${site.data.firmName}${SEMFirmNameAlt}

Consumer Protection: The Cooling Off Period In Real Estate

Under Ontario consumer protection law, certain contracts come with a cooling off period. During this limited time, a purchaser can cancel for any or no reason and receive a refund. The period applies to gym memberships, door-to-door sales and a handful of other contract types. Our post this week looks at the one real estate scenario in which a cooling off period applies. We'll also review other areas in which real estate market participants must proceed without the benefit of this type of consumer protection.

Cooling Off Period For New Condo Purchases

Signing for a new-built condo is the one and only real estate scenario in which the buyer can have a complete change of heart and back out of the deal. But the timeline is tight - within ten days of receiving a fully signed agreement and disclosure from the condo corporation.

Whatever the reason for cancelling, the purchaser must act quickly and correctly. Miss the deadline and the deal will be officially sealed. With such a sizeable investment on the line, working with an experienced real estate lawyer is key.

Listing Or Representation Agreements - Consider Carefully

When a buyer or seller decides to work with a certain brokerage, the broker and client typically sign a Listing Agreement or a Buyer Representation Agreement. Once signed, the parties are bound to follow through for the duration of the contract.

As a signee, make sure you both understand and are comfortable with the services offered, the fees charged, the approach the broker plans to use and all other terms of the relationship.

One clause specifically to be aware of is the holdover clause (a subject we discussed in our last post). This clause puts the client on the hook to pay a brokerage commission under certain circumstances even after the relationship ends.

Agreement Of Purchase And Sale - A Done Deal

The other major real estate contract that consumers encounter is the actual agreement to buy or sell a property. These agreements have no cooling off period. Once signed, they're legally binding (pending the fulfilment of conditional clause such as financing).

Before signing, have an experienced real estate lawyer review the document and ensure that the verbiage minimizes risks and protects your interests.

Buying or selling?

Phone or email us.

Our lawyers can help.

No Comments

Leave a comment
Comment Information

shameless self promotion

  • Quinn Ross Takes Office As President Of The Ontario Bar Association

    The Ontario Bar Association (OBA) is pleased to announce Quinn Ross as the 83rd President of the OBA.

    Ross, Managing Partner of The Ross Firm, with offices in Goderich, Kincardine and Stratford, has been an active member in senior roles on the OBA board since 2012.

    Read More

  • Ross Firm Golf Tourney In Support of Huron Women’s Shelter a Swinging Success

    On behalf of the Huron Women’s Shelter and The Ross Firm P.C., we say “THANK YOU” to our many Sponsors and Donators for their outpouring of generosity and support for the annual Take a Swing Against Violence Golf Tournament held at Goderich Sunset Golf Club.

    Read More

  • Who needs a Will? You do!

    Our guests can explain why. Are you single and renting? A new Family? Or Homeowner? Enjoying your Golden Years? We all need a Will and our guest speakers will show you the why and the way.

    Read More

  • Take a Swing Against Violence

    On June 21, 2017, the Huron Women’s Shelter Second Stage Housing and Counselling Services, Board of Directors and The Ross Firm will be hosting the Taking a Swing Against Violence golf tournament at the Goderich Sunset Golf Course.

    Read More

View All

Send Us An Email. Talk To Us. We Can Help.

To schedule a consultation with one of our experienced lawyers, contact The Ross Firm online or give us a call toll free at 888-567-4917.

Contact Us

Goderich Office
144 Courthouse Square
Suite 100
Goderich, ON N7A 1M9

Toll Free: 888-567-4917
Fax: 519-524-8438
Map & Directions

Stratford Office
1 Ontario Street
2nd Floor
Stratford, ON N5A 3G7

Toll Free: 888-567-4917
Fax: 519-814-5533
Map & Directions

Kincardine Office
943 Queen Street
Kincardine, ON N2Z 2Y8

Phone: 226-396-5532
Fax: 226-396-5533
Map & Directions