Signed a pre-construction condo agreement in Summerhill and now have questions about your cooling-off window? You are not alone. The first few days after signing can feel exciting and uncertain at the same time. In this clear guide, you will learn what the cooling-off period is, how it works in Toronto, and the exact steps to take so you can protect your deposit and your options. Let’s dive in.
What a cooling-off period is
A cooling-off period, sometimes called a rescission window, is a short time after you sign the Agreement of Purchase and Sale when you may cancel the deal. If you cancel within this window, you typically receive a refund of your deposit, subject to the terms in your contract. This period sits right after signing and before your next deposit milestone. It gives you time to review disclosures, confirm financing, and get legal advice.
When the clock starts and how long it lasts
In Toronto’s new-build condo market, many builders provide a short cooling-off window immediately after you sign. In practice, you often see 7 to 10 calendar days. The exact length is set by your Agreement of Purchase and Sale, so always read the clause carefully.
The clock usually starts when you receive a signed copy of the APS and required disclosure documents. Your contract will define what counts as receipt, for example courier delivery or email transmission. Mark the start date and the precise deadline on your calendar.
What to do during the cooling-off window
Use this time to confirm you are fully comfortable with the purchase. A simple checklist helps you stay organized.
- Send your APS and disclosure package to a real estate lawyer for review.
- Confirm the cooling-off clause language, the start date, and the final deadline to rescind.
- Review the deposit schedule, how funds are held in trust, and refund timing if you cancel.
- Ask your lender for a financing check and update your pre-approval if needed.
- Review the assignment clause, including any consent requirements and fees.
- If you plan to rescind, follow the APS instructions exactly, deliver notice in writing, and keep proof of delivery.
For consumer protection and builder obligations, you can also review guidance from Tarion, the Real Estate Council of Ontario, and the Ontario Consumer Protection site.
Deposits and how they are protected
Most Toronto pre-construction condo purchases use staged deposits totaling about 10 to 20 percent of the purchase price over time. A common pattern is 5 percent on signing, then additional installments at set intervals such as 30, 90, 120, or 180 days. Your APS will outline the exact schedule.
Deposits are often held in trust by the builder or in a lawyer’s trust account until closing. Ask your lawyer to confirm how your funds are held and what protections apply if the builder becomes insolvent or fails to deliver. For context on warranty and deposit protection standards, review resources from Tarion.
If you rescind within the cooling-off period, your APS should state when your deposit will be returned. Refund timing may depend on how the funds were received and how they are held in trust.
Assignment rights and why they matter
Assignment means you transfer your purchase contract to another buyer before final closing. Some builders allow assignment with conditions. Others require consent and a fee, or they prohibit assignment altogether. Read your APS carefully and ask your lawyer to explain the process and any minimum hold periods.
If you plan to keep flexibility, assignment terms are key. Builder consent can affect timing and value, and in slower markets assignment demand may be limited. Assignment profits can have tax implications, so consult a tax professional and review Canada Revenue Agency guidance on real property and GST/HST.
Summerhill and Yonge corridor context
Summerhill is a mature central Toronto neighbourhood with limited large-scale new condo supply within its boundaries. Much of the new development activity occurs along major corridors like Yonge Street or through boutique infill projects. Pre-construction units can offer modern layouts and finishes, but timelines can be longer and deposit structures more complex.
Given heritage and planning considerations in this area, approvals can influence project timing. If you want to monitor how planning may affect a project’s schedule, review the City’s planning updates and applications through Toronto Planning and Development.
Pre-construction vs resale timelines
Understanding timelines helps you decide which path fits your move.
- Resale purchase: typical closing is about 30 to 90 days from an accepted offer, subject to conditions.
- Pre-construction purchase: reservation to signing can be quick, while construction and estimated occupancy often range from 18 to 48 months. Boutique infill projects may be on the shorter end, and large towers on the longer end.
- Interim occupancy: you may occupy your unit before final title transfer. Final closing usually happens at registration of the condominium, when land transfer taxes are paid. For municipal land transfer tax details, review the City of Toronto Land Transfer Tax page.
What to verify in your APS
Before you sign, and again during your cooling-off window, work through this quick verification list.
- Cooling-off clause and the exact trigger date that starts the clock.
- Full deposit schedule, how funds are held in trust, and any deposit security statements.
- Whether any administrative fees apply if you rescind and how refunds are processed.
- Assignment clause, including consent requirements, fees, and any minimum hold periods.
- Tarion enrollment and warranty information associated with your project.
Common pitfalls to avoid
- Assuming every project has the same cooling-off length. Your APS controls the deadline, so verify the dates in writing.
- Overlooking deposit risk. Confirm how deposits are held and what protections apply if the builder fails.
- Ignoring assignment limits. If the APS restricts assignment, you may not be able to sell the contract later.
- Missing the rescission procedure. If you plan to cancel, follow the contract steps and keep proof of delivery.
A smarter path to your Summerhill move
You deserve clear advice and a plan that fits your timing, deposit comfort, and long-term goals. Whether you want the certainty of a resale in Summerhill or the fresh finishes of a new build along the Yonge corridor, the right strategy starts with your contract details and local context. If you are weighing your cooling-off options now, a quick conversation can help you proceed with confidence.
For tailored guidance on your APS, deposits, and assignment options, connect with Catherine Mortimer. You will get boutique, concierge-level advice backed by the marketing reach of Chestnut Park and the Eileen Lasswell team.
FAQs
How do Toronto pre-construction cooling-off periods work?
- Most builders provide a short window after you sign when you can cancel and receive your deposit back, but the APS sets the exact length, start date, and procedure.
When does the cooling-off clock start after I sign?
- The clock typically starts when you receive the signed APS and required disclosure package, with the method of receipt defined in your contract.
How quickly do I get my deposit back if I cancel in time?
- Refund timing depends on your APS and how your deposit is held in trust, so confirm steps and timelines with your lawyer.
Can I assign my pre-construction condo if I change plans?
- Only if your APS allows assignment or the builder consents, and consent can include fees, conditions, or timing limits.
What should Summerhill buyers verify before the cooling-off window ends?
- Confirm your cooling-off deadline, deposit security and schedule, assignment rules, Tarion enrollment, and the exact rescission steps to follow.
