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WHAT IS THE COOLING-OFF PERIOD FOR THE PURCHASE OF PRE-CONSTRUCTION CONDOMINIUMS IN ONTARIO?
In Ontario, the Condominium Act permits buyers of a pre-construction condominium to rescind an agreement of purchase and sale without legal or financial penalty within 10 days from the date of signing the agreement. Upon receipt of the buyer’s notice of rescission, the builder or builder’s solicitor must refund all money received from the buyer under the agreement, with interest. [1] Since the cooling-off period is only 10 days, it is important to have an experienced real estate lawyer promptly review the agreement of purchase and sale to ensure its terms are not drafted at the disadvantage of the buyer. Due to the buyer’s ability to rescind the contract during the cooling-off period, the buyer or his representatives may be in a better position to negotiate certain terms of the contract with the builder during this period. For example, the buyer’s lawyer or real estate agent may suggest that the builder remove or reduce any assignment fees payable to the builder in the event of the assignment of the contract by the buyer. Similarly, the buyer may request that certain adjustments set out in the agreement of purchase and sale be either removed or capped to their advantage. As communication between solicitors may be time-consuming, we suggest you contact a real estate lawyer upon receipt of the agreement of purchase and sale to ensure your lawyer has sufficient time to communicate with the builder’s solicitor.
If you are looking to buy a pre-construction condominium, contact us today to set up an initial consultation where a member of our real estate law team will answer any questions you may have about the transaction and your rights and obligations during the recession period.
Disclaimer:
The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us.
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References:
1. Condominium Act, s. 73(3).
About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.
