Accueil / Homeowner Protection Act, 2024: New freehold home 10 day cooling-off period

Homeowner Protection Act, 2024: New freehold home 10 day cooling-off period

( Disponible en anglais seulement )

25 juin 2024 | Mario Concordia, Abby Sasitharan, Robert J. Gray

This is a notice that the Homeowner Protection Act, 2024 (the “Act”) has received Royal Assent, and is now in effect.

Overview

The Ontario government passed the Act on Thursday, June 6, 2024. The stated aim of the legislation is to strengthen protections for homeowners and buyers of new freehold homes. Notably, the Act introduces a 10-day cooling-off period for buyers of new freehold homes, in an effort to provide buyers time to review purchase agreements so that informed decisions are made.

Although the Act came into force on June 6, 2024, certain provisions will only come into effect upon proclamation at a later date – including the new freehold home cooling-off period. Therefore, the cooling-off period for new freehold homes is yet to take effect.

The cooling-off period

Once the cooling-off period for new freehold homes comes into force, purchasers will be able to rescind their purchase agreement within 10 days of receiving the latest of: the fully executed agreement of purchase and sale, all prescribed information relating to the purchase, the fulfillment of any requirements set out by the prescribed documents.

Uncertainty and what is to come

The « prescribed » information and requirements set out in the amendments, found in « Schedule 1 » to the Act, are not described or identified. It is therefore anticipated that the Government will introduce regulations similar to those introduced upon enactment of the three-day cooling-off period in British Columbia,  to expand on these provisions and clarify areas of uncertainty. Currently, the cooling-off period under Ontario’s Condominium Act, 1998 begins once the purchaser receives (1) the disclosure statement, (2) the condominium guide, and (3) the fully executed agreement of purchase and sale. A similar approach accompanied by guiding regulations are expected with respect to new freehold homes in Ontario in the coming months.

RESOURCES

Homeowner Protection Act, 2024: https://www.ontario.ca/laws/statute/s24018

Condominium Act, 1998: https://www.ontario.ca/laws/statute/98c19#BK174

Proclamation Tracker: https://www.ontario.ca/laws/proclamations

Stay tuned for our upcoming in-depth article on the Homeowner Protection Act, 2024!

Stay informed

Avis de non-responsabilité

Cette publication est fournie à titre informatif uniquement. Elle peut contenir des éléments provenant d’autres sources et nous ne garantissons pas son exactitude. Cette publication n’est ni un avis ni un conseil juridique.

Miller Thomson S.E.N.C.R.L., s.r.l. utilise vos coordonnées dans le but de vous envoyer des communications électroniques portant sur des questions juridiques, des séminaires ou des événements susceptibles de vous intéresser. Si vous avez des questions concernant nos pratiques d’information ou nos obligations en vertu de la Loi canadienne anti-pourriel, veuillez faire parvenir un courriel à privacy@millerthomson.com.

© Miller Thomson S.E.N.C.R.L., s.r.l. Cette publication peut être reproduite et distribuée intégralement sous réserve qu’aucune modification n’y soit apportée, que ce soit dans sa forme ou son contenu. Toute autre forme de reproduction ou de distribution nécessite le consentement écrit préalable de Miller Thomson S.E.N.C.R.L., s.r.l. qui peut être obtenu en faisant parvenir un courriel à newsletters@millerthomson.com.