Condo Purchase – 10 Days Review Period and What to Do NEXT

Condo Purchase – 10 Days Review Period and What to Do NEXT

10 day cooling-off period Pre-construction TorontoSo you bought a NEW, Pre-Construction or JUST constructed Condo directly from the Developer…

CONGRATULATIONS!!!! You made a great choice to own real estate in one of the best places in the world.

Immediately after you signed the Agreement for Purchase you have 10 Calendar Days to do your due diligence. One of the most important steps is to review the contract by an independant lawyer. Condo Agreements for Purchase can be an intimidating read. There are many little intricacies that are best detected, explained, negotiated and resolved by real estate lawyers. And although any real estate lawyer is qualified to review the contract, I’d strongly advise you to look for a real estate lawyer that specializes and deals with pre-construction condos daily. See my recommendations at the bottom.

The law

When you buy a unit in a newly-built condominium directly from a developer,Ontario’s Condominium Act gives you specific protections.

Buyer’s protections

  • when you buy a newly-built condo, you have the right to cancel the purchase within a 10-calendar day cooling-off period (the clock on this 10-day period starts from the time you receive a copy of the fully signed purchase and sale agreement or the disclosure statement, whichever comes later)
  • you also have the right to cancel a sales agreement within 10 days after any “material change” (e.g., a significant change) to the disclosure statement
  • if you exercise your right to cancel, the developer must refund any deposit plus any interest that may be payable
  • if you make a deposit, the developer must make sure that it is held in trust
  • a developer can’t terminate your purchase and sale agreement without your consent or a court order
  • like all new home purchases, newly-built condo units are covered by the Ontario New Home Warranties Plan Act, which is overseen by Tarion Warranty Corporation

IN SUMMARY

Reviewing and Understanding the contract is NOT what you’d do at the Sales Center at the time of sale! Many times you find yourself in the middle of a sales event, surrounded y many other buyers trying to get that BEST DEAL. This is not the time and place to review the contract and to fully understand what you are signing. The ONLY thing you need to make sure is that you have the 10 day cooling-off period. Real Estate Sales Agents and Sales Center representatives can not and should not be the ones giving you advice and recommendations on the Contract to Purchase. That is the Lawyer’s job!

  • The next day you will submit an electronic copy of your entire Agreement to Purchase.
  • A Lawyer will review it and schedule an appointment to review it with you
  • The Lawyer may or may not make recommendations and work with the Developer to make amendments as necessary

Your DEPOSIT will not be cashed during the 10 day cooling-off period and you can have it back entirely if you decide not to proceed with the purchase within those 10 Calendar days.

You can do your own search for Lawyers that specialize in condominium and pre-construction purchases. Some may do the reviewing of Agreement free of charge provided that you close the transaction with their office.

I’d recommend couple to make this easy for you HOWEVER you should only go to and work with professionals of your own choice!

Real Estate Lawyers:

  • Kristy Strong – 416-203-6347 – www.WeAreLaw.ca – downtown Toronto
  • Ania Swaider – 905-273-6333 – www.swiderlaw.com – Mississauga

**********************

Todor Yordanov is a Real Estate agent who works in the GTA market. A pre-construction and investment properties expert Todor is frequently invited to talk about real estate on various media channels such as radio, TV and print. His book on Real Estate – “Real Estate – It’s NOT for you!” became #1 Best Seller on Amazon the moment it was published. Todor also educates and shares experience and ideas with his Real Estate Club – http://RealEstateNetworkToronto.com/