What is the 10 Day Cooling Period when Buying a Pre-Construction?
The 10 days rescission period is also known as the ‘cooling off’ period, or ’10 days cooling period’.
By law, developers give all buyers 10 days to review the Agreement of Purchase and Sale, and all other pertaining documents with a lawyer. During this time you are also given the opportunity to get a pre-approval for a mortgage.
The 10 day cooling period is advantageous to buyers for a number of reasons. Along with being able to review the documents and apply for a pre-approval, you are also able to back out of your purchase with no penalties. Any cheques that were submitted when signing for the unit will be returned to the buyer without penalty, if they choose to cancel their purchase.
Some prospective buyers may naturally have some apprehension when purchasing a pre-construction condo. When dealing with platinum access, you are getting first access to units and the most exclusive pricing. Because of the nature of pre-construction condo sales, many of the best units will be bought very quickly. It can be important to move fast to secure a desired unit, and use the 10 day cooling off period to review the purchase carefully and to ensure you will be able to meet the requirements of purchase moving forward.
This information is provided for general information purposes only and is not to be relied upon or construed as legal, real estate, or other professional advice or opinion. We do not make any representations or warranties, express or implied, as to the information provided. Under no circumstances shall we have any liability of any kind for the accuracy, use, or otherwise, of this information, all of which is provided. Any reliance you place on such information is strictly at your own risk and liability. Clients are strongly urged to seek professional advice on specific issues.
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