CCI Toronto News
Ontario Further Strengthens Consumer Protection for Buyers of New and Pre-construction Condos
In view of heightened public concern and media reports about cancelled pre-construction condominium projects, the Ontario government has announced regulatory changes aimed at helping to protect buyers of new and pre-construction condominiums.
Notably, as of July 1st 2022, developers will be required to ensure that the purchaser signs a Condominium Information Sheet developed by the Home Construction Regulatory Authority (HCRA), which warns the purchaser that the condominium project might be terminated early without being completed. The HCRA will also be given the power to deny, revoke, or suspend a developer’s license if the developer violates the Condominium Act, 1998, the Building Code Act, or the Ontario New Home Warranties Plan Act.
As of January 1st, 2023, the General Regulation No. 48/01 to the Condominium Act, 1998 will be amended to increase the amount of interest payable to new/pre-construction purchasers on their deposits/payments in certain circumstances, such as when the developer cancels a condo project or rescinds the Agreement of Purchase and Sale. Currently, Section 19(3) of the General Regulation sets the payable interest per annum at the prime rate minus 2%; the Ontario government will be amending this on January 1st, 2023, to be the prime rate. On April 22, 2022, the CCI-Toronto Legislative Committee submitted feedback to the Ontario government and recommended that the interest be higher than the prime rate, so that it could act as a greater deterrent against condominium cancellations. The Ontario government has chosen to proceed with their previously-proposed increase to the prime rate.
You can read the full announcement from the Ontario government, here.
The CCI Toronto Legislative Committee is committed to providing regular ongoing updates regarding all legislation concerning condominiums, in order to keep our members abreast of changes of which they need to be aware.