Crack down on developers who hit pre – construction buyers or cancel altogether, with large price hikes as their new homes are being constructed. New regulations are proposed by the Ontario government in the attempt to control this problem.
The decision was based after CBC news indicated cases of Ontario developers demanding a higher payment from the buyers than the initial agreement or lose their home – to – be, as developers predicting rising building costs. In most cases tens of thousands of dollars exceeding the initial agreement.
Premier Doug Ford agreed that his government would put in more effort to eradicate these types of situations, punishing individuals who resort to the practice of making money off the back of hard – working – people.
Consultations are launched by the province to try and handle price escalations, and offer more opportunities for consumers to see a clear picture of the agreement when purchasing a home. However, the consultation paper is an indication that the government is looking in to options of how a developer can increase prices with limitations, concerns for some that the government may miss the mark.
Partner and founder of JBrennan Law John Brennan indicates he is glad that proposals are in place that would make it transparent for potential buyers if a company in the past have cancelled agreements or related issues, with publicly available data. He went on to say that mandatory legal reviews will assist buyers to understand liabilities and potential risks, along with the prevention of exploitive terms being included into the contract.
He says although these are not finalized regulations, the proposal does not seem helpful for some individuals as it does not consider retroactive cases. He mentioned that the growing problem was not addressed by the government quickly enough. However, the proposal when enforced will be for the most part, “a step in the right direction.”
