Void Your Pre-Construction Condo Agreement Ontario
🤖 Quick Answer
In Ontario, a pre-construction condominium agreement is not legally binding on the buyer until the builder has delivered three documents: the signed Agreement of Purchase and Sale, the disclosure statement, and the Residential Condominium Buyers’ Guide published by the Condominium Authority of Ontario.
If the builder fails to deliver any of these documents, the 10-day cooling-off period under section 73 of the Condominium Act, 1998 is never triggered — meaning the buyer may retain the right to rescind the agreement at any time, regardless of how long ago it was signed.
The 2026 Ontario Superior Court ruling in DiCenzo (Linden Park) Holdings Inc. v. Sadeghyar (2026 ONSC 1566) confirmed this principle: a builder who did not provide the Buyers’ Guide could not enforce the agreement or retain the buyer’s deposit.
A buyer who successfully rescinds for non-delivery of disclosure documents may be entitled to a full refund of the deposit, plus interest, with no further liability to the builder.
This right may apply even if closing was missed, the unit was resold, or years have passed — but each case turns on the specific disclosure package and delivery evidence; a real estate litigation lawyer should be consulted immediately.
Why Ontario Pre-Construction Buyers Are Re-Reading Their Agreements in 2026
Thousands of Ontario buyers signed pre-construction condominium agreements when property values were climbing. Many paid deposits of $100,000 or more for units that haven’t been built yet. Then the market shifted. Prices dropped. Lenders tightened. And for a lot of buyers across Toronto, Scarborough, Mississauga, and the broader GTA, the gap between what they agreed to pay and what their bank will finance has become impossible to bridge.
If you’re in that position, you may have been told your only options are to close, lose your deposit, or find an assignment buyer. But a landmark April 2026 Ontario Superior Court ruling has changed the conversation entirely. In DiCenzo (Linden Park) Holdings Inc. v. Sadeghyar, the court declared a pre-construction condo agreement completely unenforceable — because the builder never delivered one required document. The buyer got their full deposit back, with interest. The builder’s claim for damages was dismissed.
Before you assume your Agreement of Purchase and Sale (your purchase contract) is a done deal, there is a question worth asking: did your builder actually give you everything the law requires? This article explains exactly what that means — and what your options may be if they didn’t.
Does This Apply to You? A Quick Situation Check
Not every buyer who is struggling to close has a disclosure-based rescission argument. Before anything else, check your situation against the two columns below. This is not legal advice — it is a starting filter. A lawyer will need to review your actual documents to give you a definitive answer.
✔ Your situation MAY qualify
- You cannot find a copy of the Residential Condominium Buyers’ Guide in your signing package
- You have no signed receipt or email confirmation showing the Buyers’ Guide was delivered
- The builder sent you their own project brochure but not a CAO-issued guide
- Your agreement was signed but you were never given a full disclosure statement
- You signed several years ago and the deal has not yet closed
- The builder is currently suing you for your deposit or damages
✘ Your situation likely does NOT qualify
- You have a signed receipt confirming you received all three required documents at signing
- You want to exit because the market dropped, but your disclosure package was complete
- You already rescinded within the 10-day cooling-off period
- Your agreement was for a freehold new home, not a condominium unit
- You signed a mutual release with the builder
If your situation falls in the left column, read on. The law may have created an exit you haven’t yet explored.
What the Law Actually Requires: Three Documents Every Builder Must Provide
Under Ontario law, a pre-construction condominium agreement does not become binding on the buyer until the builder has properly delivered a specific package of documents. This rule comes from sections 72 and 73 of the Condominium Act, 1998, S.O. 1998, c. 19 — the provincial statute that governs all condominium purchases in Ontario. Until all three required documents are delivered, the 10-day cooling-off period never begins, and the agreement may not bind the buyer.
The Disclosure Statement
The disclosure statement is a document the builder must give you describing the condominium project in detail. It covers the financial status of the project, the projected budget for the condominium corporation, any shared facilities, the rules and by-laws that will govern the building, and anything else a buyer would need to make an informed decision. Section 72(1)(a) of the Condominium Act requires the builder to provide this before the agreement can be considered binding. A disclosure statement that is incomplete or materially misleading can also give rise to rescission rights, separate from the Buyers’ Guide issue.
