Strengthening Protection for Ontario Consumers Act, 2017 — Bill 166 (41st Parliament, 2nd Session)

Bill 166, 41-2

Ontario — Bills

2ND SESSION, 41ST LEGISLATURE, ONTARIO 66 ELIZABETH II, 2017 Bill 166

An Act to amend or repeal various Acts and to enact three new Acts with respect to the construction of new homes and ticket sales for events The Hon. T. MacCharles Minister of Government and Consumer Services Government Bill 1st Reading October 5, 2017 2nd Reading 3rd Reading Royal Assent

EXPLANATORY NOTE The Bill amends or repeals various Acts and enact s three new Acts with respect to the construction of new homes and ticket sales for events.

SCHEDULE 1 NEW HOME CONSTRUCTION LICENSING ACT, 2017 The

Schedule enacts the New Home Construction Licensing Act, 2017.

Part I sets out

definitions.

Part II allows the Lieutenant Governor in Council , by regulation, to designate a not -for-profit corporation without share capital as the regulatory authority of new home builders and vendors. If the regulatory authority is designated, the administration of specified provisions of the Act and the regulations made under the Act is delegated to the authority and th e authority is required to carry out the administration of the delegated provisions. The

Part includes mechanisms for government oversight, including requirements for an administrative agreement between the regulatory authority and the Minister, annual and other rep orts by the authority, competency criteria for board members and oversight by the Auditor General. The regulatory authority is not an agent of the Crown. Employees of the authority are not Crown employees. There is no Crown liability for actions of the authority and the authority is required to indemnify the Crown for damages or costs.

The regulatory authority is able to set forms and fees in accordance with processes and criteria approved by the Minister. If the regulatory authority is designated, it is re quired to appoint a registrar and Director. Otherwise the Minister responsible for administering the Act appoints the registrar and the Director.

Part III describes the licensing regime to be administered by the regulatory authority. A person is required to be licensed as a vendor in order to sell or transfer a new home or to offer to sell or transfer a new home. A person is required to be licensed as a builder in order to arrange for, manage or undertake the construction of a new home. A licence may be sub ject to conditions, including conditions that the registrar applies, subject to the right to a hearing by the Licence Appeal Tribunal. Those conditions include conditions that the registrar under the Protection for Owners and Purchasers of New Homes Act, 2017 directs the registrar under the current Act to apply.

Part IV sets out rules that apply to licensees , including the disclosure of information that a vendor of a new home is required to make to the purchaser and that a builder of a new home is required to make to the owner.

Part V allows the registrar to deal with complaints made about licensees. In addition, a discipline committee and an appeals committee are established. If a committee finds that a licensee has breached the code of ethics established b y a Minister’s regulation, the licensee is subject to a fine of up to $25,000 or a lesser prescribed amount. The Part allows inspectors appointed by the registrar to conduct regulatory inspections without a warrant and investigators appointed by the Director to conduct both an investigation with a warrant and searches in exigent circumstances.

In certain circumstances that are set out and that involve the protection of clients, the Director may also freeze the assets of licensees and former licensees, as well as the assets of non -licensees who are alleged to have engaged in activities for which licensing is required under the Act. The Director may apply to court for a restraining order. The Part also creates offences.

An assessor appointed by the registrar m ay, by order, impose an administrative penalty against a person if the assessor is satisfied that the person has contravened or is contravening a prescribed provision of the Act or the Protection for Owners and Purchasers of New Homes Act, 2017 or the regulations made under either Act. The prescribed provisions are those prescribed by a regulation of the Lieutenant Governor in Council.

Part VI consists of general provisions dealing with such matters as the preservation of secrecy and the service of documents. It also provides regulation -making powers for the Lieutenant Governor in Council, the Minister and the regulatory authority. Either the Lieutenant Governor in Council or the Minister may delegate regulation -making authority to the regulatory authority. The Part also deals with transitional issues arising when

Schedule 2 repeals the Ontario New Home Warranties Plan Act.

Part VII consists of a few future amendments to the Act.

Part VIII makes consequential amendments to other Acts arising out of the repeal of the Ontario New Home Warranties Plan Act.

SCHEDULE 2 PROTECTION FOR OWNERS AND PURCHASERS OF NEW HOMES ACT, 2017 The

Schedule enacts the Protection for Owners and Purchasers of New Homes Act, 2017.

Part I deals with the purposes of the Act,

definitions and

interpretation.

Part II allows the Lieutenant Governor in Council, by regulation, to designate a not -for-profit corporation without share capital as the warranty authority. If the warranty authority is designated, the administration of specified provisions of the Act and the regulations made under the Act is delegated to the authority and the authority is required t o carry out the administration of the delegated provisions. The

Part includes mechanisms for government oversight, including requirements for an administrative agreement between the warranty authority and the Minister, annual and other reports by the autho rity, competency criteria for board members and oversight by the Auditor General. The warranty authority is not an agent of the Crown. Employees of the authority are not Crown employees. There is no Crown liability for actions of the authority and the authority is required to indemnify the Crown for damages or costs.

The warranty authority is able to set forms and fees in accordance with processes and criteria approved by the Minister. The warranty authority is required to appoint a registrar and Director.

Part III continues the Ontario New Home Warranties Plan under the name Ontario New Home Warranties and Protection Plan. A vendor is not allowed to sell or offer to sell a new home unless the vendor has met certain conditions . They include the following: th e vendor must be licensed under the New Home Construction Licensing Act, 2017 and must have received confirmation from the registrar that the new home qualifies for enrolment in the Plan, if construction of the home has not commenced, or that the home has been enrolled in the Plan, if construction of the home has commenced.

A builder is not allowed to commence constructing a new home unless the builder has met certain conditions . They include the following: the builder must be licensed under the New Home Co nstruction Licensing Act, 2017 and must have received confirmation from the registrar that the new home has been enrolled in the Plan. The registrar may exercise the following powers subject to the right of a person to a hearing by the Licence Appeal Tribu nal. The registrar may suspend or revoke a determination that a new home qualifies for enrolment in the Plan at any time before the registrar enrols the home in the Plan.

The registrar may cancel the enrolment of a new home in the Plan only if the registrar determines that the home ceases to meet the definition of a new home. The Part sets out warranties that apply to a new home and certain measures of protection for money paid to a vendor or a builder.

Part IV deals with claims for compensation out of the guarantee fund and the process for making those claims.

Part V allows the registrar to deal with complaints made about licensees. In addition, the warranty authority is required to make available an ombudsperson to inquire into and respond to the administration of the Act by the warranty authority and to make recommendations in that regard. The Part allows inspectors appointed by the registrar to conduct regulatory inspections without a warrant and investigators appointed by the Director to conduct both an investigation with a warrant and searches in exigent circumstances. The Part also creates offences.

