Decades after creating a 10-day cooling-off period for purchasers to reconsider a new-build condominium contract, the Ontario government has extended the same right to purchasers of detached and freehold newly constructed new homes.
“I have seen so many freehold purchasers be crushed by this lack of a mandatory cooling-off period. Some in high-pressure sales centre situations, some with limited English skills, and often a tendency to trust high-profile builders and our consumer protection laws.” Missing from the measures targeting freehold construction was another long-time ask of consumer advocates: rules for safeguarding deposits for new home purchases that would match the condo-builder requirements that deposits be held in legal trust accounts. In January, Tarion Inc., the province’s new home warranty insurance provider, reported it could lose $90-million on claims related to cancelled projects by freehold builders.