signed APS and (b) delivery of the current disclosure statement, per section 73 of the Condominium Act, 1998.
To rescind, the buyer delivers written notice within the ten days. Deposits are refunded without penalty.
Amendments negotiated during the cooling-off period must be written, signed by both parties, and delivered before the ten days expire.
The cooling-off period is used for lawyer review, financing verification, and amendment negotiation. It is not a due-diligence period in the resale sense, and mortgage approval is not automatically implied.

What the ten-day cooling-off period is
When the ten-day clock starts
What a lawyer reviews during the cooling-off period
How to rescind the agreement
What can be negotiated during the ten days
What happens after day 10
Common risks and misunderstandings
Cooling-off period checklist
Frequently asked questions

What the ten-day cooling-off period is

Section 73 of the Condominium Act, 1998 provides a statutory rescission right in favour of the purchaser of a new residential condominium unit. The purchaser may rescind the agreement of purchase and sale within ten days from the later of:

The day the purchaser received the signed agreement (or the copy of the signed agreement), and
The day the purchaser received the disclosure statement or a material change to the disclosure statement.

The rescission right is absolute: no reason is required, no penalty applies, and all deposits are returned in full (with prescribed interest per Ontario Regulation 48/01).

This right applies only to new residential condominium units sold by the developer. It does not apply to:

Resale condominium units bought from a private seller.
Non-residential condominium units.
Recreational or other exempt condominium categories described in section 172 of the Act.

When the ten-day clock starts

The clock starts on the later of the two triggers described above. In practice, most builder sales offices deliver both documents together, so the clock usually starts on the signing date, with day 10 being the tenth calendar day after signing (not the tenth business day; the Act counts calendar days).

Two important nuances:

If the disclosure statement is delivered after the APS, the clock does not start until the disclosure statement is delivered.
If the disclosure statement is later amended in a material way, the buyer receives a new ten-day rescission right from the date of the material amendment.

Buyers should keep dated receipts for both the signed APS and the disclosure statement.

What a lawyer reviews during the cooling-off period

A pre-construction real estate lawyer will typically review:

The Agreement of Purchase and Sale. Price, deposit schedule, occupancy dates, assignment rights, adjustment caps, closing procedures.
The Tarion Statement of Critical Dates Addendum. Confirms tentative and outside occupancy and registration dates are completed.
The disclosure statement. Budget for common expenses, insurance, restrictions, shared facilities, planned amenities, and building description.
Site plan and floor plans. Suite number, size, exposure, parking, locker, and any easements or crossovers.
Rules and by-laws proposed for the corporation. Rental restrictions, pet rules, short-term rental prohibitions, and any restrictive covenants.
Deposit trust arrangements. Confirmation that the builder's lawyer will hold deposits in trust or provide Tarion-accepted security.
Amendment negotiation opportunities. Which of the buyer's requested amendments the builder will likely accept.

For a full introduction to what a pre-construction lawyer does, see the how to buy a pre-construction condo in Ontario guide.

How to rescind the agreement

To rescind:

Draft a written notice of rescission (usually done by the buyer's lawyer). No specific form is prescribed but the notice must clearly state the intention to rescind under section 73.
Deliver the notice to the builder (or to the builder's lawyer, at the address specified in the APS) before the end of day 10.
Keep proof of delivery (email confirmation, courier tracking, or hand delivery with signature).

Once rescission is effective:

The APS is at an end.
All deposits, with prescribed interest, must be returned to the buyer without penalty.
The buyer walks away with no continuing obligation.

Rescission does not require the buyer to give a reason.

What can be negotiated during the ten days

Not every request will be accepted, but experienced counsel knows which asks tend to work:

Higher caps on development charges and education levies. Builders will sometimes raise a low cap to keep the deal alive.
Cap on Tarion enrolment fee.
Cap on utility hookup fees.
Cap on interim occupancy fees.
Assignment right without consent fee, or with a reduced consent fee.
Right to make additional deposit instalments if it improves the deposit schedule for the buyer.
Deposit schedule adjustments (later dates for later instalments).
Confirmation of parking and locker unit numbers.
Clarification of what happens if the buyer's occupancy date is extended past the outside occupancy date under the Tarion Addendum.
Confirmation of specific finishes or upgrades promised orally at the sales appointment.
Right to rescind if the builder cancels the project.

Any negotiated change must be written into an amendment, signed by both the buyer and the builder, and delivered before the ten-day window closes. Verbal promises from the sales rep are not binding.

[TAL'S PRACTICAL NOTE: Add a two-to-four-sentence example of an amendment you routinely ask for during a Toronto pre-construction cooling-off period, why it matters, and how often builders agree.]

