FACT OR FICTION?

All real estate contracts have a cooling off period.

Fiction

In Ontario, consumer protection legislation provides a “cooling off” period for certain types of contracts, during which the consumer can change their mind and cancel the contract without penalty. An important example of this is the contract to purchase a newly-built condo from the builder.

In that case, your client can cancel the purchase within 10 calendar days of receiving the fully signed purchase agreement and disclosure statement from the condo corporation.

Because of the short timeline and steps required in the process, a buyer that wants to take advantage of the cooling off period should work with their lawyer to get the wheels in motion well in advance of the 10 day deadline. Ideally, the buyers should have their lawyers review the contract before signing it.

For other types of real estate contracts, however, there is no cooling off period.

Reference: Reco's Ask Joe Column