“We understand that there may be instances of unexpected increases in costs to the builder. But there are rules that must be followed to ensure fairness to all parties and prevent price gouging,” Moir explains.
“If builders want to make a case for purchasers helping to cover the unanticipated costs, they should provide reasons and sufficient evidence,” says Moir. “However, a licensee may not threaten to breach their contract if the purchaser does not agree to a requested increase. A purchaser faced with a request of this nature needs to have enough clear information and independent legal advice in order to be able to make an informed decision without coercion.
Advising purchasers of the amount of the increase and the reason for it, including a summary of how the increase was calculated and how the figure departs from the initial budgeting for the project. Recommending that purchasers obtain legal advice from a lawyer who is familiar with real estate transactions.