Key takeaways
- New condominium purchases from a developer have a statutory 10-day cooling-off period tied to receipt of specified documents.
- An estimated occupancy date is not necessarily a guaranteed moving date.
- Interim occupancy and final closing are different stages with different payments.
- Your future mortgage and final closing costs need planning even if the deposit is payable now.
What exactly am I buying before the building exists?
You are entering a contract to acquire the unit when the project reaches the stage at which title can be transferred. The model suite and sales brochure help describe the project, but your legal rights depend on the signed agreement, schedules, plans and statutory protections. [1]
Check the unit’s description, parking and locker rights, measurements, finishes and permitted substitutions. Ask what the builder can change and what remedy, if any, follows a change. A feature mentioned in conversation should not be assumed to be a binding promise.
The agreement may also contain restrictions on renting, assigning the contract or changing the names of purchasers. Raise those plans before signing rather than treating them as options you can arrange later.
Which documents should my lawyer review?
Send the complete package promptly, including:
- The Agreement of Purchase and Sale and every schedule.
- The disclosure statement, proposed governing documents and first-year budget.
- Ontario’s Residential Condominium Buyers’ Guide.
- The condominium information sheet and applicable addendum.
- The statement of critical dates and warranty information.
- Any separate parking, locker, upgrade or incentive agreement. [1, 2]
Your lawyer can check the cooling-off deadline, identify unusual obligations and request amendments while you still have a statutory opportunity to reconsider. A builder’s lawyer acts for the builder; their involvement does not replace your own advice.
How does the 10-day cooling-off period work?
For the relevant developer sale, the statutory period generally runs from the latest receipt of the signed purchase agreement, disclosure statement and condominium buyers’ guide. Written notice must be delivered as required to exercise the right. [2, 3]
Use this period to review the legal documents and financing plan. Do not assume the clock starts only when you first speak to a lawyer, or that a phone call to the sales office is sufficient cancellation notice.
An assignment of someone else’s contract is a different transaction and should not be assumed to carry a fresh automatic 10-day right. Have your lawyer identify the rights that actually apply.
What should I understand about deposits and cancellation?
Builder deposits may be paid in instalments over months or years. Check the due dates, payment method, conditions for release and what happens if an instalment is missed. The Condominium Act generally requires covered purchase payments to be held in trust, subject to its permitted arrangements. Tarion also provides defined deposit protection. [1, 3]
The project may have conditions allowing the builder to terminate, for example if specified sales, financing or approval requirements are not met. Those provisions have deadlines and restrictions. A refund of the deposit does not necessarily compensate you for rising prices, lost opportunities or every expense you incurred.
Verify the builder and vendor through the HCRA’s Ontario Builder Directory. Confirm the home’s warranty position and follow Tarion’s purchase-registration guidance. [4, 5]
Why might I pay occupancy fees before owning the unit?
The builder may permit interim occupancy before the condominium is registered and title to your unit can transfer. During that period, you may be entitled to occupy the unit and required to pay occupancy fees even if you choose not to move in. [1, 3]
The permitted fee generally consists of prescribed interest on the unpaid purchase balance, estimated municipal taxes and projected common expenses. It does not normally reduce the purchase price like mortgage principal payments do.
Final closing happens later, once title can be transferred. That is when the purchase mortgage is normally advanced and the balance, taxes and closing adjustments are settled. Budget for both stages.
What costs and financing risks should I plan for?
Ask for an itemized estimate of the adjustments authorized by the contract, including any capped and uncapped charges. Consider land transfer taxes, HST and rebates, legal costs, occupancy fees, moving costs and possible rent or storage during delays. [6]
Your mortgage situation may change between signing and completion. A pre-approval today does not guarantee the lender will fund years later. The lender may reassess income, debts, the property’s value and its lending criteria. Keep a savings margin and update your financing plan as the project progresses.
About the author — Gathyayini Manoharan
Gathyayini Manoharan is a lawyer licensed by the Law Society of Ontario (LSO #75591T, licensed since 2018) and a Practice Lead at iClosed. Her practice is Ontario residential real estate, and she works on purchase, sale and refinance files from retainer through to reporting. Her Law Society record can be verified at https://lsodirectory.lso.ca/en-US/licensee-detail/?lawsocietynumber=75591T. This article is general information about Ontario law and practice, not legal advice. It does not create a lawyer-client relationship. For advice on your own transaction, speak with a licensed Ontario real estate lawyer.
Sources
- 1. Condominium Authority of Ontario — Pre-construction condos. — https://www.condoauthorityontario.ca/before-you-buy-or-rent-a-condo/buying-a-condo/pre-construction-condos/
- 2. Condominium Authority of Ontario — Condo Buyers’ Guide. — https://www.condoauthorityontario.ca/resource/condo-buyers-guide/
- 3. Condominium Act 1998 — sections 72 to 74 and 80 to 81. — https://www.ontario.ca/laws/statute/98c19
- 4. HCRA — Ontario Builder Directory. — https://obd.hcraontario.ca/
- 5. Tarion — Coverage and claims before you move in. — https://www.tarion.com/homeowners/pre-possession-coverage
- 6. Financial Consumer Agency of Canada — Buying a home. — https://www.canada.ca/en/financial-consumer-agency/services/buying-home.html
This article provides general information about Ontario law and closing practice as of October 26, 2026. It is not legal or tax advice and does not create a lawyer-client relationship. Your agreement of purchase and sale, your lender’s instructions and your own circumstances control what applies to you. Rates, thresholds and rules change — confirm current figures before relying on them.