Members should be aware that the Ministry of Public and Business Service Delivery is seeking input on proposed measures related to new home purchase agreements and price escalations. A consultation has been launched accordingly with a due date of August 13th.
The areas of focus for the consultation include,
- Proposed limits on the amount by which a provision of a new home purchase agreement can permit prices to increase.
- Proposed limits on the amount by which a builder can increase the price of a new home after the builder has cancelled an agreement to sell it.
- Permitting consumers to launch class action lawsuits against builders who attempt to escalate the prices of their new homes.
- Publishing information about the number of purchase agreements for freehold homes (that is, non-condominium homes) a builder has cancelled for a reason unrelated to the fault of the buyer.
- Establishing a cooling-off period for buyers of new freehold homes.
- Proposal to make it mandatory for new home buyers to receive a legal review during a new home purchase.
OHBA is working in collaboration with our HBA Chapters across Ontario on this public consultation. It is critical that we collectively provide a clear message on ways to better protect consumers and crucially, ensure a sustainable new home construction industry in Ontario. As we coordinate a public policy response, we will have materials that can be utilized by Chapters and members soon to respond accordingly.