CBC News spoke to several people who bought homes in the Ashton Meadows development about 125 kilometers north of Toronto, and they say in recent weeks, Briarwood Development Group has told them they either have to pay more to build their homes or sign a mutual release agreement, lose the houses and get their deposits back. Briarwood attributes the sudden price increase to supply chain issues alongside high labor and material costs associated with the COVID-19 pandemic. The company said in a statement that it is “navigating these challenges and trying to find constructive ways forward.” Buyers, however, insist they are caught up in a case of corporate greed and say the Ontario government needs to do more to protect people in their shoes. While Premier Doug Ford previously said the province would step in to help shoppers in situations like these, experts say the government hasn’t done enough. “I feel like they’re trying to strong-arm me and I have nowhere to turn. I have nobody,” said buyer Jennifer LeFeuvre, who put a down payment on a home with her husband in 2019, before the pandemic. “I can’t even function at my job because of this. These people are getting away with murder and there’s nothing I can do.” LeFeuvre originally bought her home for just over $605,000, with a deposit of more than $62,500. He said the original closing date was supposed to be Aug. 31, 2021, but Briarwood began sending delay notices during the pandemic. Briarwood Development Group says the COVID-19 pandemic has caused significant problems for developers, stemming from supply chain issues and rising costs for labor and materials. (Doug Husby/CBC) In early May, LeFeuvre received a notice from the company informing her that her house would not be finished until 2022. She was offered a mutual release where their contract could be terminated and she would get her down payment back. LeFeuvre didn’t sign it—she and her husband just wanted their house built. In July, the couple was called to a meeting with Briarwood. LeFeuvre said they were presented with two options: either pay an additional $175,000 — nearly three years after their original contract was signed — or sign a mutual release form. “Basically what they were telling us is they don’t want to sell us this house. They want to sell it to someone else for this new price,” he said. “At that point, the only thing I could think was, ‘We’re not signing anything, we’re taking it to a lawyer.’
The developer says the pandemic is “devastating” for the industry
Buyer Dennis Williams, who originally bought his home for just under $787,000, said he ended up in the same boat. He received a notice from Briarwood about a week ago to pay an additional $175,000 for his home at the development or sign a mutual release form and get his more than $77,000 deposit back. “They ambush people,” Williams said. “This is 100 percent stock grabbing.” In an emailed statement sent to CBC News, Briarwood spokeswoman Svitlana Mandrus blamed the pandemic, saying it was “truly devastating” to the development industry. “Like many developers, we face these challenges and try to find constructive ways forward,” Mandrus said. “This included ongoing good faith discussions with homebuyers. “We have always been and will be committed to treating our partners and customers with the utmost respect and courtesy as we work with them to resolve the many challenges that have arisen in the wake of the pandemic.” Toronto real estate lawyer Bob Aaron says the province needs to do more to protect buyers in situations like these. (Farrah Merali/CBC) Toronto real estate lawyer Bob Aaron told CBC News he believes developers are using the pandemic as an excuse. “We just have a bunch of greedy developers,” he said. “And why is this happening? Because the government allows it.”
Province vows to crack down on ‘bad actors’
In November, Premier Doug Ford denounced similar practices linked to an apartment development in Barrie and said developers should shoulder the cost of price increases if they have already signed contracts and agreed to a final price. He pledged to end the practice “because it is completely unfair”. When asked again about the issue at a press conference on Friday, Ford said he has “zero tolerance” for developers who run up fees. “We will continue to monitor it and make sure they are not allowed to go in there and pull the rug out from under them [buyers]Ford said. Briarwood has offered affected buyers the option to sign a mutual release agreement, where they would lose their homes but get their deposits back. (Doug Husby/CBC) When asked what steps the province has taken to protect buyers, Ministry of Public and Business Services spokesman Matteo Guinci said in an email that Ontario is cracking down on “bad actors” and will defend prospective homeowners from “unethical and egregious » practices. , such as the cancellation of pre-construction projects. Guinci said the province has introduced a mandatory code of conduct for builders and sellers and has made moves to protect consumers, including allowing the Home Construction Regulatory Authority (HCRA) to fine developers $50,000 to $100,000. with the possibility of additional fines on top. “We unequivocally expect all manufacturers to operate in a professional manner with fairness, honesty and integrity to consumers,” Guinci said. It’s unclear if Briarwood is facing any HCRA action, though the authority’s website does not list any orders, disciplinary activities, charges or convictions tied to the numbered company listed as the seller in documentation provided by homebuyers in this story . HCRA could not respond to questions by the time this story was originally published. The HCRA launched in February 2021, with the responsibility of licensing and supervising approximately 6,000 developers and builders in Ontario. The agency says it responded to more than 600 complaints in its first year of operation.
The fines are too low, says the lawyer
Aaron, the real estate lawyer, said the province’s ethics code is flawed and doesn’t protect consumers in situations like these — calling fines of $50,000 to $100,000 a “permit” that amounts to the cost of doing business for developers. “These fees are so low that they don’t deter anyone for anything,” he said. “Ontario homebuyers deserve better… the government is not protecting consumers.” Meanwhile, people like LeFeuvre are left in limbo, watching a legal process that could take years — without her home being built. She said she voted for Ford in the last provincial election, partly with his stated support for hard-working Ontarians in mind. “Now, will you back me up?” asked.
