Ontario doubles fines for new home cancellations

The Ontario government is ramping up its fight against unethical homebuilders. The new proposal targets builders and vendors who cancel a new home project or terminate a purchase agreement without good reason.

The new ruling would enable the fines levied to be returned directly to the victims, the first of its time in Canada.

If passed, the proposed changes to the New Home Construction Licensing Act, enacted in 2017, would increase the maximum penalties from $25 000 up to $50 000 per infraction. There is no limit to additional penalties over and above this amount. Under the proposed changes, developers could face hundreds of thousands of dollars in fines. Depending on the nature of the offense, developers could also be at risk of losing their builder’s license.

Under the new proposal, the penalties for repeat offenders are also set to double. Repeat infringements will now face a fine of $100 000 and corporations a fine of $500 000. This is up from $50 000 and $250 000 respectively. Individuals may also face up to two years in prison if found guilty.

More Homes for Everyone Act, the government announced that it would increase the financial penalties for both individuals and corporations who breached the code of ethics to $50,000 for an individual and introduced a new fine for corporations at $100,000.

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 behavior by builders and vendors of pre-construction projects. Instead of profiting on bad behavior, they will face hundreds of thousands of dollars in fines that will go back into the pockets of their victims.”

“Ontarians who have saved and sacrificed to purchase a new home deserve to be treated fairly,” said Steve Clark, Minister of Municipal Affairs and Housing. “With today’s announcement, our government is making clear that illegal and predatory behavior on the part of developers will not be tolerated, full stop.”

These proposed changes are another step in the government’s crackdown on unethical building practices. In the The More Homes for Everyone Act responds to recommendations from the Ontario Housing åAffordability Task Force. The act was created partly to make the development process more