Home builders

Ontario codifies the behavior of home builders


The code also aims to ensure that any advertising related to new homes is not “false, misleading, deceptive or illegal”.

Content of the article

The Ontario government will introduce a code of ethics for new home builders effective July 1, the latest in a series of measures designed to improve protection for home buyers.

Content of the article

In general, the new code encourages licensed builders to behave with integrity and not to intimidate or coerce potential buyers.

A key requirement is that builders “must be clear and truthful in describing the features, benefits and prices of a new home.” The code also aims to ensure that any advertising related to new homes is not “false, misleading, deceptive or illegal”.

Content of the article

Among other things, this section of the code appears to target any discrepancies that may appear between sales pitches and actual builders’ agreements, which may include disclaimers in favor of builders.

It is not clear whether the provisions of the new code will prevent builders from canceling projects only to reintroduce them later at a higher price.

Content of the article

The Home Construction Regulatory Authority – responsible for licensing new home builders – has the right to deny licenses if it finds the builders are not following the code of ethics. It is also in the process of setting up committees to discipline “bad actors”.

Earlier this year, the Progressive Conservative government stepped up the New Homes Ombudsman’s focus on consumers and stepped up his oversight of Tarion, the nonprofit consumer protection agency that administers the New Homes program. warranty for new homes in the province.

There is also a simpler appeal process for homeowners who wish to dispute a warranty claim assessment.

The trigger for recent government attention to new home construction has been an overheated industry that has attracted many new builders. Unsurprisingly, the number of consumer complaints has increased.