Part VI consists of general provisions dealing with such matters as the preservation of secrecy, the service of documents and information that the registrar is require to provide to the registrar under the New Home Construction Licensing Act, 2017. The Part also provides regulation -making powers for the Lieutenant Governor in Council, the Minister and the warranty authority. Either the Lieutenant Governor in Council or the Minister may delegate regulation -making authority to the warranty authority. The Part also deals with transitional issues arising when the Ontario New Home Warranties Plan Act is repealed.

Part VII consists of a few future amendments to the Act.

Part VIII repeals the Ontario New Home Warranties Plan Act and makes consequential amendments to other Acts.

SCHEDULE 3 TICKET SALES ACT, 2017 The

Schedule enacts the Ticket Sales Act, 2017 and repeals the Ticket Speculation Act.

Part I (Definitions) sets out the

definitions relevant to the Act. It defines a “ticket business” as a primary seller, secondary seller or operator of a secondary ticketing platform.

Part II (Ticket Sales and Software) sets out prohibitions that apply to ticket sales and the u se of certain software. Sales above face value on the secondary market are permitted providing that certain conditions are met and sales of tickets that are not in a person’s possession or control are prohibited. In addition, the use or sale of software in tended to circumvent certain controls and measures on a website, online service or electronic application of a ticket business is prohibited.

Part III (Ticket Business Transparency) sets out disclosure and transparency obligations for ticket businesses. Th ese include requirements to disclose the number of tickets available to an event and the face value and total price of the ticket. It als o requires ticket businesses to ensure that any dollar amounts listed in a ticket offer are in Canadian currency, unles s otherwise clearly indicated, and requires them to disclose the location of the seat or standing area that the ticket entitles the ticke t holder

iii to occupy. Secondary sellers are required to disclose their name, location and contact information when making a ticket available for sale. The prohibition against the sale of tickets by related primary and secondary sellers in the Ticket Speculation Act is maintained. Ticket businesses that make tickets available for sale or that facilitate the sale of a ticket a re required to be incorporated under the laws of Canada or Ontario or to maintain an address in Ontario.

Part IV (Right of Action) establishes a right of action for ticket businesses or ticket purchasers who have suffered a loss a s a result of a person’s contravention of the Act.

Part V (Complaints, Inspections and Investigations) establishes a complaints, inspection and investigation regime. The Ministry has the power to receive complaints, make inquiries and mediate and resolve complaints concerning matters that may be in contravention of the Act. The Director may appoint or designate inspectors and investigators to ensure compliance with certain provisions of the Act. The Director has the power to make orders respecting false, misleading or deceptive misrepresentations and has the power to freeze assets in certain situations.

The Director may also issue compliance orders and apply to the Superior Court of Justice for restraining orders to ensure compliance with the Act. The Director may delegate some of his or her powers in the Act to inspectors, including the power to make various orders.

Part VI (General) sets out service, evidence and confidentiality rules.

Part VII (Administrative Penalties) allows the Director to impose administrative penalties against ticket businesses that are contravening a prescribed provision of the Act or of the regulations. The Director may delegate his or her power to make these orders to inspectors. The orders may be appealed to the Licence Appeal Tribunal.

Part VIII (Offences) provides that it is an offence to fail to comply with an order, direction or other requirement under the Act or to contravene or fail to comply with certain provisions in the Act. The maximum penalty for an individual is $50,000 or imprisonment for a term of not more than two years less a day, or both, and the maximum penalty for a corporation is $250,000.

Part IX (Regulations) sets out the regulation-making powers of the Lieutenant Governor in Council and of the Minister.

Part X (Complementary Amendment, Repeal and Revocation) makes a complementary amendment to the Licence Appeal Tribunal Act, 1999, repeals the Ticket Speculation Act and revokes the regulation made under the Ticket Speculation Act.

SCHEDULE 4 AMENDMENTS TO THE ONTARIO NEW HOME WARRANTIES PLAN ACT The

Schedule amends the Ontario New Home Warranties Plan Act . Most of the

Schedule comes into force on the day the Bill receives Royal Assent, unlike Schedules 1 and 2 which come into force mainly on proclamation. The main amendments are the following. The Corporation designated to administer the Act is authorized to use the guarantee fund to make payments or loans to any corporation that is designated to administer any successor Act or that, according to the Minister, may be so designated. The Minister can appoint an individual as an administrator of the Corporation for the purposes of assuming control of it and responsibility for its activities. The Corporation is required to pay oversight fees to the Minister. The

Schedule clarifies that the amount of payment that a person is entitled to receive out of the guarantee fund is not limited to deposits. It also describes the evidence that a claimant for payment out of the guarantee fund must present in a claim. The powers of the Lieutenant Governor in Council to make r egulations under the Act are expanded to cover such things as governing the expenses incurred and expenditures made by the Corporation in carrying out its duties under the Act and governing transitional matters when the designation of the Corporation is revoked.

A number of the regulation- making powers of the Corporation are made subject to approval by the Minister. They include imposing conditions of registration for vendors and builders under the Act, governing deposits or other payme nts made to vendors or builders and governing the entitlement of an owner to payment out of the guarantee fund.

SCHEDULE 5 OTHER AMENDMENTS The

Schedule clarifies the provisions of the Condominium Management Services Act, 2015, the Funeral, Burial and Cremation Services Act, 2002, the Motor Vehicle Dealers Act, 2002, the Real Estate and Business Brokers Act, 2002 and the Travel Industry Act, 2002 that allow regulations made by the Lieutenant Governor in Council to delegate to the Minister under those Acts the power to make certain regulations. Real Estate and Business Brokers Act, 2002 The

Schedule increases the maximum amount of the fine that the discipline committee can impose on a registrant if the committee finds that the registrant has failed to comply with the code of ethics. The

Schedule also confers new regulation - making powers on the Lieutenant Governor in Council: for example, the power to specify circumstances in which registrants are prohibited from representing more than one party in a trade.

iv Travel Industry Act, 2002 The

Schedule amends the Act to combine the registration categories of travel agent and travel wholesaler into a new category of travel seller. It also creates a new registration category of travel salesperson. The registrar or a person designated in writing by the registrar is allowed to conduct an inspection of the business premises of any person or entity if the registrar has reasonable grounds to believe that an activity for which registration under the Act is required is occurring.

The registrar may require a travel salesperson to take further educational courses if the registrar receives a complaint abou t the salesperson. The discipline committee may require a travel salesperson to take further educational courses if the committee finds that the salesperson has failed to comply with the code of ethics.

An assessor appointed by the registrar is allowed to impose an administrative penalty on a person if the assessor is satisfied that the person has contravened or is contravening a pr escribed provision of the Act or the regulations, where the provision is prescribed by a regulation of the Lieutenant Governor in Council. The person against whom an order imposing an administrative penalty is made can appeal the order to the person prescr ibed by a regulation made by the Minister or to the Licence Appeal Tribunal if the Minister has not prescribed a person for that purpose.

