Pre-construction consumer protection

  • al: Sandra A
  • destinatario: Home/Condo/Townhome Buyers

A change has to happen. Pre-construction laws in Ontario have to change to protect hard working individuals who purchase pre-construction condos/townhomes. I am asking for everyone who reads this to please share. I am searching for anyone and everyone who has been intimated by builders to give up their pre-construction.. . It is we hard working people who buy pre-construction properties that assist the builder in getting funding for his project, so why aren't there better laws protecting us buyers? Why is the builder allowed to use intimidation tactics and force the current buyers out of their purchase? This has to stop. Why are builders allowed to keep even one cent of interest earned on the deposits? That is free money in their pockets.

I want to hear from anyone who has had his or her pre-construction project cancelled, or have been bullied out it. Please email me at stopbuilders@outlook.com.  


Once the buyers take occupancy, they have to pay "rent" to the builder until the building is registered. The rent generally includes, maintenance AND property taxes, however the builder doesn't pay the property tax.

Once the building is registered, the owner of the unit is required to pay the property tax, and then apply to receive a refund from the builder. The amount allocated for "property tax" sits in the builder's bank account accumulating interest. May not seem much if it is a few hundred dollars, but if the complex being built is 200 units, that is a lot of money. The builder does refund the property tax, however the interest accumulated is not fully distributed to the purchasers; a small percentage is returned to the buyer the remaining is kept by the builder.

My husband and I bought a pre-construction townhome at approx $550/sq ft. We received two mortgage approval letters; one had the condition that we use the equity of our home as part of the down payment. It was rejected. The area where we bought has gone up in value and pre-constructions are now selling for $750/$800 a square foot.
The builder is looking to find us in default... Why? he will keep our deposit ($57,000) plus sell the unit for more.. Off our unit alone, he will gain a profit of $242,000. There are 116 units in the development and if he does this to everyone, he will profit more than $28 MILLION dollars.

No more.
We have to fight for change


I am proposing new laws:

1. Enhance consumer protection: Builders cannot interfere or influence the financincing agreement between purchasers and lenders.

2. Enhance consumer protection: Interest earned on money received from buyers (whether down payments or "rent"), if refunded, must be fully distributed among purchasers. (The builder is not allowed to make or keep any money off the interest)

3. Enhance consumer protection: Pre-registration 'rent' must be current-market-value

4. Enhance consumer protection: Any refunding of deposit must include:

- Full deposit
- Interest on said deposit (based on current interest rate)
- Difference of increased value. Increase of value will be determined on an average of current market sales of like properties in the area.

5. Enhance consumer protection by providing full-disclosure of project funding at anytime.

Thank you

Sandra Ania

One voice into thousands.

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