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Some buyers who years ago purchased builds in a housing development in Stayner,
Ont., are fuming and calling for government intervention after they were told
they would need to fork over $175,000 above what was agreed upon in contracts
with the developer before their homes will finally be built.

CBC News has spoken with multiple people who bought homes in the Ashton Meadows
development roughly 125 kilometres north of Toronto, and who say that in recent
weeks, Briarwood Development Group has told them they either need to pay more to
get their homes built, or sign a mutual release agreement, lose the homes and
get their deposits back.



Briarwood maintains the sudden price increase is due to supply chain issues
alongside high costs of labour and materials linked to the COVID-19 pandemic.
The company said in a statement it has been "navigating these challenges and
trying to find constructive ways forward."

Buyers, however, are insistent they're caught up in a case of corporate greed,
and say the Ontario government needs to do more to protect people in their
position. While Premier Doug Ford previously said the province would step in to
help buyers in situations such as these, experts say the government hasn't done
enough.

"I feel like they are trying to strong-arm me and I have nowhere to turn to. I
have nobody," said buyer Jennifer LeFeuvre, who put down a deposit 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 that I can do."

LeFeuvre originally purchased her home for just over $605,000, with a deposit of
more than $62,500. She said the initial closing date was supposed to be Aug. 31,
2021, but Briarwood started sending out delay notices during the pandemic.




At the beginning of May, LeFeuvre received notice from the company informing
her her home still wouldn't be finished in 2022. She was offered a mutual
release where their contract could be broken and she would get her deposit back.
LeFeuvre didn't sign it — she and her husband just wanted their house built.

In July, the pair were called in for a meeting with Briarwood. LeFeuvre
said they were presented with two options: either pay an extra $175,000 — nearly
three years after they had initially signed their contract — or sign a mutual
release form.

"Basically what they were saying to us is they don't want to sell us this house.
They want to sell it to somebody else for this new price," she said.

"In that moment, the only thing I could think of is, 'We're not signing
anything, we're taking this to a lawyer.'"




DEVELOPER SAYS PANDEMIC 'DEVASTATING' FOR INDUSTRY

Buyer Dennis Williams, who originally purchased his home at just under $787,000,
said he ended up in the same boat. He got a notice from Briarwood about a week
ago to pay an additional $175,000 for his home in the development, or to sign a
mutual release form and get his deposit of more than $77,000 back.

"They're ambushing people," Williams said.

"This is 100 per cent an equity grab."

In an email statement sent to CBC News, Briarwood spokesperson Svitlana Mandrus
blamed the pandemic, saying it has been "truly devastating" for the development
industry.




"Like many developers, we have been navigating these challenges and trying to
find constructive ways forward," Mandrus said. "This has included having
continuing good-faith discussions with homebuyers. 

"We always have been and always 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 since the pandemic."




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 that happening? Because the government allows it."




PROVINCE PLEDGES TO CRACK DOWN ON 'BAD ACTORS'

In November, Premier Doug Ford denounced similar practices linked to a condo
development in Barrie, and said developers should bear the cost of price
increases if they have already signed contracts and agreed to a final price.

He pledged to put an end to the practice "because it's totally unfair." When
asked about the issue again at a news conference Friday, Ford said he has "zero
tolerance" for developers tacking on fees.

"We're going to continue monitoring it, and we're going to make sure that they
aren't allowed to go there and pull the carpet out from underneath [buyers],"
Ford said.




When asked what measures the province has put in place to protect buyers,
Ministry of Public and Business Service Delivery spokesperson Matteo Guinci said
in an email that Ontario is cracking down on "bad actors" and will defend future
homeowners from "unethical and egregious" practices, such as cancelling
pre-construction projects.



Guinci said the province has introduced a mandatory code of ethics for builders
and vendors, and made moves to protect consumers, including enabling the Home
Construction Regulatory Authority (HCRA) to levy fines of $50,000 to $100,000 on
developers, with the possibility of additional fines added on top.

"We unequivocally expect all builders to operate in a professional manner with
fairness, honesty, and integrity toward consumers," Guinci said.

In a statement sent to CBC News Monday, HCRA spokesperson Tess Lin said the
organization "cannot comment on ongoing matters at this time concerning
Briarwood Homes/Briarwood Development Group," but said the authority is "aware
of these concerns and [is] looking into the matter."

The authority's website lists no orders, disciplinary activities, charges or
convictions linked to the numbered company listed as the vendor on documentation
provided by homebuyers in this story.

The HCRA was launched in February 2021, with the responsibility of licensing and
overseeing some 6,000 developers and builders in Ontario. The agency says it
responded to more than 600 complaints in its first year of operation.




FINES FAR TOO LOW, LAWYER SAYS

Aaron, the real estate lawyer, said the province's code of ethics is ill-defined
and does nothing to protect consumers in situations like these — calling
penalties of $50,000 to $100,000 a "permission licence" that amounts to the cost
of doing business for developers.

"Those charges are so low that they don't discourage anybody for anything," he
said.

"Ontario homebuyers deserve better … the government is not protecting
consumers."

In the meantime, people like LeFeuvre are left in limbo and staring down a legal
process that could take years — all the while without her home being built.

She said she voted for Ford in the last provincial election, in part with his
stated support for hard-working Ontarians in mind.

"Now, are you going to support me?" she asked.

Microsoft may earn an Affiliate Commission if you purchase something through
recommended links in this article.



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