The Residential Condominium Buyers’ Guide
The Residential Condominium Buyers’ Guide is a standardized document published by the Condominium Authority of Ontario (the CAO — a provincial body that oversees condo governance and consumer protection). Under section 72(1)(b) of the Condominium Act, the builder must give buyers this specific CAO-issued document. It is not optional, and it cannot be substituted. A builder’s own project brochure, a glossy marketing booklet, or a document labelled “Condominium Information” does not satisfy this requirement. The Guide carries CAO branding and is available free of charge at condoauthorityontario.ca — if you have never seen that document, you may not have received it.
The Executed Agreement of Purchase and Sale
The third required document is a copy of the Agreement of Purchase and Sale (APS) that has been signed by both you and the builder. Section 73 of the Act provides that the 10-day cooling-off period begins only after you have received all three documents, with the clock starting from the date the last of the three arrives. For a practical overview of what a complete closing document set should look like, see our closing document checklist. If the Buyers’ Guide was delivered last, that is the date the 10-day window opened — and if it was never delivered, the window may never have opened at all.
Nihang Law Professional Corporation
What Triggers the 10-Day Clock?
All three statutory documents must be received before the cooling-off period begins. If any one is missing, the agreement may not bind the buyer.
Source: Condominium Act, 1998, S.O. 1998, c. 19, ss. 72–73 — ontario.ca/laws/statute/98c19 • Nihang Law Professional Corporation • Law Society of Ontario
The DiCenzo Ruling Explained: What Ontario Courts Now Confirm
In DiCenzo (Linden Park) Holdings Inc. v. Sadeghyar (2026 ONSC 1566), the Ontario Superior Court confirmed that a builder who fails to deliver the Residential Condominium Buyers’ Guide cannot enforce the purchase agreement or claim the buyer’s deposit.
The facts are straightforward. In 2022, Ferdows Sadeghyar signed an Agreement of Purchase and Sale for a pre-construction condominium unit in Hamilton, Ontario, at a purchase price exceeding $1 million. He paid a deposit of approximately $121,098. The transaction eventually failed to close, and the builder — DiCenzo (Linden Park) Holdings Inc. — relisted the unit and sold it at a loss. The builder then sued Mr. Sadeghyar for the deposit and for damages representing the difference between the original purchase price and the resale price.
Mr. Sadeghyar defended the claim by arguing that the builder had never provided him with the Residential Condominium Buyers’ Guide as required by s. 72(1)(b) of the Condominium Act. The court agreed. Because the Buyers’ Guide was not delivered, the 10-day cooling-off period was never triggered, the agreement was never binding on Mr. Sadeghyar, and it could not be enforced against him. The court ordered the return of his full deposit with interest and dismissed the builder’s application entirely.
For GTA buyers currently facing a similar situation, the DiCenzo decision is significant. It confirms that a signed agreement is not automatically an enforceable agreement — and that one missing document can be the difference between being legally bound and legally free. For more on other exit routes available under Ontario real estate law, see our guide to other exit clauses in Ontario real estate contracts.
Nihang Law Professional Corporation
The DiCenzo Case at a Glance
How one missing document voided a $1M+ pre-construction condo agreement — DiCenzo (Linden Park) Holdings Inc. v. Sadeghyar, 2026 ONSC 1566
2026
Source: DiCenzo (Linden Park) Holdings Inc. v. Sadeghyar, 2026 ONSC 1566 (CanLII — canlii.org) • Nihang Law Professional Corporation • Law Society of Ontario
Rescission vs. Termination vs. Cancellation: What Each Term Actually Means in Ontario
These three words get used interchangeably by buyers, agents, and even some online resources — but in a legal dispute, they mean very different things. Using the wrong term in a letter to your builder can weaken your position. Here is what each one actually means and when each applies.
Rescission (legally cancelling the agreement from its beginning, as if it never existed) is the right you have under s. 73 of the Condominium Act when the statutory disclosure documents were not properly delivered. A rescission does not require you to prove fault or breach — it operates because the conditions required to make the agreement binding were never satisfied. This is the most powerful remedy for buyers in a disclosure-deficiency situation, and it is the term that should appear in any written notice you send.
