BUILDER REIMBURSES PURCHASERS AS RESULT OF HCRA INVESTIGATION

GC King Bond also withdraws pursuit of an additional $5.3 million in price increases

TORONTO, Dec. 16, 2024 /CNW/ - An investigation by the Home Construction Regulatory Authority (HCRA) has resulted in GC King Bond GP Inc. returning $1.1 million to new home purchasers. The HCRA determined that GC King Bond pressured Richmond Hill townhouse buyers to agree to a price increase, despite knowing that this was not stipulated in their agreements of purchase and sale.

The HCRA investigation found that GC King Bond, having sold 110 townhouse units in Richmond Hill in 2020-2021, sent a letter to purchasers in May 2022 advising that the project would fail unless they agreed to a price increase or terminate the contract and get their deposits back. However, the original contracts did not include early termination conditions to allow price increases or early cancellations, and GC King Bond never told purchasers that maintaining the original terms of the contract was a valid option.

"Licensed builders in Ontario are required to inform purchasers of all their options," says Wendy Moir, the HCRA's Chief Executive Officer and Registrar. "Failure to do so, even for legitimate financial or construction reasons, goes against the province's Code of Ethics."

Through the HCRA's administrative penalties, purchasers who agreed to a price increase will be reimbursed according to their share of the $1.1 million in penalties. GC King Bond has also agreed to forgo the demand for an additional $5.3 million in price increases from purchasers who had not yet responded. 

"This outcome will enable the project to be completed – allowing 110 purchasers to receive their homes, upholding our consumer protection mandate while holding builders accountable," says Moir.

About the HCRA

The Home Construction Regulatory Authority is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders.

In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and hosts the Ontario Builder Directory – the authoritative source of background information about each of Ontario's nearly 7,000 new home builders and vendors.

SOURCE Home Construction Regulatory Authority (HCRA)

Tess Lin, [email protected]