What is it?
A disclosure statement is the package of documents a builder (the "declarant" under the Condominium Act) must give you when it sells a condo unit that is not yet built or is newly built. Its purpose is to tell you in advance what the future condo corporation will look like, what it will cost and what its rules are. It is usually thick, and you receive it with or separately from the Agreement of Purchase and Sale.
Section 72 of the Condominium Act requires the builder to give every buyer the "current disclosure statement" and the CAO condo buyers’ guide, and states that the agreement does not bind the buyer until both have been delivered. The 10-day cooling-off period starts once you have the disclosure statement, the guide and the fully signed agreement.
When you buy a resale condo you receive a status certificate instead. The two documents play a similar role, but the law sections and contents are different.
What is in it?
Section 72 (3) of the Condominium Act and section 17 of the regulation (O. Reg. 48/01) set the contents. The items that matter most to a buyer are these.
- The date it was made, the builder’s name and address, and the property address
- The type of condominium (freehold or leasehold, and which kind of freehold, such as standard, common elements or phased)
- The types and number of buildings, units and amenities, and any conditions on providing the amenities. If amenities are unfinished, the planned start and completion dates and the amenities available during interim occupancy
- Whether the property will be enrolled in the Tarion warranty plan (Ontario New Home Warranties Plan Act)
- Whether the building is a conversion, whether there are commercial units, the share of units the builder intends to sell in blocks to investors, and the share it intends to lease (to the nearest 25%)
- The draft declaration, by-laws and rules — this is where pet, parking, short-term rental and use restrictions live
- A summary of the agreements the corporation will enter into, such as the management contract, and any fees the corporation must pay the builder
- The first-year budget statement (s. 72 (6)): the common expenses, the projected monthly fee for each type of unit, the share going to the reserve fund, pending lawsuits, and services the builder pays for now that could later become common expenses
- Extras required by section 17 of the regulation: a copy of sections 73 and 74 of the Act, a statement that the builder keeps any trust interest above what it must pay you, whether there is visitor parking and what it costs, and the current use and development plans for adjacent land the builder owns
The 10 days after you receive it: what to do
- Write down the date. Count 10 days from the latest of the disclosure statement, the CAO guide and the agreement signed by both sides.
- Send the whole disclosure statement and agreement to a real estate lawyer experienced in pre-construction right away. Ten days is short.
- Based on the lawyer’s review, ask for amendments (a cap on closing adjustments, a different deposit schedule, and so on). If the builder refuses, decide whether to cancel.
- Talk to a mortgage professional about whether you will be able to fund the balance at a closing years from now.
- If you decide to cancel, send a written notice of rescission that the builder (or its lawyer) receives within the 10 days. Your money comes back with interest.
What does a lawyer look for in it?
- Whether the projected monthly fee is realistic, what services it includes and how much goes to the reserve fund — first-year budgets are said to be set low at times, so go through the items with your lawyer
- Whether your unit’s share of common expenses differs by 10% or more from other units of the same type, size and design (the table of contents must show whether and where this is covered)
- Whether parking and a locker are part of the unit, an exclusive-use common element, or sold separately
- Whether the declaration and rules restrict pets, short-term rentals (Airbnb), smoking or renovations
- The share of units the builder plans to lease and to sell to investors in blocks — a hint of whether the building will be mostly tenants
- Agreements the corporation must sign with the builder or related companies (management, parking garage lease, telecom) and what they cost
- The amenity completion schedule, any commercial units, and development plans for neighbouring land (will your view be blocked?)
- Pending lawsuits and money the corporation will owe the builder
What if it changes later? (Material change)
If the information in the disclosure statement changes in a "material" way, the builder must deliver a revised disclosure statement or a notice (Condominium Act, s. 74). The law defines a material change as one that a reasonable purchaser, looked at objectively, would have found important enough that they would not have signed, or would have cancelled. Changes to the share of units the builder will lease, to the amenity schedule, or to the budget more than a year after registration are excluded.
After a material change, you may rescind again in writing within 10 days of the latest of: receiving the revised statement or notice, becoming aware of the change, or a court ruling that the change is material. Your money comes back with interest. The revised statement must reach you at least 10 days before the builder delivers a deed in registerable form.
If there is a dispute about whether a change is material, either side can ask the Ontario Superior Court of Justice to decide. The buyer may apply within 10 days after receiving the revised statement or notice. The builder may apply within 10 days after receiving the buyer’s notice of rescission, if the buyer has not already applied. This is not something to handle without a lawyer.
Example
On Wednesday, February 3, 2027 you sign the agreement at the sales office, and on Friday, February 5 you receive by email the copy signed by the builder, the disclosure statement and the CAO guide. You have all three as of February 5, so the 10-day cooling-off period runs to February 15.
Your lawyer finds that the projected fee in the first-year budget is lower per square foot than comparable buildings, that the builder plans to lease 50% of the units, and that the parking space is an exclusive-use common element rather than part of your unit. The agreement also has no cap on closing adjustments. The builder agrees to a cap but will not change the rest, so you decide to proceed with that knowledge and do not cancel before February 15. The dates in this example are for illustration only.
What the law and official sources say
Quotes are copied word for word. The "In plain words" lines are our explanation, not an official translation.
The declarant shall deliver to every person who purchases a unit or a proposed unit from the declarant or a person acting on behalf of or for the benefit of the declarant a copy of, … (a) the current disclosure statement made by the declarant for the corporation of which the unit or proposed unit forms part; and … (b) the applicable condominium guide under section 71.1.In plain wordsEveryone who buys a unit from the builder (or someone acting for it) must be given a copy of the current disclosure statement and the condo buyers’ guide.
Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026
An agreement of purchase and sale of a unit or a proposed unit entered into by a declarant or a person acting on behalf of or for the benefit of the declarant is not binding on the purchaser until the declarant has delivered to the purchaser a copy of the current disclosure statement and the condominium guide in accordance with subsection (1).In plain wordsUntil the builder delivers the disclosure statement and the guide, the purchase agreement does not bind the buyer.
Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026
(d) a general description of the property or proposed property including the types and number of buildings, units and recreational and other amenities together with all conditions that apply to the provision of amenities; … (j) a statement of the portion of units or proposed units, to the nearest anticipated 25 per cent, that the declarant intends to lease; … (m) a copy of the existing or proposed declaration, by-laws, rules and insurance trust agreement, if any; … (q) a copy of the budget statement described in subsection (6);In plain wordsThe disclosure statement must describe the buildings, units and amenities and their conditions, state the share of units the builder intends to lease (to the nearest 25%), and include the (draft) declaration, by-laws and rules and the first-year budget statement.
Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026
(d) a statement of the projected monthly common expense contribution for each type of unit; … (e) a statement of the portion of the common expenses to be paid into a reserve fund; … (f) a statement of the status of all pending lawsuits material to the property of which the declarant has actual knowledge and that may affect the property after the registration of a deed to the unit from the declarant to the purchaser;In plain wordsThe first-year budget must state the projected monthly fee for each unit type, the share going to the reserve fund, and the status of material lawsuits the builder knows about.
Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026
To rescind an agreement of purchase and sale under this section, a purchaser or the purchaser’s solicitor shall give a written notice of rescission to the declarant or to the declarant’s solicitor who must receive the notice within 10 days of the latest of, … (a) the date that the purchaser receives the disclosure statement; … (b) the date that the purchaser receives a copy of the applicable condominium guide under section 71.1; and … (c) the date that the purchaser receives a copy of the agreement of purchase and sale executed by the declarant and the purchaser.In plain wordsTo cancel, the builder (or its lawyer) must receive a written notice within 10 days of the latest of the disclosure statement, the guide and the fully signed agreement.
Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026
“material change” means a change or a series of changes that a reasonable purchaser, on an objective basis, would have regarded collectively as sufficiently important to the decision to purchase a unit or proposed unit in the corporation that it is likely that the purchaser would not have entered into an agreement of purchase and sale for the unit or the proposed unit or would have exercised the right to rescind such an agreement of purchase and sale under section 73, if the disclosure statement had contained the change or series of changes, but does not include, …In plain wordsA material change is a change (or set of changes) important enough that a reasonable buyer who knew about it would not have signed or would have cancelled within the 10 days. Certain items (leasing share, amenity schedule and others) are excluded.
Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026
If a change or a series of changes set out in a revised disclosure statement or a notice delivered to a purchaser constitutes a material change or if a material change occurs that the declarant does not disclose in a revised disclosure statement or notice as required by subsection (1), the purchaser may, before accepting a deed to the unit being purchased that is in registerable form, rescind the agreement of purchase and sale within 10 days of the latest of, …In plain wordsIf a material change occurs (even one the builder failed to disclose), the buyer may cancel within 10 days of the relevant date, as long as they have not yet accepted the deed.
Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026
In addition to the material specified in subsection 72 (3) of the Act, a disclosure statement mentioned in that subsection shall include, … (a) a copy of sections 73 and 74 of the Act; … (b) a statement that, under subsection 82 (8) of the Act, the declarant is entitled to retain the excess of all interest earned on money held in trust over the interest that it is required to pay to the purchaser under section 82 of the Act; … (e) a statement, … (i) indicating whether visitors must pay for parking and what the anticipated costs are, … (ii) indicating whether there is visitor parking on the property,In plain wordsThe disclosure statement must also include the text of the rescission sections (73 and 74), a statement that the builder keeps trust interest above what it owes you, and whether there is visitor parking and what it costs.
Source: ontario.ca/laws/regulation/010048 · checked Oct 30, 2026
Common questions
I signed the agreement but never received a disclosure statement. Is the contract valid?
Under section 72 (2) of the Condominium Act, the agreement does not bind you until you receive the disclosure statement and the CAO guide. The 10-day cooling-off period starts only once you have both documents and the signed agreement. When they arrive, note the date and send everything to a lawyer right away.
Can I trust the projected condo fee in the disclosure statement?
The first-year budget is the builder’s estimate. The law requires it to state the projected monthly fee and the reserve fund share, but actual fees can change once the owners take over the corporation. Compare with similar buildings and confirm with your lawyer which services are included.
How is a disclosure statement different from a status certificate?
A disclosure statement is what the builder gives when selling a new condo (s. 72). A status certificate is issued by an existing condo corporation in a resale deal (s. 76). A new condo has no corporation yet, so the disclosure statement plays that role.
The builder changed the share of units it will lease. Can I cancel?
Section 74 (2) specifically excludes a change in the share of units the builder intends to lease from the definition of a material change, so that alone does not give you a new right to cancel. Check with your lawyer whether other changes were made.
Can I get a Korean translation?
Builders do not usually provide Korean versions. Section 17 (3) of O. Reg. 48/01 requires the disclosure statement’s table of contents to be in English or French, in a set form. If there is a translation, ask your lawyer which version the agreement treats as the official one. Ask a lawyer who can explain it in Korean, or ask me.
Guides that use this term
Sources checked
- Condominium Act, 1998, ss. 72–74 (e-Laws) · checked Oct 30, 2026
- O. Reg. 48/01: General, s. 17 (extra contents of the disclosure statement, table of contents form) · checked Oct 30, 2026
- Condominium Authority of Ontario, Pre-construction condos (six documents to review) · checked Oct 30, 2026
- CAO, Ontario’s Residential Condominium Buyers’ Guide (2025 edition, sections 3.2–3.3) · checked Oct 30, 2026