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Ontario law 10 days cooling off period

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  • Apr 30th, 2018 12:56 pm
[OP]
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Apr 22, 2014
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, ON

Ontario law 10 days cooling off period

Is this law absolute and no conidtions can be applied on a contract to override the law?
I am referring to specifically basement renovation contract.
If I sign and provide a deposit, I can walk away within 10 days and get 100% deposit back with no fees whatsoever?
26 replies
Banned
Mar 13, 2018
1385 posts
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anotherbargainhunter wrote: Is this law absolute and no conidtions can be applied on a contract to override the law?
I am referring to specifically basement renovation contract.
If I sign and provide a deposit, I can walk away within 10 days and get 100% deposit back with no fees whatsoever?
There is no 10 day cooling off period for a renovation contract.

There's only 10day cooling off for door to door sales contracts and condo purchases
Deal Addict
Jan 15, 2017
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Ottawa
Gboard2 wrote: There is no 10 day cooling off period for a renovation contract.

There's only 10day cooling off for door to door sales contracts and condo purchases
This is incorrect. From Ontario.ca site (https://www.ontario.ca/page/your-rights ... or-repairs)

If you sign a home renovation or repair contract worth $50 or more in your home, you have the right to a 10 calendar-day cooling-off period. You may cancel this contract for any reason and without having to pay any cancellation fees within these 10 days.

However, if you hire a contractor and the work was started during the cooling-off period, you can cancel the contract but you will be responsible for reasonable compensation for work and materials that the contractor has provided.
Banned
Mar 13, 2018
1385 posts
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skeet50 wrote: This is incorrect. From Ontario.ca site (https://www.ontario.ca/page/your-rights ... or-repairs)

If you sign a home renovation or repair contract worth $50 or more in your home, you have the right to a 10 calendar-day cooling-off period. You may cancel this contract for any reason and without having to pay any cancellation fees within these 10 days.

However, if you hire a contractor and the work was started during the cooling-off period, you can cancel the contract but you will be responsible for reasonable compensation for work and materials that the contractor has provided.
From your link
It only applies to contracts singed in your home (door to door sales?)

Signing a contract in your home

If you sign a home renovation or repair contract worth $50 or more in your home, you have the right to a 10 calendar-day cooling-off period. You may cancel this contract for any reason and without having to pay any cancellation fees within these 10 days.
[OP]
Deal Addict
Apr 22, 2014
3509 posts
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, ON
Gboard2 wrote: From your link
Aren't most people sign contract with renovation contractors in their home?? I know I do.
Sr. Member
Jan 7, 2013
800 posts
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Oshawa, Ontario
My window quotes even had the 10 day cooling off period specified on the back side. I would say basement reno would apply
Sr. Member
Jul 2, 2013
748 posts
201 upvotes
Aurora
Yep you have 10 "calendar days" to cancel with no penalty. You are still responsible to pay for the estimate if there was a charge for it and any cost of material/labor if any work was done during the cooling off period.
Be professional when you cancel a contract. Send it via email and be sure to ask for confirmation that the email was read and the work will not be scheduled.
Be sure to send your cancellation via registered mail AND call the contractor to inform them that you have done so.

A quick story, my estimates are valid for 30 days. I had a client sign an estimate and after 8 days they sent an email to cancel. Luckily I caught the email that was in my spam folder.
I was fine with the cancellation and did so with no issues. Turns out they cancelled because they found someone cheaper. He calls me after about 2 weeks and says he fired his current contractor and that I, "by law" have to "honor" my 30 day estimate price protection.
I chuckled and hung up the phone.
[OP]
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Apr 22, 2014
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lehmanr wrote: Yep you have 10 "calendar days" to cancel with no penalty. You are still responsible to pay for the estimate if there was a charge for it and any cost of material/labor if any work was done during the cooling off period.
Be professional when you cancel a contract. Send it via email and be sure to ask for confirmation that the email was read and the work will not be scheduled.
Be sure to send your cancellation via registered mail AND call the contractor to inform them that you have done so.

A quick story, my estimates are valid for 30 days. I had a client sign an estimate and after 8 days they sent an email to cancel. Luckily I caught the email that was in my spam folder.
I was fine with the cancellation and did so with no issues. Turns out they cancelled because they found someone cheaper. He calls me after about 2 weeks and says he fired his current contractor and that I, "by law" have to "honor" my 30 day estimate price protection.
I chuckled and hung up the phone.
So I guess in your case your client needed to sign a contract and provided a small deposit for the 30 quote?
We just met ours on Thursday and we didn’t sign anything. They are supposed to come back today and get us to sign a contract and to provide a small deposit 5%. He told me that I may be responsible to pay for the architect fee that they sub contract during the cooling off period. I told him to not start anything at all and wait until the 10 days cooling off period is over. Isn’t this fair for both of us?
Deal Addict
Mar 21, 2006
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Burlington, Ontario
anotherbargainhunter wrote: We just met ours on Thursday and we didn’t sign anything. They are supposed to come back today and get us to sign a contract and to provide a small deposit 5%. He told me that I may be responsible to pay for the architect fee that they sub contract during the cooling off period. I told him to not start anything at all and wait until the 10 days cooling off period is over. Isn’t this fair for both of us?
Sure it sounds fair, but just means your job will start later.