Bill 166 2017

An Act to amend or repeal various Acts and to enact three new Acts with respect to the construction of new homes and ticket sales for events CONTENTS 1. Contents of this Act 2. Commencement 3.

Short title

Schedule 1 New Home Construction Licensing Act, 2017

Schedule 2 Protection for Owners and Purchasers of New Homes Act, 2017

Schedule 3 Ticket Sales Act, 2017

Schedule 4 Amendments to the Ontario New Home Warranties Plan Act

Schedule 5 Other Amendments H er Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows: Contents of this Act 1 This Act consists of this section, sections 2 and 3 and the Schedules to this Act. Commencement 2

(1) Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

(2) The Schedules to this Act come into force as provided in each Schedule.

(3) If a

Schedule to this Act provides that any of its provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title 3 The

short title of this Act is the Strengthening Protection for Ontario Consumers Act, 2017.

SCHEDULE 1 NEW HOME CONSTRUCTION LICENSING ACT, 2017 CONTENTS

PART I

INTERPRETATION 1.

Definitions

PART II ADMINISTRATION DELEGATION 2. Designation of regulatory authority 3. Administrative agreement 4. Information sharing 5. Compliance by regulatory authority 6. Review 7. Conflict 8. Revocation of designation 9. Condition precedent for exercise of certain powers REGULATORY AUTHORITY 10. Competency criteria for board members 11. Composition of the board 12. Minister’s appointments to board 13. Appointment of chair 14. Public access to corporate information 15. Employees 16. Not Crown agency 17. No personal liability, Crown employee 18. No Crown liability 19. Indemnification of the Crown 20.

No personal liability, board members and others 21. Not public money 22. Audit 23. Reports 24. Administrator 25. Status of board during administrator’s tenure POWERS AND DUTIES OF REGULATORY AUTHORITY 26. Additional powers 27. Change to objects 28. Right to use French 29. Forms and fees 30. Advisory councils, advisory process 31. Duty to inform Minister 32. Advice to the Minister 33. Research and public education 34. Information for warranty authority MISCELLANEOUS 35. Registrar 36. Director

PART III LICENSING 37. Licences required 38. Application for licence 39. Conditions of licence 40. Registrar’s powers with hearing 41. Voluntary cancellation 42. Expiry of licence 43. Notice of conditions or proposal 44. Continuation pending renewal 45. Immediate suspension 46. Further application 47. Licence not transferable 48. Sale by person other than vendor

PART IV REGULATION OF LICENSEES 49. Notice of change of address for service

3 50. Notice of change of control 51. Notice of issue or transfer of shares 52. Notice of prescribed material change 53. Disclosures by licensees 54. Misrepresentations prohibited 55. Duties of licensees

PART V COMPLAINTS, DISCIPLINE, INSPECTIONS, INVESTIGATIONS AND ENFORCEMENT COMPLAINTS AND DISCIPLINE 56. Complaints 57. Discipline proceedings INSPECTIONS AND INVESTIGATIONS 58. Inspectors 59. Inspections without warrant 60. Appointment of investigators 61. Investigations with warrant 62. Seizure of things not specified 63. Searches in exigent circumstances ORDERS AND OFFENCES 64. Order re false advertising 65. Freeze order, licensees and former licensees 66. Freeze orders, non-licensees 67. Restraining order 68. Offences 69. Orders for compensation, restitution 70. Default in payment of fines 71.

Liens and charges ADMINISTRATIVE PENALTIES 72. Assessors 73. Order 74. Appeal 75. Effect of paying penalty 76. Enforcement

PART VI GENERAL 77. Confidentiality 78. Service 79. Public information 80. Lieutenant Governor in Council regulations 81. Minister’s regulations 82. Regulatory authority regulations 83. Transition

PART VII AMENDMENTS TO THIS ACT 84. Amendments to this Act

PART VIII CONSEQUENTIAL AMENDMENTS 85. Building Code Act, 1992 86. Licence Appeal Tribunal Act, 1999 87. Protecting Condominium Owners Act, 2015

PART IX COMMENCEMENT AND

SHORT TITLE 88. Commencement 89.

Short title

PART I

INTERPRETATION

Definitions 1

(1) In this Act, “administrative agreement” means the agreement described in subsection 3 (1); (“accord d’application”) “administrative penalty” means an administrative penalty imposed under

section 73; (“pénalité administrative”)

4 “assessor” means an assessor appointed under subsection 72 (2) who is authorized to impo se an administrative penalty or the registrar acting as an assessor; (“évaluateur”) “builder” means, subject to the prescribed requirements or restrictions, if any, a person who arranges for, manages or undertakes the construction of a new home or who agrees to do any of those things, whether the person is acting, (

a) for the purposes of selling or transferring the home, as prescribed, (

b) under a contract with a vendor, (

c) under a contract with an owner, or (

d) in the prescribed circumstances; (“constructeur”) “common elements” means all the condominium property except the condominium units; (“parties communes”) “common elements condominium corporation”, “common expenses” and “common interest” have the same meaning as in the Condominium Act, 1998; (“association condominiale de parties communes”, “dépenses communes”, “intérêt commun”) “condominium corporation” means a corporation as defined in subsection 1 (1) of the Condominium Act, 1998; (“association condominiale”) “condominium declaration” means a declaration as defined in subsection 1 (1) of the Condominium Act, 1998; (“déclaration de condominium”) “condominium property” means property as defined in subsection 1 (1) of the Condominium Act, 1998; (“propriété condominiale”) “condominium unit” means a unit as defined in subsection 1 (1) of the Condominium Act, 1998; (“partie privative de condominium”) “delegated provisions” means the provisions of this Act and the regulations that the Lieutenant Gove rnor in Council has designated as such under subsection 2 (2); (“dispositions déléguées”) “Director” means the Director appointed under subsection 36 (1); (“directeur”) “employ” means to employ, appoint, authorize or otherwise arrange to have another person act on one’s behalf, including as an independent contractor; (“employer”) “equity share” means, in respect of a corporation, a share of a class or series of shares of a corporation that carries a vot ing right either under all circumstances or under circumstances that have occurred and are continuing; (“action participante”) “information sharing agreement” means any of the agreements described in subsection 4 (3); (“ accord d’échange de renseignements”) “inspector” means an inspector appointed under subsection 58 (2) or the registrar acting as an inspector; (“inspecteur”) “investigator” means an investigator appointed under subsection 60 (1); (“enquêteur”) “licensee” means the holder of a licence issued under this Act; (“titulaire de permis”, see also “ agréé”) “Minister” means the Minister of Government and Consumer Services or any other member of the Executive Council to whom the responsibility for the administration of this Act is assigned under the Executive Council Act ; (“ministre”) “new home” means , subject to the prescribed re quirements or restrictions, if any, any of the following property and any structure or appurtenance used in conjunction with it: 1.

