Ontario Backtracks on New Deposit Interest Rules
The Revocation of Ontario Regulation 450/22 regarding Pre-Construction Condominiums
On October 21, 2022, just months before it was set to come into effect, the Province of Ontario revoked Ontario Regulation 450/22 (O. Reg 450/22).
The announcement of O. Reg 450/22 came just this past April, in an attempt to increase consumer protections in the pre-construction industry, fraught with last minute cancellations and bad faith transactions (see our article on the crackdown on these builders here).
However, O. Reg 450/22 was not without its flaws. Among concerns were that any increased costs to developers would just be passed along to purchasers. There was also a lack of clarity as to the scope of these changes, and whether they would apply to all deposits, or only ones on cancelled transactions. Our previous article, discussed these changes and the intended impact of the Regulation.
This article will be updated if any further information comes to light on the reasons for this revocation.
If you have a question about your pre-construction condominium, or how these interest rules impact your transaction, reach out to one of our qualified real estate lawyers today!