In my business everyone is in a hurry because they never realize they need us until the day before drywall goes up.. So turn around has to be fast.
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[OP]
Deal Addict
Apr 22, 2014
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, ON
BuildingHomes wrote: Sure it sounds fair, but just means your job will start later.

In my business everyone is in a hurry because they never realize they need us until the day before drywall goes up.. So turn around has to be fast.
Well we are not in a hurry. As long as it gets done right.
Deal Addict
Dec 17, 2007
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Alliston, ON
anotherbargainhunter wrote: So I guess in your case your client needed to sign a contract and provided a small deposit for the 30 quote?
We just met ours on Thursday and we didn’t sign anything. They are supposed to come back today and get us to sign a contract and to provide a small deposit 5%. He told me that I may be responsible to pay for the architect fee that they sub contract during the cooling off period. I told him to not start anything at all and wait until the 10 days cooling off period is over. Isn’t this fair for both of us?
Unless your still shopping around for more quotes, or are thinking of backing out of the contract. Why not just start right away instead of waiting for the 10day period to expire just for the sake of it..
[OP]
Deal Addict
Apr 22, 2014
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schade wrote: Unless your still shopping around for more quotes, or are thinking of backing out of the contract. Why not just start right away instead of waiting for the 10day period to expire just for the sake of it..
They were the first and only one that we saw. We are looking to get more quotes. We told them that. However, they want us to sign to reserve the special offer. I will make sure they put the cooling period on the contract before we sign.
Deal Addict
Dec 17, 2007
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Alliston, ON
anotherbargainhunter wrote: They were the first and only one that we saw. We are looking to get more quotes. We told them that. However, they want us to sign to reserve the special offer. I will make sure they put the cooling period on the contract before we sign.
If the contractor is offering you a time sensitive special offer that doesn't apply unless you sign the contract right away, I'd avoid them forsure! They sound like they might be the type that would be noting but headaches as the project went on.

They should be able to honor their quote for 30 days.
Deal Guru
Jan 25, 2007
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Paris
schade wrote: If the contractor is offering you a time sensitive special offer that doesn't apply unless you sign the contract right away, I'd avoid them forsure! They sound like they might be the type that would be noting but headaches as the project went on.

They should be able to honor their quote for 30 days.
This reminds me of the "Our sale is over tomorrow!" thread. Every day its over tomorrow. I would NEVER sign a contract under these circumstances unless its for large good financing as those dates are hard dates set out by banks etc. When I worked in large ag financing, April 30th meant April 30th at midnight local time. May 1st was "sorry not sorry"

The biggest thing to watch for is HOW they require notification of cancellation. My friends from London who like to spam the world with advertising for their overpriced windows require you to run a maze of crap Indiana Jones style to cancel a contract.
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Oct 13, 2014
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Just Moved To Somewh…
I am going to go out on a limb and say that you are all reading the wrong section of the CPA of Ontario. You are reading the provisions for a "Direct Agreement" which implies "door to door sales". The Ontario site referred to in Post #3 is only offering very generic information and is not the actual legislation.

When you (homeowner) solicits a contractor for a renovation contract you are in fact inviting them to your home for the purposes of providing an estimate, etc. they are not going door to door. This would then fall under the provisions of a "Future Performance" contract, depending on the total financial obligation. The provisions are too long so I will post a link to review, however here is the key provision you should look at:

Delivery or commencement date not specified
Sec 26 (2) If the delivery date or commencement date is not specified in the future performance agreement, a consumer may cancel the agreement at any time before delivery or commencement if the supplier does not deliver or commence performance within 30 days after the date the agreement is entered into. 2002, c. 30, Sched. A, s. 26 (2).


Here is the applicable section link:
https://www.ontario.ca/laws/statute/02c30#BK26
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[OP]
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Apr 22, 2014
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rcmpvet wrote: I am going to go out on a limb and say that you are all reading the wrong section of the CPA of Ontario. You are reading the provisions for a "Direct Agreement" which implies "door to door sales". The Ontario site referred to in Post #3 is only offering very generic information and is not the actual legislation.

