New cooling-off period rules for new freehold home purchases take effect under home construction licensing law

Plain-language summary · AI-assisted

A new regulation establishes how a statutory cooling-off period applies to purchase agreements for new freehold homes. The cooling-off period does not apply to agreements signed before January 1, 2027, to homes on units in vacant land condominium corporations, to homes on parcels of tied land in common elements condominium corporations, or to construction contracts. For agreements that do fall within scope, vendors must deliver two specific documents to purchasers — an addendum or information sheet and a related document — and both the vendor and purchaser must sign those documents for the cooling-off period to run. Builders and vendors selling new freehold homes should review their standard transaction processes to ensure the required documents are prepared, delivered, and signed as prescribed.

Who this affects
new home builders and vendors · purchasers of new freehold homes · real estate and construction lawyers advising on new home sales · home construction licensees