Termination is an end to the agreement based on a breach of its terms or a specific contractual condition. It is more fact-specific and typically requires a legal basis within the APS itself. Termination and rescission have different consequences for what happens to your deposit, so the distinction matters practically, not just technically.
Cancellation has no specific legal meaning in Ontario real estate law. Buyers often use it in conversation, but it should never appear in formal correspondence with a builder or their legal counsel. Courts and lawyers will look for the precise legal basis for any attempt to exit an agreement — “cancel” tells them nothing.
Nihang Law Professional Corporation
Rescission vs. Termination vs. Cancellation
Three commonly confused terms — only one preserves the right to a full deposit refund. Know which word to use before contacting your builder.
| Rescission | Termination | Cancellation (Builder) | |
|---|---|---|---|
| Definition | Statutory right to exit the agreement from its beginning, as if it never existed | Contractual or breach-based end to the agreement going forward | Builder exercises an APS cancellation clause (e.g. financing condition) |
| Who Initiates | Buyer | Either party | Builder only |
| Legal Basis | Condominium Act, 1998, s. 73 | APS terms / common law | Tarion Addendum / APS conditions |
| Deposit Outcome | Full refund + interest | Depends on APS terms | Full refund required (Tarion protection, up to $20,000) |
| Cause Required? | No — if cooling-off was never triggered | Yes (breach or condition) | Yes (contractual condition) |
| Use in Correspondence? | ✔ YES — always say “rescind” | Situational — use only with legal advice | N/A — builder-initiated only |
Important: “Cancellation” has no specific legal meaning in Ontario real estate law. Never use this word in written correspondence with your builder or their legal counsel — it tells a court nothing about your legal basis for exiting the agreement.
Sources: Condominium Act, 1998, s. 73; Ontario New Home Warranties Plan Act, R.S.O. 1990, c. O.31; Tarion Warranty Corporation guidelines • Nihang Law Professional Corporation • Law Society of Ontario
Step-by-Step: How to Pursue a Rescission Claim in Ontario
If you believe your builder failed to deliver the required documents, there is a clear path forward. Qasim Ali, Principal Lawyer at Nihang Law, notes that buyers who act before the builder commences litigation typically have the strongest position — both for negotiating a quiet settlement and, if necessary, for succeeding in a court application. Here is what that process looks like, step by step.
Step 1 — Gather Your Disclosure Package
Pull together every document from your purchase: the full Agreement of Purchase and Sale with all schedules and addenda, the Tarion warranty addendum, any disclosure statement you received, courier receipts or email attachments from your signing date, and any acknowledgement-of-receipt form. Gather both physical and digital copies before contacting anyone.
Step 2 — Check Whether the Buyers’ Guide Was Delivered
Look specifically for the Residential Condominium Buyers’ Guide bearing Condominium Authority of Ontario branding — not a builder brochure or a project summary with your builder’s logo. You can view the current version at condoauthorityontario.ca to compare against what you received. If you cannot find it, or if the closest document is builder-produced, there may be grounds to argue s. 72(1)(b) was not satisfied.
Step 3 — Document the Non-Delivery
Evidence of what was — and was not — delivered is the backbone of any rescission claim. Preserve every email (including DocuSign or portal notifications), all courier and registered mail tracking records, and any notes you made at signing. A gap in the delivery record, such as a DocuSign confirmation for the APS but nothing referencing the Buyers’ Guide, may itself be significant evidence. Do not delete or overwrite anything.
Step 4 — Send a Written Rescission Notice
If the evidence supports a rescission claim, the next step is a formal written notice delivered to the builder or their solicitor. Do not phone the builder first. A phone call gives them time to prepare a response, potentially supply missing documents retroactively, or argue that your conduct waived your rights. Your real estate litigation lawyer should draft and serve this notice — the language, delivery method, and legal basis all matter. The notice should assert rescission under s. 73 of the Condominium Act and demand return of the deposit with interest.
Step 5 — File a Court Application if the Builder Refuses
If the builder disputes the claim or refuses to return the deposit, the next step is an application to the Ontario Superior Court under the Condominium Act — the same mechanism used in DiCenzo. These applications typically proceed by affidavit evidence and written submissions rather than a full trial. Timelines from filing to hearing can range from a few months to over a year depending on the court’s schedule and the complexity of the dispute.