When you (homeowner) solicits a contractor for a renovation contract you are in fact inviting them to your home for the purposes of providing an estimate, etc. they are not going door to door. This would then fall under the provisions of a "Future Performance" contract, depending on the total financial obligation. The provisions are too long so I will post a link to review, however here is the key provision you should look at:

Delivery or commencement date not specified
Sec 26 (2) If the delivery date or commencement date is not specified in the future performance agreement, a consumer may cancel the agreement at any time before delivery or commencement if the supplier does not deliver or commence performance within 30 days after the date the agreement is entered into. 2002, c. 30, Sched. A, s. 26 (2).


Here is the applicable section link:
https://www.ontario.ca/laws/statute/02c30#BK26
What if I ask them to put cooling off period clause which contains the date when the cooling off expires, delivery method of the cancellation, full refund deposit, and they agree to not start anything until the cooling off period is over?
So far I only get their sales manager to acknowledge that I have 10 cooling off period via text sms.
I have not signed any contract yet with them. Will I be protected with all of the above?
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Nov 18, 2005
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If you aren't confident you're going to proceed with that contractor, don't sign a contract and avoid the hassle of having to get out of it.

As others have said, it seems sketchy that they have a "special price" that expires. Ask them for a written quote that is good for 15 days so you can ensure it covers all the work and you understand the terms.
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Oct 13, 2014
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Just Moved To Somewh…
@anotherbargainhunter Just do not sign anything until you are sure this is the contractor you wish to hire, after interviewing other contractors. The CPA, although designed to protect the consumer can also be used to protect the supplier. It is always best to comply with the provisions contained therein. Another link which I neglected to include previously outlines the actual requirements in the Regulations (Section 24):

https://www.ontario.ca/laws/regulation/050017#BK33
#1 - “Don’t irritate old people. The older they get, the less “Life in prison” is a deterrent."
#2 - Are you a Sexual Intellect? /S - What you post in this thread may determine that.
Deal Guru
Jan 25, 2007
10997 posts
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Paris
rcmpvet wrote: I am going to go out on a limb and say that you are all reading the wrong section of the CPA of Ontario. You are reading the provisions for a "Direct Agreement" which implies "door to door sales". The Ontario site referred to in Post #3 is only offering very generic information and is not the actual legislation.

When you (homeowner) solicits a contractor for a renovation contract you are in fact inviting them to your home for the purposes of providing an estimate, etc. they are not going door to door. This would then fall under the provisions of a "Future Performance" contract, depending on the total financial obligation. The provisions are too long so I will post a link to review, however here is the key provision you should look at:

Delivery or commencement date not specified
Sec 26 (2) If the delivery date or commencement date is not specified in the future performance agreement, a consumer may cancel the agreement at any time before delivery or commencement if the supplier does not deliver or commence performance within 30 days after the date the agreement is entered into. 2002, c. 30, Sched. A, s. 26 (2).


Here is the applicable section link:
https://www.ontario.ca/laws/statute/02c30#BK26
My understanding is that both pieces apply. We have a 10 days cooling off period as well as the future performance 30 days past our install end date in all our contracts. Those wouldn’t be there unless required by our lawyer.

Edit: while it implies door to door, in practice its for all contracts signed in the home. Some places (like the one OP is talking about) are extremely pushy and do the “what do I need to do to get you to sign this today?”
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Oct 13, 2014
2420 posts
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Just Moved To Somewh…
@Jerico This is what confuses the consumer and also applies reflects on the Ontario Consumer website that was previously posted, where I stated the information is not always legally correct. I stand by my interpretation of the Act itself. One has to fully read all the applicable sections as well as the regulations I posted in Post #18; Section 35.1(4)(b) of those regulations specifically exempts the supplier of the requirements of Section 43.1(1) of the Act itself if:

(b) the supplier has initiated contact with the consumer for any purpose by any means of communication, other than communication in person at the consumer’s dwelling, and the consumer has invited the supplier to attend at the consumer’s dwelling;

EDIT - To clarify what I earlier stated: the Act is there to not just protect the consumer but it also protects the supplier, especially in those instances where the consumer should have done their due diligence before signing any contract. No contractor would want to enter into a contract, initiated by the consumer whereby the consumer can cancel within 10 days and the contractor has gone to the trouble of obtaining the supplies, scheduling the work etc. only to have the contract cancelled on a whim, when it was the consumer that did the initial soliciting. Note also that the above provision does not apply to a supplier of "prescribed goods", ie - water heater, furnace, etc.
#1 - “Don’t irritate old people. The older they get, the less “Life in prison” is a deterrent."
#2 - Are you a Sexual Intellect? /S - What you post in this thread may determine that.

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