TORONTO, May 27, 2024 (GLOBE NEWSWIRE) -- “Today, the Government of Ontario announced the Homeowner Protection Act, 2024, which includes banning registrations for Notices of Security Interest (NOSIs), implementing a 10-day cooling-off period for purchases of newly built freehold homes, consulting on illegal building and selling, and building more housing near transit.
OREA commends Minister of Public and Business Service Delivery, Todd McCarthy, and the Ford Government for this legislation and their efforts to protect vulnerable homeowners from bad actors who unfairly exploit the use of NOSIs. Too many Ontarians, when selling their home, have been surprised by one or more NOSIs – fine print in contracts for water coolers, furnaces, or security systems that include exorbitant buyout charges to be paid before the home can be sold. Banning NOSI registrations will help reduce additional and unnecessary fees being tacked onto the price tag of a home.
OREA is also pleased to see that the Ministry will implement a 10-day cooling-off period for purchasers of newly built freehold homes, a protection that is already in place for pre-construction condo sales in Ontario. Extending this protection to newly constructed homes will enhance consumer protection by allowing buyers a 10-day period to review and cancel an agreement without penalty, leveling the playing field between Ontario’s hardworking families and well-resourced corporate developers with a team of lawyers. Ontario’s REALTORS® commend the province for not extending this policy to resale homes – which OREA has long emphasized would negatively impact both buyers and sellers – as it would undermine certainty in resale transactions, which are typically between private citizens and do not involve corporate developers, and could lead to speculation.
In addition, mandating public disclosure of a builder’s history of canceled purchase agreements for newly built freehold homes is a welcome policy that will provide consumers with transparency and peace of mind. Together, these improvements will establish a higher standard for honesty, integrity, and professionalism in the homebuilding and buying process.
Finally, OREA would like to commend the Ministry for acting on one of our key recommendations outlined in our most recent policy report, Analysis of Ontario’s Efforts to Boost Housing Supply – modernizing zoning to support greater density along transit corridors. By exempting specific transit-oriented community lands from immunity provisions in the Planning Act, it will be easier and faster for the province to add ‘missing-middle’ homes to Ontario’s housing stock and increase overall density in areas that can best support high population levels.
The Homeowner Protection Act, 2024 is a significant step towards protecting homeowners from bad actors during the largest financial transaction most Ontarians will make in their lives, and towards building much-needed housing supply across the Province.”
– Tim Hudak, CEO of the Ontario Real Estate Association
For more information, please contact:
Jean-Adrien Delicano
Manager, Media Relations
JeanAdrienD@orea.com
416-459-6059
