[Rocky]

Like it happens with pre construction Condo where the purchasing party has 10 days of cooling period to back out, while purchasing a free hold town home would that still be 10 days cool down period by default or doest it only apply to new condos ? Please share. Thanks

 

[ISYM]

Hi Rocky. No there is no legal requirement for a cooling off period. Many builders do include the clause in their standard agreement of purchase and sale however they've been known to cross it off particularly if the project is popular. Always demand a written condition for your lawyer to review 3-5 days minimum where at least two fall during the week because their agreements include items you are required to pay for on closing such as development and connection fees, payment of their mortagage and others. While these charges are normal it can be a shock to find that they've either not been capped, overages are non-refundable or excessive enough that upon closing you're faced with a horrendous bill which you may not have budgeted for.

The lawyer will review these and all of their other clauses to ensure you've not being disadvantaged and advise you accordingly.

Simple rule of thumb, you're signing a contract drawn up by the builder in the builder's favour, don't expect them to protect your interests above their own.

 

[neubilder]

Hi Rocky. No there is no legal requirement for a cooling off period.

Wrong. There is a legal 10 day window wherein anyone can renegue on a new condo purchase.

See:

http://www.sse.gov.on.ca/mcs/en/Pages/Your_Consumer_Rights.aspx

 

[Rocky]

Wrong. There is a legal 10 day window wherein anyone can renegue on a new condo purchase.

See:

http://www.sse.gov.on.ca/mcs/en/Pages/Your_Consumer_Rights.aspx

That would mean this only applies to Condos, how about freehold towns ? Do the builder have free play to choose for adding or not adding the cool off period in the contract ?

As if it is not in the contract - that would mean i don't even have time to get my lawyer to review the contract ?? (Excuse me if this sounds stupid) unless i have him with me as once i sign it - its done, how would it matter if the lawyer was to disagree with something on the contract if i did not have cool down period to back out or counter back with recommendatory on contract amendment suggestions to the builder ?

 

[ISYM]

The question was not about condos, it was about freeholds and my answer stands.

Wrong. There is a legal 10 day window wherein anyone can renegue on a new condo purchase.

See:

http://www.sse.gov.on.ca/mcs/en/Pages/Your_Consumer_Rights.aspx

 

[neubilder]

The distinction is between new units sold by a builder/developer vs resale units sold by an individual. Not the type of tenure. I'm quite sure the 10 day period applies irrespective of whether it's a green condo or a red townhouse.

 

[ISYM]

The distinction is between new units sold by a builder/developer vs resale units sold by an individual. Not the type of tenure. I'm quite sure the 10 day period applies irrespective of whether it's a green condo or a red townhouse.

I think you’re just having a little fun with us because if as your name implies you are a builder, I can’t see you not knowing the difference between a condominium and a freehold property.

Or are you assuming that because there is such an animal as a “freehold condominium” they are all freeholds? In case you’re not teasing, and don’t want to believe me, how about CMHC?

The cooling off period is a requirement of the Condominium Corporations Act. If you truly believe that freeholds as defined by CMHC below are also subject to such a condition, perhaps you’d be so kind to provide the name of the act.

In either event since OP is getting conflicting information, they might want to contact a lawyer for the definitive answer. And by the way, the only difference between a cooling off period for new or resold (aonly applicable to condos) is if on the resale the offer does not include the requirement for review of the status certificate. On new condomiums of any stripe the cooling off period is a must.

Forms of Ownership
People who do not rent their home, own it. There are two forms of ownership.
Freehold
Freehold means that one person (or two, such as joint ownership by spouses) owns the land and house outright. There is no space co-owned or co-managed with owners of other units.
Freehold owners can do what they want with their property — up to a point. They must obey municipal bylaws, subdivision agreements, building codes and federal and provincial laws, such as those protecting the environment.
Detached and semi-detached homes, duplexes and townhouses are usually owned freehold.
Condominium
Condominium ownership means you own the unit you live in and share ownership rights for the common space of the building. Common space includes areas such as corridors, the grounds around the building, and facilities such as a swimming pool and recreation rooms. Condominium owners together control the common areas through an owners’ association. The association makes decisions about using and maintaining the common space.
Condominium ownership is ownership of a unit, usually in a highrise but can also be a townhouse or in a lowrise.
http://www.cmhc-schl.gc.ca/en/co/buho/hostst/hostst_003.cfm

And about sales contract for Freeholds vs Condominiums

In addition to financing, a contract can include other conditions to protect your interests. For instance, you will want your lawyer/notary to review the contract before you sign. Some builders' agreements contain a standard clause to that effect; in other cases, you may have to add a condition in the body of the main document or as an attachment.
http://www.cmhc-schl.gc.ca/en/co/buho/buho_004.cfm

 

[neubilder]

Yep, I was wrong. The fact that many new townhouses in the downtown core are structured as condominiums and would be subject to the 10 day period is what threw me.