Is There a 10 Day ‘Cooling Off’ Period When I Buy a Home in Ontario?

In Ontario, there are many industries that either give you the ability to back out of transaction within a certain timeline or are legally required to, for example:

• 24 hours after booking a flight
• 2 days for payday loans
• 10 days for door-to-door sales and home service contracts
• 10 days for a gym membership ($50 or more paid in advance)

But what about real estate?

Yes…. And no.

If you are buying a pre-construction condo directly from a builder you do have a 10-calendar day period, often called a “cooling off period”, to review your contract documents. If you choose to cancel the agreement you are not required to give reason for doing so and there are no financial penalties; you are completely protected by Ontario law. These 10 days are best used to do your due diligence on the project before being locked in.

But what about a re-sale home? When you buy a residential re-sale home you do not have that cooling off period, once a transaction is firm (no conditions) then you are legally required to fulfill the contract or risk losing your deposit and/or further legal ramifications. The closest option you have to a ‘cooling off period’ is if you have any conditions in the offer (financing, home inspection, etc) then you can back out of the transaction if a problem with one, or all, your conditions arise.

Nearly half of the newly built homes in Ontario are condominium units, if you are considering buying a condo you should know that buying a condo is different from buying a house or any freehold unit and comes with different rights. There is a guide available that will walk you through what you should know before you purchase a condominium, the roles and responsibilities of owners and condo boards, how owners can resolve condo-living issues, and other important information you should know.

Landowners or developers of residential pre-construction and new condo units are required to provide buyers with the guide and this is why it is important to meet with a real estate lawyer specializing in pre-construction to review your contract in your 10 day period. Your 10-day period starts once you receive your contract documents, not when you sign.

This is also why it’s important to ensure that the realtor you are working with has your best interests at the forefront throughout your whole journey if you are looking to buy a resale home. You want to know that the agent is

1. Not just ‘an order taker’ but advising you on how to proceed.
2. Listening to you
3. Showing you everything possible, including for-sale-by-owners, off-market, exclusive listings, etc
4. Working for you!