What happens after day 10

Once day 10 passes without a rescission notice, the APS is binding on the buyer. Cancellation after day 10 is only possible if:

The APS or Tarion Addendum gives the buyer a specific cancellation right (rare; some APSs contain a mortgage-approval condition, but the standard builder form typically does not).
A material amendment to the disclosure statement triggers a new ten-day period (rare).
The builder terminates the deal.
The builder cancels the project (in which case Tarion deposit protection or trust refund provisions apply).

Buyers who miss the rescission window and later want to exit are generally in the assignment path. See the Ontario condo assignment sale guide.

Common risks and misunderstandings

"I have ten business days." No. The Act counts calendar days.
"I can cool off any time before closing." No. Only during the ten-day window after receiving the APS and disclosure statement.
"The clock started when I registered." No. It starts on the later of APS delivery and disclosure delivery.
"I don't need a lawyer during the cooling-off period." You should have one. The APS is a lengthy contract with clauses that a non-specialist lawyer will not necessarily flag.
"Verbal promises from the sales rep are binding." They are not. If a promise matters, it must be in a written amendment signed within the ten days.
"The builder always says no to amendments." Not always. Reasonable, specific asks negotiated by an experienced lawyer are often accepted.
"I can extend the cooling-off period." The Act does not provide a right to extend. A buyer who needs more time can rescind and later re-enter into a new APS with the builder if the builder is willing.
"Rescinding will damage my future relationship with the builder." Builders rescind agreements every week; this is a routine legal process, not a personal event.

Cooling-off period checklist

[ ] Kept a dated copy of the signed APS and the disclosure statement.
[ ] Diarized day 10 as a firm deadline in your calendar.
[ ] Sent both documents to your real estate lawyer immediately.
[ ] Reviewed and signed the Tarion Statement of Critical Dates on the APS.
[ ] Requested any needed amendments in writing through the lawyer.
[ ] Received signed amendments back before day 10.
[ ] Confirmed deposit is held in trust or covered by Tarion-approved security.
[ ] Confirmed with your lender that a pre-approval is available at the current qualifying rate.
[ ] Kept a written summary of the lawyer's review with any red flags identified.
[ ] If rescinding: written rescission notice delivered and proof of delivery kept.

Frequently asked questions

How long is the Ontario condo cooling-off period?

Ten calendar days from the later of delivery of the signed APS and delivery of the disclosure statement, under section 73 of the Condominium Act, 1998.

Does the ten days include weekends?

Yes. The Act counts calendar days.

Do I need a reason to rescind?

No. Rescission during the ten-day window is unconditional.

Do I get my deposit back if I rescind?

Yes, in full, with prescribed interest under Ontario Regulation 48/01, and without penalty.

Can I rescind if the disclosure statement is amended after signing?

If the amendment is material, the Act gives the buyer a new ten-day rescission right from the date of the material amendment.

Does the ten-day period apply to resale condos?

No. It applies only to new residential condominium units sold by the developer.

Can I renegotiate during the ten days?

Yes. Any amendment must be documented in writing, signed by both parties, and delivered before the ten-day window closes.

What happens if I decide to cancel after day 10?

The APS is binding. Options are limited to specific cancellation rights in the APS or Tarion Addendum, waiting for the builder to cancel, or attempting to assign the contract (see the Ontario condo assignment sale guide).

Can the builder cancel during the ten days?

The rescission right in section 73 is the buyer's. The builder's ability to cancel is a separate matter, governed by the APS and by the Tarion Addendum.

Conclusion

The ten-day cooling-off period is a rare consumer-protection right in Ontario real estate, and it is remarkably useful when it is used well. Buyers who send their signed APS and disclosure statement to a pre-construction lawyer the day of signing, book a call within 24 hours, and treat the ten days as a live negotiation window get the best outcomes. Buyers who wait until day 8 or 9 to open the paperwork usually miss the opportunity to negotiate.

Call to action

About to sign a Toronto pre-construction APS? Browse current CondoWizard listings, or contact the team to be introduced to a lawyer who reviews pre-construction agreements every week and can complete a full review within your ten-day window.

Sources and last reviewed

Government of Ontario. Condominium Act, 1998, section 73. https://www.ontario.ca/laws/statute/98c19
Government of Ontario. Ontario Regulation 48/01. https://www.ontario.ca/laws/regulation/010048
Condominium Authority of Ontario. Cooling-off period for new condo purchases. https://www.condoauthorityontario.ca
Tarion. Statement of Critical Dates and cooling-off timing. https://www.tarion.com

Last reviewed: 2026-07-25. Statutory rescission mechanics and prescribed interest rates can change. Buyers should verify current information with a qualified Ontario real estate lawyer before rescinding or amending an APS.

Ontario Condo Cooling-Off Period Explained