A building that is a residential dwelling , whether detached or attached to one or more other buildings by a common wall. 2. A residential dwelling in a building with more than one and less than the prescribed number of residential dwellings , all of which are under the same ownership. 3.

In the case of a condominium corporation that is not a common elements condominium corporation, i. a condominium unit that is a residential dwelling, including the common elements in respect of which the unit has an appurtenant common interest as described in the condominium declaration of the corporation, and ii. the property owned by the corporation. 4.

In the case of a common elements condominium corporation, i. a parcel of land mentioned in subsection 139 (1) of the Condominium Act, 1998 to which a common interest is attached and that is described in the condominium declaration of the corporation, including the common elements in respect of that common interest, unless the parcel of land is not a residential dwelling, and ii. the property owned by the corporation.

5 5. Any other prescribed residential dwelling; (“logement neuf”) “officer” includes, (

a) the chair and any vice- chair of the board of directors, the president and any vice -president, the secretary and assistant secretary, the treasurer and assistant treasurer and the general manager and assistant general manager of a corporation or the regulatory authority, (

b) a partner or general manager and assistant general manager of a partnership, (

c) any other individual designated as an officer by by-law or resolution of an organization, (

d) any other individual who performs functions normally performed by an individual occupying an office described in clause (a), (

b) or (c), and (

e) any other prescribed individual; (“dirigeant”) “owner” means, subject to the prescribed requirements or restrictions, if any, a person who, (

a) first acquires an interest or right in a new home from a vendor, (

b) for the purposes of a new home built under a contract with a person other than a vendor, is the owner of the land who has entered into the contract with the builder, or (

c) is a prescribed successor to the person described in clause (

a) or (b); (“propriétaire”) “owner-builder” means, subject to the prescribed requirements or restrictions, if any, an individual who constructs or manages the construction of a residential dwelling for th e individual’s personal use and occupation and who meets the prescribed requirements, if any; (“constructeur-propriétaire”) “person” means a natural person, corporation, partnership, sole proprietorship, association or other prescribed person or entity; (“personne”) “prescribed” means prescribed by the regulations; (“prescrit”) “regulations” means regulations made under this Act; (“règlements”) “regulatory authority” means the corporation that the Lieutenant Governor in Council has designated as such under subsection 2 (1); (“organisme de réglementation”) “Tribunal” means the Licence Appeal Tribunal established under the Licence Appeal Tribunal Act, 1999 or whatever other tribunal is prescribed; (“Tribunal”) “vendor” means, subject to the prescribed requirements or restrictions, if any, the person who sells or transfers , as prescribed, the prescribed property interest or right of the person in a new home to an owner , whether or not the person is a builder who builds the home under a contract with the owner; (“vendeur”) “warranty authority” has the same meaning as in the Protection for Owners and Purchasers of New Homes Act, 2017. (“organisme de garantie”) Interested person

(2) For the purposes of this Act, a person shall be deemed to be an interested person in respect of another person if the person is associated with the other person or if, in the opinion of the registrar, (

a) the person has or may have a beneficial interest in the other person’s activities; (

b) the person exercises or may exercise control either directly or indirectly over the other person; or (

c) the person has provided or may have provided financing either directly or indirectly for the other person’s activities. Associated persons

(3) For the purposes of this Act, one person is associated with another person in any of the following circumstances: 1. One person is a corporation of which the other person is an officer or director. 2. One person is a partnership of which the other person is a partner. 3. Both persons are partners of the same partnership. 4. One person is a corporation that is controlled directly or indirectly by the other person. 5. Both persons are corporations and one corporation is controlled directly or indirectly by the same person who controls directly or indirectly the other corporation. 6. Both persons are members of the same voting trust relating to shares of a corporation.

6 7. Both persons are associated within the meaning of paragraphs 1 to 6 with the same person.

PART II ADMINISTRATION DELEGATION Designation of regulatory authority 2

(1) The Lieutenant Governor in Council may, by regulation, designate a not -for-profit corporat ion without share capital incorporated under the laws of Ontario as the regulatory authority for the purposes of this Act. Delegated provisions

(2) The Lieutenant Governor in Council may, by regulation, designate provisions of this Act and the regulations, except for this Part and sections 80, 81 and 82, as the delegated provisions. Delegation of administration

(3) If the Lieutenant Governor in Council designates a corporation as the regulatory authority , the administration of the delegated provisions is delegated to the authority and the authority shall carry out the administration of the delegated provisions. Administrative agreement 3

(1) The Lieutenant Governor in Council shall not designate a corporation under subsection 2 (1) until the Minister and the corporation have entered into an agreement to be known as the administrative agreement. Contents

(2) The administrative agreement shall include, at a minimum, terms related to the following matters: 1. The governance of the regulatory authority. 2. All matters that the Minister considers necessary for the regulator y authority to carry out the administration of the delegated provisions. 3. The maintenance by the regulatory authority of adequate insurance against liability arising out of the carrying out of its powers and duties under this Act or the regulations. 4. The financial terms of the delegation of the administration of the delegated provisions, including payments to the Crown, licence fees, royalties and reimbursements for transfer of assets. Compliance with operating principle

(3) The administrative agreement shall require the regulator y authority to comply with the principle of promoting the protection of the public interest. Information sharing 4

(1) The regulatory authority shall share the prescribed information with the Minist er, the warranty authority and prescribed persons in accordance with the regulations and in the manner and within the time prescribed. Personal information

(2) For greater certainty, the prescribed information may include personal information as defined in subsection 2 (1) of the Freedom of Information and Protection of Privacy Act. Agreements

(3) For the purpose of complying with subsection (1), t he regulatory authority shall, in accordance with the regulations, enter into agreements with the Minist er, the warranty authority and prescribed persons in the manner and within the time prescribed. Content of agreements

(4) The information sharing agreements mentioned in subsection (3) shall include the prescribed information, which may include information about, (

a) licence and licence renewal applications; (

b) licence conditions; (

c) licence suspensions; (

d) licence revocations; (

e) complaints made under

section 56;

7 (

f) breaches of the code of ethics established under clause 81 (1) (f); (

g) orders made under

section 64; (

h) freeze orders made under

section 65 or 66; (

i) restraining orders made under

section 67; (

j) administrative penalties; (

k) offences; and (

l) other enforcement actions taken by the regulatory authority. Sharing of enforcement information

(5) An information sharing agreement may also require the sharing of enforcement information regarding actions that the registrar is taking or is proposing to take in relation to matters set out in subsection (4). Compliance by regulatory authority 5 In carrying out its powers and duties under this Act or the regulations, the regulator y authority shall comply with this Act, the regulations, the administrative agreement, the information sharing agreements and other applicable law. Review 6

