What’s the 10 days cooling off period?
What is the 10 days cooling off period rule?
When we talk about a new condo purchase, we are talking about an investment, and a significant one.
It is the kind of decision that you cannot make lightly but you can only make after a careful consideration. That’s why, in the steps for the purchase, you have what you call the 10 days cooling off period.
Maybe you have already heard about the 10 days cooling off period, but do not know how it works. This article will help you know what it is and how it works.
You can also consult our FAQ page for more questions about how pre-constructions condos work.
How does the 10 days cooling off period works?
The law requires from the constructor to give you, as a buyer a 10 days period for them to take time to examine the sales contact, as well as the other documents related to the transaction.
It is recommended to have a lawyer’s assistance during this process in order to know if there is anything that are not standard in the contract.
This time is given then for you to also get a mortgage loan if needed, and to have time to wait for the approval of the loan, but not only for that. Builder can also wait that the 10 days period is firm before you shop for a pre-approval mortgage.
10 days to make the right decision
This cooling off period is undoubtedly set to help you as a buyer so that you can have the opportunity to take a closer look to the documents and to withdraw in case you change your mind or you are uncomfortable with some elements of the contract that the lawyer has pointed out.
No penalty during those 10 days
If the buyer withdraw within these 10 days, the purchaser won’t pay any penalty and that protects him. And in case he withdraws, if he has paid any upfront payment of any amount, these amounts will be repaid to him in total. This allows you to be safe.
Some other buyers may be reluctant when it comes to pre-construction condo purchase. Depending on your type of subscription, you can access units with exclusive prices.
Because of the nature of the pre-construction purchase, most of the best units are quickly reserved and even purchased before the others. So you need to be quick in identifying the best locations (depending on what suits you according to the purpose of the purchase), and best units.
Otherwise, you can also register to receive regular newsletters as well as suggestion of new pre-constructed condos and receive notifications each time there are interesting new deals.
It is important to act quickly when you find a nice spot that meets your needs. You can quickly book it and then use your 10 days cooling off period to consider the details of the deal. During this period, you can with your lawyer review all the terms of the contract.