Ontario homebuyers stunned by extra $175K charge from developer, call for government action
CBC
Some buyers who years ago purchased builds in a housing development in Stayner, Ont., are fuming and calling for government intervention after they were told they would need to fork over $175,000 above what was agreed upon in contracts with the developer before their homes will finally be built.
CBC News has spoken with multiple people who bought homes in the Ashton Meadows development roughly 125 kilometres north of Toronto, and who say that in recent weeks, Briarwood Development Group has told them they either need to pay more to get their homes built, or sign a mutual release agreement, lose the homes and get their deposits back.
Briarwood maintains the sudden price increase is due to supply chain issues alongside high costs of labour and materials linked to the COVID-19 pandemic. The company said in a statement it has been "navigating these challenges and trying to find constructive ways forward."
Buyers, however, are insistent they're caught up in a case of corporate greed, and say the Ontario government needs to do more to protect people in their position. While Premier Doug Ford previously said the province would step in to help buyers in situations such as these, experts say the government hasn't done enough.
"I feel like they are trying to strong-arm me and I have nowhere to turn to. I have nobody," said buyer Jennifer LeFeuvre, who put down a deposit on a home with her husband in 2019, before the pandemic.
"I can't even function at my job because of this. These people are getting away with murder and there's nothing that I can do."
LeFeuvre originally purchased her home for just over $605,000, with a deposit of more than $62,500. She said the initial closing date was supposed to be Aug. 31, 2021, but Briarwood started sending out delay notices during the pandemic.
At the beginning of May, LeFeuvre received notice from the company informing her her home still wouldn't be finished in 2022. She was offered a mutual release where their contract could be broken and she would get her deposit back. LeFeuvre didn't sign it — she and her husband just wanted their house built.
In July, the pair were called in for a meeting with Briarwood. LeFeuvre said they were presented with two options: either pay an extra $175,000 — nearly three years after they had initially signed their contract — or sign a mutual release form.
"Basically what they were saying to us is they don't want to sell us this house. They want to sell it to somebody else for this new price," she said.
"In that moment, the only thing I could think of is, 'We're not signing anything, we're taking this to a lawyer.'"
Buyer Dennis Williams, who originally purchased his home at just under $787,000, said he ended up in the same boat. He got a notice from Briarwood about a week ago to pay an additional $175,000 for his home in the development, or to sign a mutual release form and get his deposit of more than $77,000 back.
"They're ambushing people," Williams said.
"This is 100 per cent an equity grab."
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