Beginning January 1, 2027, new requirements from the Home Construction Regulatory Authority (HCRA) will make Ontario’s new home purchase agreements clearer for buyers and require industry professionals to update their practices.
What’s Changing?
Some of the changes coming include the introduction of a 10-day cooling off period, new mandatory information sheets and updated addenda that must be included with Agreements of Purchase and Sale (APSs).
1. Introduction of a 10-Day Cooling-Off Period
Purchasers now have a new 10-day cooling-off period, and it’s important to use it properly!
This extra time was designed to give buyers additional time to review their purchase agreement, get legal advice if needed, and make sure they fully understand the financial and legal implications of their purchase before becoming bound by the agreement.
Be careful though as this new 10-day period does not apply to everyone. Agreements signed before January 1, 2027, as well as certain vacant-land condos and construction contracts, may be excluded. Double check what date you entered into your agreement, as even if you closed on or after January 1, 2027, if you signed beforehand, you are not covered.
The 10-day period begins once you have received a copy of all of the following:
| New Freehold Homes | 1. the Information for Buyers of New Freehold Homes document signed by the Purchaser and their Vendor; 2. the required Addendum signed by the Purchaser and the Vendor; and 3. the Purchase Agreement entered into by the Purchaser and the Vendor. |
| New Freehold Homes on Parcels of Tied Land | 1. the disclosure statement; 2. the applicable condominium guide; and 3. a copy of the Purchase Agreement entered into by the Purchaser and the Vendor |
| New Vacant Land Condominium Homes | 1. the disclosure statement; 2. the applicable condominium guide; and 3. a copy of the Purchase Agreement entered into by the Purchaser and the Vendor |
| New Condominium Homes | 1. the disclosure statement; 2. the applicable condominium guide; and 3. a copy of the Purchase Agreement entered into by the Purchaser and the Vendor |
In each case, the Purchaser can then cancel their Purchase Agreement without penalty or charge during the 10 days by informing the Vendor in writing. If the Purchase Agreement is cancelled during the 10 days, the Vendor must promptly refund moneys paid. In some cases, interest might be included.
2. New Information Sheets
Up until now, mandatory information sheets have mainly been associated with condominium purchases. However, those disclosure requirements will expand significantly.
The HCRA will require sellers to include prescribed information sheets for:
- New Freehold Homes – For the first time, buyers of new freehold homes will receive a standardized information sheet summarizing key details about the transaction and outlining important purchaser rights.
- Freehold Homes on Parcels of Tied Land (POTL) – POTL developments often involve shared maintenance responsibilities and ongoing obligations relating to common elements. The new information sheet is intended to help purchasers better understand these unique ownership arrangements before signing an agreement.
- Vacant Land Condominium Homes – Buyers of vacant land condominium units will receive a dedicated information sheet that explains the legal framework and considerations specific to these types of developments.
Updated Condominium Information Sheet – The condominium information sheet currently in use will be replaced with an updated version. Agreements entered into before that date will continue to use the existing form.
3. New Mandatory Addenda
The HCRA has also released updated addenda that must accompany purchase agreements entered into on or after January 1, 2027. Separate addenda have been prepared for:
- New freehold homes;
- New condominium homes;
- New freehold homes on parcels of tied land; and
- New vacant land condominium homes.
Each category includes forms tailored to transactions with either firm or tentative occupancy or closing dates. This distinction is important because delay rights, purchaser remedies, and builder obligations may change depending on the nature of the occupancy or closing schedule.
Looking Ahead
With expanded disclosure requirements, new standardized forms, and a cooling-off period for freehold home buyers, Ontario is placing a greater emphasis on transparency and consumer protection.
Builders, developers, sales teams, and industry professionals should use the time between now and January 1, 2027, to familiarize themselves with the new requirements and prepare for a smooth transition.
This blog is for informational purposes only and should not be considered legal advice. If you have questions about these upcoming changes or how they may affect your project, business, or transaction, please contact our Real Estate team in Ottawa or Perth. We’d be happy to help!
This blog post was written by Carly Baldachin, Articling Student, and Daniella Sicoli-Zupo, a Partner in the real estate team. Daniella can be reached at 613-369-0378 or at [email protected].
