The provincial government has announced changes that will protect new home buyers by doubling the maximum fines for unethical builders and vendors of new homes who unfairly cancel a new home project or terminate a purchase agreement.
Proposed changes under the New Home Construction Licensing Act (NHCLA), would if passed, increase existing maximum financial penalties from $25,000 to $50,000 per infraction, with no limit to additional monetary benefit penalties.
Under these new changes, officials say unscrupulous developers could now be on the hook for hundreds of thousands of dollars in fines for each unfairly cancelled contract.
Minister of Public and Business Service Delivery Kaleed Rasheed made the announcement in Windsor on Thursday.
He was joined by the province's Minister of Municipal Affairs and Housing Steve Clark, Windsor-Tecumseh MPP Andrew Dowie, Essex MPP Anthony Leardi and Windsor mayor Drew Dilkens.
Rasheed says hard-working Ontarians deserve to be treated fairly when making one of the biggest purchases of their lives, a new home.
"We are doubling the maximum fines for unethical builders and vendors of new homes who unfairly cancelled a project or terminate a purchase agreement," says Rasheed. "If passed, these changes would increase existing maximum financial penalties from $25,000 to $50,000 per infraction with no limit to additional monetary benefit penalties. Greedy developers could now be on the hook for hundreds of thousands of dollars when they unfairly cancel a new home project and for the first time ever, money from these penalties will go back to the victims."
Local dignitaries on hand along with provincial ministers for today's announcement (Photo taken by AM800's Rob Hindi)
The proposed changes will also enable the Home Construction Regulatory Authority (HCRA) to use the money received from these penalties to make payments back directly to consumers who have been adversely affected by builders and vendors who break the law.
Officials say this change would make Ontario the first jurisdiction in Canada to provide such compensation to consumers.
Once proclaimed into force, the HCRA would have the authority to impose financial penalties retroactively to contraventions that occurred on or after April 14, 2022 - the date the More Homes for Everyone Act received Royal Assent.
The province is also doubling maximum financial penalties for repeat offenders of the NHCLA, with individuals now facing charges of $100,000 and corporations of $500,000, up from $50,000 and $250,000 respectively. Individuals found guilty may also face a sentence of up to two years in prison.