{"id":18050,"date":"2024-09-13T11:13:32","date_gmt":"2024-09-13T15:13:32","guid":{"rendered":"https:\/\/www.millerthomson.com\/?post_type=insights&p=224440"},"modified":"2025-07-10T18:07:41","modified_gmt":"2025-07-10T22:07:41","slug":"regulations-announced-10-day-cooling-off-period-buyers-freehold-homes-consultation","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/real-estate\/regulations-announced-10-day-cooling-off-period-buyers-freehold-homes-consultation\/","title":{"rendered":"Regulations announced to accompany 10-day cooling-off period for buyers of new freehold homes: consultation period ending soon"},"content":{"rendered":"\n

The Homeowner Protection Act<\/h2>\n\n\n\n

We recently published a bulletin<\/a> on Ontario\u2019s passing of the Homeowner Protection Act, 2024<\/em><\/a>, which, among other things, introduced a 10-day cooling-off period for buyers of new freehold homes (the \u201cCooling-Off Period<\/strong>\u201d). During the Cooling-Off Period, buyers will be able to rescind their agreements of purchase and sale without reason or penalty, similar to the provisions in place for pre-construction condominiums.  The original announcement can be found in our July 25, 2025 bulletin<\/a>.<\/p>\n\n\n\n

Proposed Regulations<\/h2>\n\n\n\n

On July 31, 2024, the Ministry of Public and Business Service Delivery and Procurement (the \u201cMinistry<\/strong>\u201d) announced<\/a> that it is seeking to introduce regulations to govern and guide the Cooling-Off Period. Accordingly, the Ministry has prepared a consultation paper<\/a> to inform community stakeholders and is requesting their feedback on the proposed substance of the upcoming regulations.<\/p>\n\n\n\n

The proposed regulations will prescribe how the Cooling-Off Period will be implemented, including:<\/p>\n\n\n\n

    \n
  1. updating the addenda to agreements of purchase and sale;<\/li>\n\n\n\n
  2. providing for a new information sheet for buyers, which would form part of their agreements of purchase and sale; and<\/li>\n\n\n\n
  3. ensuring that Cooling-Off Periods would only begin after buyers have received copies of:\n
      \n
    1. their executed agreements of purchase and sale;<\/li>\n\n\n\n
    2. the required updated addendum, noted in item 1 above, signed by both the buyer and builder; and<\/li>\n\n\n\n
    3. the information sheet, noted in item 2 above, signed by both the buyer and builder.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n\n\n\n

      The Cooling-Off Period would not apply to the purchase of a new freehold home on a unit in a vacant land condominium or on a parcel of tied land, as these are already covered by the cooling-off period under the Condominium Act, 1998<\/em>.<\/p>\n\n\n\n

      The proposed regulations will also prescribe:<\/p>\n\n\n\n

        \n
      1. a rate of interest that must be paid to buyers who cancel their agreements of purchase and sale within the Cooling-Off Period; and<\/li>\n\n\n\n
      2. the authority of the HCRA to impose administrative penalties of up to $50,000 for builders\u2019 non-compliance.<\/li>\n<\/ol>\n\n\n\n

        Seeking Input<\/h2>\n\n\n\n

        Interested stakeholders are asked to submit any comments they have on the proposal to the Ministry of Public and Business Service Delivery and Procurement by emailing NewHomes@ontario.ca<\/a> no later than September 16, 2024<\/strong>.<\/p>\n\n\n\n

        Miller Thomson will be engaging with the Ministry on the proposed regulations and will continue to monitor this matter for new developments. If you have any questions regarding the Cooling-Off Period, or any other matters pertaining to real property, please contact Miller Thomson\u2019s Transactions & Leasing Group<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

        The Homeowner Protection Act We recently published a bulletin on Ontario\u2019s passing of the Homeowner Protection Act, 2024, which, among other things, introduced a 10-day cooling-off period for buyers of new freehold homes (the \u201cCooling-Off Period\u201d). During the Cooling-Off Period, buyers will be able to rescind their agreements of purchase and sale without reason or […]<\/p>\n","protected":false},"author":1,"featured_media":14383,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[566],"insight-format":[416],"class_list":["post-18050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"acf":[],"yoast_head":"\nRegulations announced to accompany 10-day cooling-off period for buyers of new freehold homes: consultation period ending soon | Miller Thomson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.millerthomson.com\/en\/insights\/real-estate\/regulations-announced-10-day-cooling-off-period-buyers-freehold-homes-consultation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Regulations announced to accompany 10-day cooling-off period for buyers of new freehold homes: consultation period ending soon | Miller Thomson\" \/>\n<meta property=\"og:description\" content=\"The Homeowner Protection Act We recently published a bulletin on Ontario\u2019s passing of the Homeowner Protection Act, 2024, which, among other things, introduced a 10-day cooling-off period for buyers of new freehold homes (the \u201cCooling-Off Period\u201d). 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