Ontario Construction News staff writer
Following an investigation by the Home Construction Regulatory Authority (HCRA), GC King Bond GP Inc. has agreed to return $1.1 million to homebuyers who were pressured into accepting unauthorized price hikes.
The HCRA’s probe revealed that the company had coerced purchasers of Richmond Hill townhouse units into agreeing to price increases, even though these changes were not part of the original purchase agreements.
The investigation uncovered that GC King Bond, which had sold 110 townhouse units in Richmond Hill between 2020 and 2021, sent a letter to buyers in May 2022 threatening that the project would fail unless buyers either agreed to a price increase or chose to cancel their contracts and receive their deposits back, the HCRA explained in a news release. However, the original contracts did not include provisions for such price increases or cancellations, and the company failed to inform buyers that they could simply uphold the original terms of the agreement.
“Licensed builders in Ontario must fully inform buyers of all their options, including the right to maintain original contract terms,” said Wendy Moir, CEO and Registrar of the HCRA. “Failing to do so—regardless of the builder’s financial or construction challenges—violates the province’s Code of Ethics.”
As part of the enforcement actions, GC King Bond has been required to return a portion of the $1.1 million in penalties to the buyers who agreed to the price increase. Additionally, the company has agreed to drop its demand for a further $5.3 million in price hikes from those buyers who had not yet responded.
“This resolution ensures that the project can move forward, with 110 purchasers receiving their homes, while reinforcing our commitment to consumer protection and holding builders accountable for their actions,” Moir added.
The Home Construction Regulatory Authority (HCRA) oversees the regulation and licensing of homebuilders in Ontario, ensuring that builders adhere to high standards of professionalism and ethics.