(1) The Minister may, (

a) require that policy, legislative or regulatory reviews related to the powers and duties of the regulator y authority under this Act, the regulations, the administrative agreement or the information sharing agreements be carried out, (

i) by or on behalf of the authority, or (ii) by a person or entity specified by the Minister; or (

b) require that reviews of the regulator y authority, of its o perations, or of both, including, without limitation, performance, governance, accountability and financial reviews, be carried out, (

i) by or on behalf of the authority, or (ii) by a person or entity specified by the Minister. Access to records

(2) If a review is carried out by a person or entity specified by the Minister, the regulator y authority shall give the person or entity specified by the Minister and the employees of the person or entity access to all records and other information requir ed to conduct the review. Conflict 7 In the event of conflict, this Act and the regulations prevail over, (

a) the administrative agreement and the information sharing agreements; (

b) the Corporations Act, the Corporations Information Act or a regulation made under either of those Acts; and (

c) the constating documents, by-laws and resolutions of the regulatory authority. Revocation of designation 8

(1) The Lieutenant Governor in Council may, by regulation, revoke the designation of the regulatory authority if the Lieutenant Governor in Council considers it advisable to do so in the public interest. Revocation for non-compliance

(2) The Lieutenant Governor in Council may, by regulation, revoke the designation of the regulatory authority if, (

a) the authority has failed to comply with this Act, the regulations, the administrative agreement, any of the information sharing agreements or other applicable law; (

b) the Minister has allowed the authority the opportunity of remedying its defaul t within a specified time period that the Minister considers reasonable in the circumstances; and (

c) the authority has not remedied its default to the Minister’s satisfaction within the specified time period mentioned in clause (

b) and the Minister has so advised the Lieutenant Governor in Council. Same, no restriction on subs. (1)

(3) Nothing in subsection (2) restricts the ability of the Lieutenant Governor in Council to act under subsection (1).

8 Revocation on request

(4) The Lieutenant Governor in Co uncil may, by regulation, revoke the designation of the regulatory authority on the terms that the Lieutenant Governor in Council considers advisable in the public interest if the authority requests the revocation. Non-application of other Act

(5) The Statutory Powers Procedure Act does not apply to the exercise by the Lieutenant Governor in Council of a right under this

section to revoke the designation of the regulatory authority. Transition

(6) If the Lieutenant Governor in Council revokes the designat ion of the regulatory authority under this section, the Lieutenant Governor in Council may, by regulation, provide for any transitional matter necessary for the effective implementation of the revocation, including, (

a) the transfer, without compensation, of any property, including assets, liabilities, rights, obligations, records, databases, bank accounts and money, that the authority holds in respect of carrying out its activities; and (

b) the assignment, without compensation, of any contracts that the authority has entered into before the revocation. No Crown liability

(7) No cause of action arises against the Crown, a minister of the Crown, a Crown employee or a Crown agent as a direct or indirect result of the revocation of the designation of the regulatory authority or any regulation made under subsection (6). No proceeding

(8) No proceeding, including but not limited to a ny proceeding in contract, restitution, tort or trust, shall be instituted against the Crown, a ministe r of the Crown, a Crown employee or a Crown agent by a person who has suffered any damages, injury or other loss based on or related to any cause of action described in subsection (7).

Condition precedent for exercise of certain powers 9 The Minister may e xercise a power under subsection 2 4 (1) or any other prescribed provision only if the Minister is of the opinion that it is advisable to exercise the power in the public interest because at least one of the following conditions is satisfied: 1. The exercise of the power is necessary to prevent serious harm to the interests of the public, purchasers o f new homes or owners. 2. An event of force majeure has occurred. 3. The regulatory authority is facing a risk of insolvency. 4.

The number of members of the board of the regulatory authority is insufficient for a quorum. REGULATORY AUTHORITY Competency criteria for board members 10

(1) The Minister may, by regulation, establish competency criteria for members of the board of the regulator y authority. Restriction

(2) A person is qualified to be appointed or elected to the board only if the person meets the competency criteria , if any, established under subsection (1). Conflict

(3) In the event of a conflict, a regulation made under subsection (1) prevails o ver a constating document , by-law or resolution of the regulatory authority. Composition of the board 11

(1) The Minister may, by regulation, provide that no more than a fixed percentage of members of the board of the authority shall be drawn from among the persons or classes of persons that are prescribed. Conflict

(2) In the event of a conflict, a regulation made under subsection (1) prevails over a constating document , by-law or resolution of the regulatory authority. Minister’s appointments to board 12

(1) The Minister may appoint at pleasure one or more members to the board of the regulator y authority for a term specified in the appointment.

9 Majority

(2) The number of members appointed by the Minister shall not form a majority of the board. Representation

(3) The members appointed by the Minister may include, (

a) representatives of the public, consumer groups, businesses or government organizations; and (

b) representatives of other interests as the Minister determines. Appointment of chair 13 The Minister may appoint a chair from among the members of the board of the regulator y authority. Public access to corporate information 14

(1) The regulatory authority shall make available to the public, on its website and by any other means that the author ity determines, the following information within the prescribed time: 1. Prescribed information relating to the compensation of board members, officers and employees and relating to any other payments that the authority makes or is required to make to them. 2. Corporate by-laws of the authority. 3. Any other information that is prescribed. Compensation information

(2) A regulation made under paragraph 1 of subsection (1) may require that the regulator y authority make available to the public under that s ubsection information relating to the compensation of a board member or officer who is in office on the day this

section comes into force or an individual who is an employee on that day, where the information is for a period that begins before that day. Effect of compliance

(3) If the regulator y authority makes available to the public information relating to compensation in accordance with subsection (1), or in the reasonable belief that action is required by that subsection, no court or person shall find that the authority, (

a) has contravened any Act enacted or regulation made before or after this

section comes into force; or (

b) is in breach of or has contravened any agreement that purports to restrict or prohibit that action , regardless of whether the agreement is made before or after this

section comes into force. Processes and procedures

(4) The regulator y authority shall follow the prescribed processes and procedures with respect to providing access to the public to records of the authority and with respect to managing personal information contained in those records. Employees 15

(1) Subject to the administrative agreement, the regulator y authority may employ or retain the services of any qualified person to carry out any of its powers and duties under this Act or the regulations. Not Crown employees

(2) The following persons are not employees of the Crown and shall not hold themselves out as such: 1. Persons who are employed or whose services are retained under subsection (1). 2. Members, officers and agents of the regulatory authority. 3. Members of the board of the regulatory authority, including those appointed by the Minister. Not Crown agency 16

(1) Despite the Crown Agency Act , the regulator y authority is not an agent of the Crown for any purpose and shall not hold itself out as such. Same

(2) The following persons are not agents of the Crown and shall not hold themselves out as such: 1. Persons who are employed or whose services are retained by the regulator y authority under subsection 15 (1). 2. Members, officers and agents of the regulatory authority. 3. Members of the board of the regulatory authority, including those appointed by the Minister.

