As per the Ontario Condominium Act, each developer has certain restrictions and rules to follow that are in place protect you, the consumer. When you buy a newly-built condo direct from the developer, you have the right to cancel the purchase within a 10 calendar day cooling-off period. This was put in place so when on launch day you get all caught up in the hype and excitement, you are still able to make sure you don't have any buyers remorse. Just remember that there is no cooling off period on re-sale condominiums.
Things to be aware of:
- The clock on the 10 day period starts from the time you receive a copy of the fully signed purchase and sale agreement OR the disclosure statement, which ever comes later.
- You also have the right to cancel a sales agreement within 10 days after any "material change" (significant change) to the disclosure statement.
- If you decide to cancel, the developer must refund any deposit plus any interest that may be payable.
- A developer is not able to terminate your purchase and sale agreement without your consent or a court order.
During the 10 day cooling off period we highly suggest that you:
- Have your lawyer to review the agreement and discuss any concerns that you might have about the purchase or the agreement. This is the time to request any changes to the agreement, not once the cooling off period is over.
- Speak to your mortgage broker and ensure you are pre-approved for the purchase. Keep in mind the closing date and get in writing that they are able to do a rate hold till your closing. Not all mortgage brokers and banks are able to do long rate holds for pre-construction condos in Ottawa.
More questions? I would love to help you find the answer! Contact Matt.