Nihang Law Professional Corporation
Typical Timeline: From Discovery to Deposit Recovery
A rescission claim is measured in weeks to months, not days. This chart shows a typical range — actual timelines vary by case complexity and court scheduling.
Timeline is a typical range based on patterns across Ontario Superior Court pre-construction application decisions 2022–2026 (CanLII). Actual timelines vary. • Nihang Law Professional Corporation • Law Society of Ontario
Seven Mistakes That Can Cost You Your Deposit Refund
- ✖ Assuming a signed agreement is always binding. A signature alone does not create an enforceable agreement under Ontario condominium law if the statutory disclosure package was never properly delivered. Check the delivery record for the Buyers’ Guide before assuming you have no options.
- ✖ Calling the builder to “cancel” by phone. A verbal rescission has no legal effect. Ontario courts require written notice delivered to the builder or their solicitor. Phoning first may also give the builder time to argue you waived your rights or accepted the agreement as binding.
- ✖ Waiting until the builder sues to seek legal advice. Once the builder has commenced an application for deposit forfeiture, the legal landscape shifts considerably. The time to assert a disclosure defect is before litigation begins — ideally as soon as you suspect non-delivery.
- ✖ Accepting the builder’s marketing package as the Buyers’ Guide. Builders sometimes include a project-specific brochure or a document labelled “Condominium Information.” The required Guide is a specific CAO-published document — not a builder’s own materials. If it does not come from the Condominium Authority of Ontario, it may not satisfy s. 72(1)(b).
- ✖ Destroying or deleting closing correspondence. The entire case for rescission rests on what the builder sent you and when. Preserve every email, courier record, signing package receipt, and portal login. Courts in DiCenzo-type disputes rely heavily on delivery evidence.
- ✖ Signing a mutual release to “put it behind you.” If a builder offers a release in exchange for a deposit refund, it may look like a resolution — but it can extinguish future claims, including carrying cost claims or consequential losses. Have a real estate litigation lawyer review any release before signing.
- ✖ Assuming Tarion will handle it without legal help. Tarion deposit protection covers up to $20,000 per unit under the Ontario New Home Warranties Plan Act and is triggered differently from a statutory rescission. For deposits exceeding $20,000 — which describes nearly every Toronto pre-construction unit — a court application under the Condominium Act is the appropriate mechanism to pursue recovery.
Frequently Asked Questions: Voiding a Pre-Construction Condo Agreement in Ontario
Can I still void my pre-construction condo agreement if it was signed several years ago?
Potentially, yes. If the Residential Condominium Buyers’ Guide was never delivered, the 10-day cooling-off period under s. 73 of the Condominium Act may never have been triggered — and the statute does not prescribe a separate time limit on rescission in that scenario. The DiCenzo case involved a 2022 agreement; only a lawyer who has reviewed your actual disclosure package can assess whether that defence applies to your situation.
What exactly is the Residential Condominium Buyers’ Guide and how do I know if I received it?
The Buyers’ Guide is a standardized multi-page document published by the Condominium Authority of Ontario, available free at condoauthorityontario.ca — every copy looks the same regardless of which builder you bought from. Check your signing package for a document with CAO branding; if the only “guide” you have carries your builder’s name or logo, you likely did not receive the document required by law.
What happens to my deposit if my rescission claim succeeds?
A successful rescission may entitle you to a full refund of your deposit, plus interest calculated under Ontario Regulation 48/01 made under the Condominium Act. In DiCenzo, the court ordered exactly this and dismissed the builder’s attempt to offset the deposit against its resale losses — where the agreement is void, the builder has no contractual basis to retain or reduce the amount.
My builder says they emailed me the Buyers’ Guide — does that count as delivery?
Electronic delivery can satisfy the statutory requirement, but the burden is on the builder to prove that delivery actually occurred — not merely that they sent it. Courts look at whether there is a timestamped confirmation of receipt, a signed acknowledgement, or a read receipt. A bare email in the builder’s outbox without any confirmation the buyer received it may be open to challenge. This is a highly fact-specific question; a lawyer should review the full correspondence record with you. For a broader look at the common legal mistakes buyers make in purchase transactions, see our related guide.