10 No personal liability, Crown employee 17

(1) No action or other proceeding shall be instituted against an employee of the Crown for

an act done in good faith in the execution or intended execution of a duty under this Act or the regulations or for an alleged neglect or default in the execution in good faith of that duty. Tort by Crown employee

(2) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act , subsection (1) of this

section does not relieve the Crown of liability in respect of a tort committed by an employee of the Crown to which it w ould otherwise be subject. No Crown liability 18

(1) No cause of action arises against the Crown, a minister of the Crown, a Crown employee or a Crown agent as a result of any act or omission of a person who is not a minister of the Crown, a Crown employe e or a Crown agent, if the act or omission is related, directly or indirectly, to the activities or affairs of the regulator y authority or to the administration of this Act. No proceeding

(2) No proceeding, including but not limited to a ny proceeding in contract, restitution, tort or trust, shall be instituted against the Crown, a minister of the Crown, a Crown employee or a Crown agent by a person who has suffered any damages, injury or other loss based on or related to any cause of action described in subsection (1).

Indemnification of the Crown 19 The regulator y authority shall indemnify the Crown, in accordance with the administrative agreement, in respect of damages and costs incurred by the Crown for any act or omission of the authority or its members , officers, directors, employees or agents in the execution or intended execution of their powers and duties under this Act, the regulations, the administrative agreement or the information sharing agreements. No personal liability, board members and others 20

(1) No action or other proceeding shall be instituted against a person mentioned in subsection (2) for

an act done in good faith in the execution or intended execution of any of the person’s powers or duties under this Act or the regulations or for an alleged neglect or default in the execution in good faith of that power or duty. Same (2) Subsection (1) applies to, (

a) members of the board of the regulatory authority; (

b) persons who perform functions under this Act or the regulations as employees , agents or officers of the regulator y authority or as persons whose services it retains; (

c) members of committees of the regulatory authority who perform functions under this Act or the regulations; and (

d) individuals who perform functions under this Act or the regulations. Liability of regulatory authority (3) Subsection (1) does not relieve the regulatory authority of liability to which it would otherwise be subject. Not public money 21

(1) The money that the regulatory authority collects in carrying out its powers and duties under this Act or the regulations is not public money within the meaning of the Financial Administration Act. Use of money

(2) Subject to

section 2 6 and the administrative agreement , t he regulator y authority may use the money described in subsection (1) to carry out activities in accordance with its objects. Audit 22

(1) The Auditor General appointed under the Auditor General Act may conduct an audit of the regulator y authority, other than an audit required under the Corporations Act. Access to records and information

(2) If the Auditor General conducts an audit under subsection (1), the regulator y authority shall give the Auditor General and employees of the Auditor General access to all records and other information required to conduct the audit. Reports 23

(1) The board of the regulator y authority shall report to the Minister on its activities and financial affairs as they relate to this Act, the administrative agreement and the information sharing agreements.

11 Form and contents

(2) The report shall be in a form acceptable to the Minister and shall provide the information that the Minister requires. Time for reports

(3) The board of the regulator y authority shall prepare the report for each year and at the other times that the Minister specifies. Disclosure by board

(4) The board of the regulator y authority shall publish the report on the authority’s website and by any other method within the period and in the manner that the Minister requires. Administrator 24

(1) Subject to

section 9, the Minister may, by order, appoint an individual as an administrator of the regulator y authority for the purposes of assuming control of it and responsibility for its activities. Notice of appointment

(2) The M inister shall give the board of the regulator y authority the notice that the Minister considers reasonable in the circumstances before appointing the administrator. Immediate appointment (3) Subsection (2) does not apply if there are not enough members on the board to form a quorum. Term of appointment

(4) The appointment of the administrator is valid until the Minister makes an order terminating it. Powers and duties of administrator

(5) Unless the order appointing the administrator provides otherwise, the administrator has the exclusive right to exercise all the powers and perform all the duties of the directors, officers and members of the regulator y authority. Same, limitations

(6) In the order appointing the administrator, the Minister may specify t he administrator’s powers and duties and the conditions governing them. Right of access

(7) The administrator has the same rights as the board in respect of the documents, records and information of the regulator y authority. Report to Minister

(8) The administrator shall report to the Minister as the Minister requires. Minister’s directions

(9) The Minister may issue directions to the administrator about any matter within the administrator’s jurisdiction, and the administrator shall carry them out. No personal liability

(10) No action or other proceeding shall be instituted against the administrator for

an act done in good faith in the execution or intended execution of a duty or power under this Act, the regulations, the delegated provisions, a Minist er’s order or the appointment under subsection (1), or for an alleged neglect or default in the execution in good faith of that duty or power. Crown liability

(11) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act , subsection (10) of this

section does not relieve the Crown of liability to which it would otherwise be subject. Liability of regulatory authority (12) Subsection (10) does not relieve the regulatory authority of liability to which it would otherwise be subject. Status of board during administrator’s tenure 25

(1) On the appointment of an administrator under

section 2 4, the members of the board of the regulator y authority cease to hold office, unless the order provides otherwise. Same

(2) During the term of the administrator’s appointment, the powers of any member of the board who continues to hold office are suspended, unless the order provides otherwise.

12 No personal liability

(3) No action or other proceeding shall be instituted against a member or former member of th e board for anything done by the administrator or the regulator y authority after the member’s removal under subsection (1) or while the member’s powers are suspended under subsection (2). Crown liability

(4) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act , subsection (3) of this

section does not relieve the Crown of liability to which it would otherwise be subject. Liability of regulatory authority (5) Subsection (3) does not relieve the regulatory authority of liability to which it would otherwise be subject. POWERS AND DUTIES OF REGULATORY AUTHORITY Additional powers 26

(1) The regulatory authority may carry out activities in addition to those provided for under this Act in accordance with its objects, subject to subsection (2). Commercial activities

(2) The regulatory authority shall not engage in commercial activity through a person or entity that is related to the authority. Change to objects 27 The regulator y authority shall not make any changes to its objects unless the Minister’s written approval is obtained in advance. Right to use French 28

(1) A person has the right to communicate in French with, and to receive available services in French from, the regulator y authority. Definition

(2) In subsection (1), “service” means any service or procedure that is provided to the public by the regulator y authority in carrying out i ts powers and duties under this Act or the regulations and includes, (

a) responding to inquiries from members of the public, and (

b) any other communications for the purpose of providing the service or procedure. Board’s duty

(3) The board of directors of the regulator y authority shall take all reasonable measures and make all reasonable plans to ensure that persons may exercise the right to use French given by this section. Limitation

(4) The right to use French given by this

section is subject to the limits that are reasonable in the circumstances. Forms and fees 29

(1) The regulatory authority may, (

a) establish forms related to the administration of the delegated provisions and provide for their content; (

b) in accordance with processes and criter ia established by the authority and approved by the Minister, set and collect fees, costs or other charges related to the administration of the delegated provisions; and (

c) make rules governing the payment of the fees, costs and charges described in clau se (b). Setting fees

(2) In setting the fees, costs and charges described in clause (1) (b), the regulator y authority may specify their amounts or the method for determining the amounts. Publication of fee

schedule

(3) The regulatory authority, (

a) shall publish the fees, costs and charges, processes, criteria and rules on its website or by any other electronic means required under the administrative agreement; and (

b) may publish that information in any other format that the authority considers advisable.

