Ontario Further Strengthens Consumer Protection for Buyers of New and Pre-construction Condos

The Ontario government has introduced regulatory changes to enhance consumer protection for buyers of new and pre-construction condominiums, in response to concerns and media reports about cancelled pre-construction projects. As of July 1, 2022, developers will be required to ensure purchasers sign a Condominium Information Sheet, warning them of the possibility of early termination without completion. The Home Construction Regulatory Authority (HCRA) will have the power to take action against developers who violate relevant acts. Additionally, starting January 1, 2023, the interest payable to purchasers on their deposits/payments will be increased under certain circumstances when a condo project is cancelled or the Agreement of Purchase and Sale is rescinded.