Can the builder sue me for damages even if I successfully rescind for missing disclosure documents?
In DiCenzo, the court dismissed the builder’s damages claim entirely because there was no enforceable contract from which the builder could derive a right to damages for the resale loss. That outcome depends on the court first finding that the disclosure obligation was not satisfied — outcomes in other cases may differ based on the specific delivery evidence.
Does this apply to freehold pre-construction homes, or only condominiums?
The disclosure framework described in this article — including the Buyers’ Guide requirement under ss. 72–74 of the Condominium Act, 1998 — applies specifically to condominium units. Freehold new home purchases are governed by different legislation, primarily the Ontario New Home Warranties Plan Act and the Tarion warranty program, which provide different (and in some respects more limited) buyer protections. If your pre-construction agreement is for a freehold property, a separate legal analysis applies.
Do I need to go to court or can this be resolved without litigation?
Many cases may resolve without a court application — where the evidence of non-delivery is clear, builders often prefer to return a deposit quietly rather than risk a court proceeding they may lose. A demand letter from a lawyer citing the DiCenzo decision can prompt a settlement; if the builder disputes the claim, an Ontario Superior Court application may be necessary, as it was in DiCenzo.
How quickly should I act if I think my builder did not give me the required documents?
As quickly as possible. Once a builder becomes aware that you intend to assert a non-delivery claim, they may attempt to supply the missing documents retroactively or take steps to strengthen their own legal position. Acting before the builder commences litigation gives you the maximum leverage — both in negotiating a resolution and in any court proceedings that may follow. A consultation with a real estate litigation lawyer at the earliest opportunity is strongly advisable.
Protecting Your Deposit: Next Steps for Ontario Buyers
The DiCenzo ruling has opened a door that many Ontario pre-construction buyers did not know existed. If your builder failed to deliver the Residential Condominium Buyers’ Guide, your agreement may not be legally binding — regardless of how long ago you signed, whether closing was already attempted, or whether the builder has resold the unit. The law created this protection specifically for situations like yours.
Acting quickly matters. Once a builder becomes aware of a potential rescission claim, they may move to strengthen their own legal position. Nihang Law Professional Corporation works with pre-construction buyers across Toronto, Scarborough, Mississauga, Markham, and the broader GTA who are facing exactly this situation — whether they need a disclosure package review, a rescission demand letter, or representation in a court application.
You may have rights you have not yet explored. A brief conversation can clarify whether your agreement qualifies and what realistic next steps look like.
Have you checked your disclosure package?
A brief consultation can clarify whether your agreement qualifies for rescission under the Condominium Act — and what the realistic next steps look like for your situation.
Contact Nihang Law →
About the author
Qasim Ali
Principal Lawyer · Nihang Law Professional Corporation · Toronto & Scarborough, Ontario · Law Society of Ontario
Qasim Ali is the Principal Lawyer at Nihang Law Professional Corporation, serving clients across Toronto, Scarborough, and the broader Greater Toronto Area. He provides full-service legal representation across immigration, real estate, family law, criminal law, civil litigation, employment law, wills and estates, and business law.
Nihang Law is particularly recognized for its depth in immigration and real estate law — a combination that serves newcomers and growing families navigating both legal systems simultaneously.
Learn more about Qasim Ali →Sources & References
- DiCenzo (Linden Park) Holdings Inc. v. Sadeghyar, 2026 ONSC 1566 — Ontario Superior Court of Justice — CanLII (canlii.org)
- Condominium Act, 1998, S.O. 1998, c. 19 — ontario.ca/laws/statute/98c19
- Condominium Act, 1998 — Ontario Regulation 48/01 (Interest on Deposits) — ontario.ca/laws/regulation/010048
- Ontario New Home Warranties Plan Act, R.S.O. 1990, c. O.31 — ontario.ca/laws/statute/90o31
- Residential Condominium Buyers’ Guide — Condominium Authority of Ontario — condoauthorityontario.ca
- Ontario Builder Directory — Home Construction Regulatory Authority (HCRA) — obd.hcraontario.ca
- Tarion Warranty Corporation — Deposit Protection — tarion.com
Thank you for reading this post, don't forget to subscribe!