Delay on new build has costly impact on buyer

When Jennifer LeFeuvre and her new husband made a deposit on a new home in 2019, she imagined that they would be moved in by August 2021. After shopping around the area, they settled on a home in Phase One of the Ashton Meadows community in Stayner by the Briarwood Development Group. They liked the finishes and the price at $534,000 plus upgrades, the home would allow ample space for the two of them plus room to create a basement in-law suite for her aging mother. 

As is often the case with new home construction, there were some delays. Initially, they were told that occupancy would be delayed until December 2021. “Not that big a deal”, thought LeFeuvre so they went ahead and listed the townhouse where they were living, put furniture in storage and moved in with her mother. Shortly after that, they were advised that the home should be ready in April 2022. The next communication from Briarwood was that due to the exceptional circumstances created by the pandemic occupancy would be delayed indefinitely. 

Last June or July, LeFeuvre received a vaguely worded email from the builder asking them to come into the office for a meeting. She and her husband took the following day off work and travelled to the Briarwood headquarters in Richmond Hill. They met with the salesman who originally sold them the house. He presented them with Phase 5 pricing showing that their home was now valued at over a million dollars. They were advised that the house would be ready in June 2023, but they would have to pay an additional $175,000 or take back their deposit and cancel the contract. 

Lefeuvre was thunderstruck. How was this even possible when they had a contract stipulating the sale price they had agreed on?  She says Briarwood representatives told them there were no other options and that if they tried to force them to deliver on the contract, the company would drag it out in court indefinitely. 

Following that meeting, Lefeuvre started a Facebook group which quickly grew to more than 200 members, all of whom were having similar problems with Briarwood. She contacted her MPP, the Home Construction Regulatory Authority and the Ministry of Consumer and Commercial Relations and hired a lawyer. Lefeuvre and her husband have now issued a final offer to Briarwood asking for a portion of the increased in value of the home plus storage fees and other expenses they have incurred. The builder has one week to respond. 

Svitlana Mandrus, speaking on behalf of Briarwood, said Phase 1 is more than 90 per cent sold out. Sales are just starting on Phase 2 for homes that will be ready for occupancy in about two years. She says they have been advised by their legal department not to discuss the request for further payments from buyers with existing contracts.