January 18 FOLA Real Estate Update

The latest news and updates from FOLA have been published. Their updates are below.

Conveyancer/Unity Fee Increase

We have received a large number of calls and emails from real estate lawyers across the province in response to the announcement by Do Process that transaction fees for The Conveyancer® and Unity® are increasing to $129 effective January 18, 2021.

We have sent a letter to Do Process, a copy of which is available here.  We have consulted with the LSO as well and the reality is that DoProcess is a private for-profit business which is entitled to price its products as it wishes. We urge all solicitors to express their concerns directly to the company.

Condominium Buyers Guide

Effective January 1, 2021, purchasers of new construction condominiums must be provided with Ontario’s Residential Condominium Buyers’ Guide, published by the Condominium Authority of Ontario (CAO). See here for further details.

New Regulator for Ontario New Home Builders

On February 1, 2021, the Home Construction Regulatory Authority (HCRA) will assume the registration/licensing responsibilities currently held by Tarion.  According to its website:

  • The Home Construction Regulatory Authority will be responsible for regulating and licensing the people and companies who build and sell new homes in Ontario.

  • The HCRA will enforce high professional standards for competence and conduct in the home building industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA will also improve consistency across the sector, curtailing unethical and illegal builders and fostering a fair marketplace.

  • In addition to licensing, the HCRA will provide educational information for consumers on their home buying journey.

  • The HCRA will manage the Ontario Builder Directory (OBD) – which is the official source of background information about each of Ontario’s more than 5,000 licensed builders/vendors.

Ontario Standard Closing Documents

At the May 2017 FOLA Plenary, all 47 Ontario county and district law associations unanimously approved and endorsed the Standard Closing Documents prepared by the Working Group on Lawyers and Real Estate for use in residential resale transactions. These standard documents are available on the Working Group website. Letters of Support for the Standard Closing Documents were also received from LawPRO and the Director of Titles.

As set out in the Rationale Document, the benefits of using the standard closing documents include:

  1. Less paper, no repetition, and more efficiencies, as the content of the documents can easily be confirmed as being either unamended or modified;

  2. Less time needed to negotiate the content of closing documents;

  3. Adherence to province-wide standards;

  4. Clients’ rights and obligations are protected based on the APS;

  5. Either party can easily prepare the documents for the other side; and

  6. No need to delete inapplicable paragraphs as they are worded conditionally.

Government Consultations

  • Potential Permanent Changes to Enable Digital and Virtual Processes under the Ministry of Government and Consumer Services Business Law and Condominium Statutes – details available here

    Comments due date: February 8, 2021

  • Improvements to Ontario’s New Home Warranty and Protection Program (ONHWPA Phase 2) – details available here

    Comments due date: February 12, 2021

  • Proposed Code of Ethics and Discipline Committee and Appeals Committee Regulations to be made under the New Home Construction Licensing Act, 2017 – details available here

    Comments due date: February 13, 2021

Real EstateIrene WardFOLA, Updates, OntarioComment