Developers Beware! The HCRA Can Revoke Your Licence

As a result of a number of developers cancelling condo projects in the last few years due to escalating costs of financing and construction, the Home Construction Regulatory Authority (HCRA) is cracking down on builders who are attempting to improperly increase the price of their units. In early 2023, the HCRA updated one of its advisories with respect to Price Escalations and Contract Terminations. Much of the advisory is not new, but it highlights the HCRA's focus as the "watchdog" for consumers. This note will briefly discuss two items in the Advisory, being (1) Price Escalations, and (2) Adjustments; however, readers are encouraged to read the entire Advisory for further information and guidance from the HCRA. The advisory can be found here.