13 Advisory councils, advisory process 30 The Minister may require the regulatory authority to, (

a) establish one or more advisory councils; (

b) include, as members of an advisory council, representatives of the public, consumer groups, businesses or government organizations and other persons as the Minister determines; or (

c) undertake an advisory process in which it seeks advice from one or both of the public and persons with experience or knowledge relating to this Act. Duty to inform Minister 31 The regulatory authority shall advise the Minister with respect to, (

a) any material fact that could affect the authority’s ability to perform its duties under this Act or the regulations; or (

b) any urgent or critical matter that is likely to require action by the Minister to ensure that the administration of the delegated provisions is carried out properly. Advice to the Minister 32

(1) The regulator y authority shall advise or report to the Minister on any matter that the Minister refers to it and th at relates to this Act or the administration of the delegated provisions. Suggestions for legislative amendments

(2) The regulatory authority may suggest to the Minister amendments to Ontario legislation that it considers would, (

a) further the purpose of this Act; or (

b) assist the authority in carrying out its powers and duties under this Act or the regulations. Research and public education 33

(1) The regulatory authority shall participate, as prescribed, in, (

a) doing research into cost-effective building techniques, processes and materials; and (

b) identifying, in co-operation with other organizations, best practices for new home construction. Consumer education

(2) The regulatory authority shall engage in efforts to support consumer education and awareness about new home construction, ownership and maintenance. Information for warranty authority 34

(1) The registrar may require vendors, builders and other prescribed persons to disclose to the registrar, in accordance with regulations, the information that is related to the administration of this Act, that is prescribed or that is designed to assist the warranty authority in carrying out its duties under

section 36 of the Protection for Owners and Purchasers of New Homes Act, 2017. Forwarding information

(2) In accordance with the information sharing agreements and the regulations, the regulatory aut hority shall forward to the warranty authority the information that it collects under subsection (1). MISCELLANEOUS Registrar 35

(1) The following person or body shall appoint a registrar for the purposes of this Act and may appoint one or more deputy registrars: 1. The board of the regulatory authority. 2. The Minister, if there is no regulatory authority. Deputy registrars

(2) A deputy registrar may exercise the powers and perform the duties of the registrar that the registrar specifies and shall, if the registrar so directs, act as the registrar in the registrar’s absence. If more than one deputy registrar

(3) If more than one deputy registrar is appointed, only one deputy registrar may act as the registrar under subsection ( 2) at any one time in respect of the powers and duties that the registrar specifies.

14 Director 36

(1) Subject to subsection ( 2), the following person or body shall appoint a Director for the purposes of this Act and may appoint one or more Deputy Directors: 1. The board of the regulatory authority. 2. The Minister, if there is no regulatory authority. Restriction

(2) A person appointed as the registrar or a deputy registrar under

section 35 shall not be appointed as the Director or a Deputy Director under subsection (1) of this section. Deputy Directors

(3) A Deputy Director shall perform the duties that the Director assigns and shall, if directed by the Director, act as the Director in the Director’s absence. If more than one Deputy Director

(4) If more than one Deputy Director is appointed, only one D eputy Director may act as the D irector under subsection ( 3) at any one time in respect of the powers and duties that the Director specifies.

PART III LICENSING Licences required 37

(1) No person shall act or hold ones elf out as a vendor , offer to sell or transfer a new home, including as prescribed, or sell or transfer a new home, including as prescribed, un less the person is licensed as a vendor and meets the other prescribed requirements, if any. Same, builder

(2) No person shall act or hold oneself out as a builder, offer to construct a new home or construct a new home unless the person is licensed as a builder and meets the other prescribed requirements, if any. Owner-builder

(3) An owner-builder is not a builder unless prescribed otherwise. Application for licence 38

(1) An applicant is entitled to a licence or a renewal of a licence by the registrar if, in the registrar’s opinion, (

a) the applicant is not a corporation and, (

i) having regard to the past and present financial position of the applicant, a ll interested persons in respect of the applicant and all other prescribed persons , the applicant can reasonably be expected to be financially responsible in the conduct of business, (ii) the past and present conduct of the applicant , of all interested persons in respect of the applicant and of all other prescribed persons affords reasonable grounds to believe that the applicant will carry on business in accordance with the law and with integrity and honesty, and (iii) neither the applicant, nor any employee or agent of the applicant , nor any other prescribed person has made any false statement with respect to the conduct of the applicant’s business; (

b) the applicant is a corporation and, (

i) having regard to its past and present financial position and the past and present financial position of all interested persons in respect of the corporation, the applicant can reasonably be expected to be financially responsible in the conduct of its business, (ii) having regard to the past and present financial position of its officers and directors and of all interested persons in respect of its officers and directors, the applicant can reasonably be expected to be financially responsible in the conduct of its business, (iii) the past and present conduct of its officers and directors, of all interested person s in respect of its officers and directors and of all interested persons in respect of the corporation affords reasonable grounds for belief that its business will be carried on in accordance with the law and with integrity and honesty, and (iv) no officer or director of the corporation has made any false statement with respect to the conduct of the applicant’s business; (

c) neither the applicant, nor any interested person in respect of the applicant, has carried on or is carrying on activities,

15 (

i) that are in contravention of this Act or the regulations, or (ii) that will be in contravention of this Act, the regulations or prescribed legislation if the applicant is issued a licence; (

d) the applicant is not in breach of a condition of the licence, if the applicant is applying for a renewal of a licen ce; (

e) the applicant meets the prescribed requirements, if any, including requirements for competency; (

f) the applicant or, if the applicant is a corporation, its directors, officers and other prescribed persons, have complied with all tax laws and regulations that are prescribed; and (

g) granting the licence or the renewal, as the case may be, would not be contrary to the public interest. Notice of prescribed material change

(2) An applicant for a licence or a renewal of a licence who experiences a material change, as prescribed, at any time shall, (

a) promptly inform the registrar of the change; (

b) promptly answer any inquiries that the registrar has with respect to the change; and (

c) produce any documents or information that the registrar requ ests with respect to the change within the time that the registrar specifies. Information from warranty authority

