Ontario to increase penalties around 'unethical' condo development practices
BNN Bloomberg
Ontario has proposed new regulations that would double the fines for condo developers who cancel pre-construction projects and then increase the price of units.
Ontario plans to increase fines and other penalties for "unethical" condominium development practices.
Government and Consumer Services Minister Ross Romano said the proposed new regulations are set to take effect in 30 days and be retroactive to the date of Thursday's announcement.
Romano said the Progressive Conservative government is looking to make the changes after hearing about situations where people "make a commitment to purchase at one price, and then those prices are being extraordinarily increased."
"Our goal is to create a system whereby we have greater teeth so that developers will think twice before they take advantage of homebuyers," Romano told reporters.
The regulations would double fines for corporations and individuals who cancel pre-construction projects and then increase the price of their units.
They would also remove limits on fines for repeat offenders and introduce the potential for developers who engage in such practices to lose licences for two years, instead of for six months as is the current limit, Romano said.
