Regulation - Other
Cooling-off period, termination disclosure, and informing and protecting buyers of new homes
Regulation Number(s):
O. Reg. 573/22 ADMINISTRATIVE PENALTIES
O. Reg. 454/22 ADDENDA TO AGREEMENTS BETWEEN VENDORS AND PURCHASERS
O. Reg. 245/21 CODE OF ETHICS AND DISCIPLINE AND APPEALS COMMITTEES
O. Reg. 626/20 GENERAL
O. Reg. 625/20 DELEGATION OF REGULATION-MAKING AUTHORITIES
O. Reg. 627/20 GENERAL
O. Reg. 165/08 WARRANTY FOR DELAYED CLOSING OR DELAYED OCCUPANCY
O. Reg. [X] COOLING-OFF PERIOD (new, proposed)
O. Reg. 454/22 ADDENDA TO AGREEMENTS BETWEEN VENDORS AND PURCHASERS
O. Reg. 245/21 CODE OF ETHICS AND DISCIPLINE AND APPEALS COMMITTEES
O. Reg. 626/20 GENERAL
O. Reg. 625/20 DELEGATION OF REGULATION-MAKING AUTHORITIES
O. Reg. 627/20 GENERAL
O. Reg. 165/08 WARRANTY FOR DELAYED CLOSING OR DELAYED OCCUPANCY
O. Reg. [X] COOLING-OFF PERIOD (new, proposed)
Instrument Type:
Regulation - Other
Bill or Act:
New Home Construction Licensing Act, 2017 & Ontario New Home Warranties Plan Act
Summary of Proposal:
The Ministry of Public and Business Service Delivery and Procurement (the ministry) is seeking input on proposals that would:
1. implement a 10-day cooling-off period for purchasers of new freehold homes through:
a. regulatory changes,
b. updates to the addenda to the agreement of purchase and sale ("the addenda"), and
c. creating an information sheet that builders would have to provide buyers of new freehold homes;
2. provide for the disclosure of new freehold home purchase agreement terminations on the Ontario Builder Directory through regulatory changes;
3. create information sheets that builders would have to provide to buyers of:
a. new vacant land condominium homes, and
b. new freehold homes on a parcel of tied land; and
4. create an addendum that builders would have to give to buyers of new vacant land condominium homes.
1. implement a 10-day cooling-off period for purchasers of new freehold homes through:
a. regulatory changes,
b. updates to the addenda to the agreement of purchase and sale ("the addenda"), and
c. creating an information sheet that builders would have to provide buyers of new freehold homes;
2. provide for the disclosure of new freehold home purchase agreement terminations on the Ontario Builder Directory through regulatory changes;
3. create information sheets that builders would have to provide to buyers of:
a. new vacant land condominium homes, and
b. new freehold homes on a parcel of tied land; and
4. create an addendum that builders would have to give to buyers of new vacant land condominium homes.
Analysis of Regulatory Impact:
Through this consultation, the ministry is seeking feedback about the potential costs and impacts associated with these proposals, including any potential operating and administrative costs.
Note that the regulatory changes to support the cooling-off and related addenda and information sheet changes are expected to result in additional upfront and ongoing operating costs as well as administrative costs for builders of new freehold homes.
Regulatory changes to implement termination disclosures are not expected to add significant upfront and operating costs for builders of new freehold homes, but they may have a small increase in administrative burden.
To further inform this analysis, the Ministry of Public and Business Service Delivery and Procurement encourages you to provide your feedback.
Note that the regulatory changes to support the cooling-off and related addenda and information sheet changes are expected to result in additional upfront and ongoing operating costs as well as administrative costs for builders of new freehold homes.
Regulatory changes to implement termination disclosures are not expected to add significant upfront and operating costs for builders of new freehold homes, but they may have a small increase in administrative burden.
To further inform this analysis, the Ministry of Public and Business Service Delivery and Procurement encourages you to provide your feedback.
Further Information:
English - Consultation Paper
Proposal Number:
24-MPBSD014
Posting Date:
July 31, 2024
Comments Due Date:
September 16, 2024
Contact Address:
Ministry of Public and Business Service Delivery and Procurement
56 Wellesley St West, 6th Floor, Toronto ON, M7A 1C1
56 Wellesley St West, 6th Floor, Toronto ON, M7A 1C1