If passed, proposed legislative changes would double the maximum penalties
The Ontario government has announced that it will be doubling the maximum fines for new home builders and sellers who cancel a project or purchase agreement without due cause.
If passed, the proposed changes to the New Home Construction Licensing Act would increase the existing maximum penalties from $25,000 to $50,000 per violation, “with no limit to additional monetary benefit penalties,” the Ontario government said.
Individual developers with repeat violations of the New Home Construction Licensing Act could face fines of $100,000 (up from $50,000), and corporations could be fined $500,000 (up from $250,000).
“Under these new changes, unscrupulous developers could now be on the hook for hundreds of thousands of dollars in fines for each unfairly cancelled contract,” the government said.
Developers who engage in these practices also face the risk of permanently losing their builder’s licence, the government added.
“Hard-working Ontarians deserve to be treated fairly when making one of the biggest purchases of their lives: a new home,” said Kaleed Rasheed, Minister of Public and Business Service Delivery.
“With these stiffer penalties, we are cracking down on bad actors and taking a zero-tolerance approach to unethical and illegal behaviour by builders and vendors of pre-construction projects. Instead of profiting on bad behaviour, they will face hundreds of thousands of dollars in fines that will go back into the pockets of their victims.”