Ontario's New 10-Day Cooling-Off Period for Freehold New Builds Starts January 1, 2027

Who qualifies

Does every Ontario new-build buyer get 10 days?

No. Ontario Regulation 290/26 applies the new cooling-off rules to qualifying purchases of new freehold homes.

That means the date you enter into the agreement still matters. Signing in December 2026 and closing in 2027 does not give that agreement the new freehold cooling-off right simply because the closing date falls in 2027.

When the clock starts

The 10 days do not necessarily start the moment you first sign

For a qualifying freehold purchase, the law measures the 10-day period from the latest of three events:

1. You receive the prescribed information. That includes the required new-home information and applicable addendum.
2. The prescribed documents are signed. Ontario Regulation 290/26 requires the documents delivered to the buyer to be signed by both the vendor and purchaser.
3. You receive the fully executed purchase agreement. The agreement needs the signatures of both sides. The 10-day calculation uses whichever of these required events happens last.

So if you sign something at the sales centre but the builder has not yet signed, or the required information has not been properly delivered and completed, the statutory cooling-off clock may not have started yet.

If you change your mind

How does a buyer use the cooling-off period?

The purchaser has to give the vendor written notice of rescission within the statutory 10-day period.

If the agreement is properly rescinded under the new rule, the vendor must promptly return the money it received from the buyer and credited toward the purchase price. The legislation says that refund is made without penalty or charge and includes interest calculated at the prescribed rate.

I would not improvise the cancellation notice or assume a text message to the sales representative is enough. If you are using the cooling-off right, have your lawyer confirm the notice, recipient and deadline.

Use the 10 days properly

What would I actually do during the cooling-off period?

Ten days gives you useful breathing room, but I would not waste it. This is when I would make sure the deal still works after the excitement of the sales centre wears off.

• Have your lawyer review the full APS, addendum, schedules and adjustment clauses
• Confirm financing, deposit requirements and lender expectations
• Check the builder and vendor through the Ontario Builder Directory
• Review HST assumptions, incentives and development-charge wording
• Check assignment restrictions, critical dates and builder change rights
• Compare the project with resale homes you could buy for similar money
• Decide whether the timeline and uncertainty still fit your actual move

I would still rather have a lawyer involved before signing when that is practical. The cooling-off period gives qualifying buyers another layer of protection, but it is not a reason to sign something you have not tried to understand.

Where the new forms fit

The paperwork matters because it helps start the protection

The new freehold information sheet and addendum are prescribed documents under the cooling-off rules. They have to be completed, signed and included as required.

Tarion's current buyer update says that, for new freehold purchases, the information sheet and addendum must be completed and included as part of the agreement delivered to the buyer for the agreement to be binding on the buyer and for the cooling-off period to begin.

The addendum also remains important for a separate reason. It contains the critical dates and delayed-closing rules that can matter months or years later if the builder's timeline changes.

So yes, I want the right documents. But the reason I care is because they affect your rights, deadlines and obligations. The form name itself is not the useful part.

What about condos?

Condo buyers already have a separate 10-day cooling-off period

Ontario condominium purchases already operate under a separate rescission provision in the Condominium Act.

That condo period is tied to the required condominium disclosure material, the condominium guide and the executed agreement. It is not the same statutory pathway as the new freehold rule starting in 2027.

If you are buying a condominium, I would treat the condo documents and deadlines as their own process rather than trying to apply the new freehold rule to them.

After the cooling-off period

Do not assume you can simply cancel later

Once the applicable statutory cooling-off period expires, your options depend on the purchase agreement and the circumstances.

A financing problem, appraisal issue, change of mind or delayed closing does not automatically give you another general right to walk away. That is where the actual contract and legal advice matter.

If the builder later asks you to sign an amendment changing dates or other rights, I would have your lawyer review it before you agree to the change.

Where I fit

My job is to help you use the 10 days well

I can review the project from the real estate side, compare it with resale options, look at the price and incentives and flag costs or terms that deserve another question.

I can flag legal issues, but your lawyer needs to answer them. Financing belongs with your lender or mortgage professional, and tax treatment may need a qualified tax professional.

If you have a builder or project in mind, send me the price sheet and whatever agreement material you have. I can help you work through the real estate decision while you still have time to make one.

Common questions

Ontario's new freehold cooling-off period