Tarion is adding a new form to pre-construction condo purchase agreements
Ontario homebuilder regulator Tarion is adding a new form to pre-construction condo purchase agreements that it says will help alert consumers to the risk that a project may never be completed.
But disappointed condo buyers say it won’t help deter developers from cancelling projects.
The document, which is filled out by the seller and signed by both the vendor and buyer, includes a number of warnings that Tarion says will help flag the possibility that developers sometimes kill projects and refund deposits.
There is always a risk a project or a phase of a project can be delayed or cancelled and the new sheet highlights that up front, said a Tarion spokesperson.
The measure comes in the wake of a series of high-profile project cancellations, including two multi-tower developments — Liberty Development’s Cosmos Condos and Gupta Group’s Icona towers at the Vaughan Metropolitan Centre.
The buyers in those projects had their deposits returned, in some cases years later. But by then, real estate values had risen so the money would no longer buy the same kind of home.
But lawyer Ted Charney, who has acted on behalf of the Icona and Cosmos buyers, says the new measures don’t do anything to enhance consumer protection because they don’t prevent or deter builders from cancelling projects.