(3) The registrar may request, from the warranty authority, (

a) information about the financial position of an applicant for a licence or a renewal of a licence or a licensee; or (

b) information about any of the other criteria set out in subsection (1) with respect to the person described in clause (a). Same

(4) The warranty authority shall comply with the request. Notice to warranty authority

(5) Upon granting an application for a licence or a renewal of a licence, the registrar shall notify the warranty authority that the registrar has granted the application. Conditions of licence 39 A licence is subject to the conditions, (

a) to which the applicant or licensee consents; (

b) that the registrar applies under subsection 40 (3), (4) or (6); (

c) that the Tribunal orders; or (

d) that are prescribed. Registrar’s powers with hearing 40

(1) Subject to

section 43, the registrar may refuse to license an applicant or renew the licence of a licensee if, (

a) in the registrar’s opinion, the applicant or licensee is not entitled to a licence under subsection 38 (1); or (

b) the applicant or licensee fails or refuses to comply with subsection 38 (2). Suspension or revocation of licence

(2) Subject to

section 4 3, the registrar may suspend or revoke a licence at any time for any reason that would cause the licensee to be disentitled to the licence. Conditions

(3) Subject to

section 43, the registrar may, (

a) approve the licence or the renewal of a licence on the conditions that the registrar considers appropriate; and (

b) at any time, apply to a licence the conditions that the registrar considers appropriate. Same

(4) Subject to

section 43, the registrar shall apply to a licence the conditions that the warranty authority requires the registrar to attach to the licence under subsection 43 (8) of the Protection for Owners and Purchasers of New Homes Act, 2017.

16 Request for information

(5) The registrar may request an applicant for a licence or a licen see to provide to the registrar, in the form and within the time period specified by the registrar, (

a) information specified by the registrar that allows the registrar to determine whether the applicant for a licence or the licensee has become disentitled to the licence; and (

b) verification, by affidavit or otherwise, of any information described in clause (

a) that the applicant for a licence or the licensee is providing or has provided to the registrar. Consequence for non-compliance

(6) If an applicant for a licence or a licensee fails or refuses to provide the information requested under subsection ( 5), the registrar may, subject to

section 43, refuse to grant the licence or the renewal of licence, suspend or revoke the licence or apply conditions to the licence. Voluntary cancellation 41 The registrar may cancel a licence upon the request in writing of the licensee and

section 4 3 does not apply to the cancellation. Expiry of licence 42

(1) A licence expires at the time that is specified in the licence or on the occurrence of an event that is described in the licence. No application for renewal

(2) A licensee may allow a licence to expire by not applying to renew it before its expiry. Notice of conditions or proposal 43

(1) The registrar shall notify an applicant or licensee in writing if the registrar proposes to, (

a) refuse, under subsection 40 (1), to grant or renew a licence; (

b) suspend or revoke a licence; (

c) apply conditions to a licence under subsection 40 (3) to which the licensee has not consented; or (

d) apply conditions to a licence under subsection 40 (4) or (6). Content of notice

(2) The notice shall set out the reasons for the registrar’s proposed action and shall state that the applicant or licensee is entitled to a hearing by the Tribunal if the applicant or licensee mails or delivers, within 15 days after service of the not ice, a written request for a hearing to the registrar and to the Tribunal. Service of notice

(3) The notice shall be served on the applicant or licensee in accordance with

section 78. Service of hearing request

(4) A request for a hearing under subsection (2) is sufficiently served if it is sent to the registrar and to the Tribunal by personal delivery, by registered mail or in accordance with the rules of the Tribunal. Same

(5) If service is made by registered mail, it shall be deemed to be made on the third day after the day of mailing. Other methods

(6) Despite subsection (4), the Tribunal may order any other method of service. If no request for hearing

(7) If the applicant or licensee does not request a hearing in accordance with subsection (2), the registrar may carry out the proposed action. Hearing

(8) If the applicant or licensee requests a hearing in accordance with subsection (2), the Tribunal shall hold the hearing and may, by order, (

a) direct the registrar to carry out the registrar’s proposed action; or (

b) substitute its opinion for that of the registrar.

17 Powers of Tribunal

(9) In addition to its powers under subsection (8), the Tribunal may attach conditions to its order or to a licence. Parties

(10) The registrar, the applicant or licensee and the other persons that the Tribunal specifies are parties to the proceedings under this section. Immediate effect

(11) Even if a licensee appeals an order of the Tribunal, the order takes effect immediately, unless the order provides otherwise, but the Divisional Court may grant a stay until the disposition of the appeal. Continuation pending renewal 44 If, within the time prescribed or, if no time is prescribed, before the expiry of the licensee’s licence, the licensee has applied for a renewal of a licence and paid the required fee, the licence shall be deemed to continue until, (

a) the renewal is granted; (

b) the registrar gives the licensee written notice of the registrar’s refusal under

section 40 to grant the renewal; (

c) the time for requesting a hearing under

section 43 has expired, if the licensee receives a notice of a pr oposal under that

section and does not request such a hearing; or (

d) the Tribunal makes its order, if the licensee receives a notice of a proposal under

section 43 and does request such a hearing. Immediate suspension 45

(1) If the registrar proposes to suspend or revoke a licence under subsection 40 (2) and if the registrar considers it in the public interest to do so, the registrar may, by order, temporarily suspend the licence. Immediate effect

(2) An order under subsection (1) takes effect immediately. Expiry of order

(3) If the licensee requests a hearing under

section 43, the order expires 15 days after the Tribunal receives the written request for a hearing, but the Tribunal may extend the time of expiration until the hearing is concluded, if a hearing is commenced within the 15-day period. Extension of expiry of order

(4) Despite subsection (3), if the Tribunal is satisfied that the conduct of the licensee has delayed the commencement of the hearing, it may extend the time of the expiration for the order, (

a) until the hearing commences; and (

b) once the hearing commences, until the hearing is concluded. Further application 46 Once a decision of the registrar to refuse a person a licence or a renewal of a licence or to revoke a licence of a per son has become final, the person may reapply for a licence only if, (

a) the time prescribed to reapply has passed since the refusal or revocation; and (

b) the person satisfies the registrar that new or other evidence is available or that material circums tances have changed. Licence not transferable 47

(1) A licence is not transferable. Trustee in bankruptcy

(2) The appointment of a trustee in bankruptcy, receiver, court -appointed receiver, monitor within the meaning of the Companies’ Creditors Arrangement Act (Canada) or other insolvency agent for a licensee does not result in a transfer of any licence of the licensee, but this Act applies with necessary modifications to the person so appointed who deals with the licence, as if that person were the licensee. Notice to registrar

(3) