New $50,000 administrative penalties added for vendors and licensees who fail to issue refunds or complete purchase agreement documents

Plain-language summary · AI-assisted

Starting in 2027, new administrative penalties of up to $50,000 will apply to new-home vendors who fail to promptly refund a purchaser's money after a rescission notice is received. Licensed builders and vendors will also face up to $50,000 penalties if they fail to refund all money paid by a purchaser or fail to pay required interest on refunds. In addition, the existing penalty table covering addenda to purchase agreements is being replaced with a new, expanded table that covers a wider range of home types — freehold homes, condominium homes, vacant land condominium homes, and homes on parcels of tied land — all subject to a $50,000 maximum penalty for failing to complete or attach the required purchase agreement documents. Vendors and licensees operating in the new-home market should review their refund practices and purchase agreement processes to ensure compliance before these provisions take effect.

Who this affects
new home vendors · new home builders and licensees · purchasers of new homes · condominium developers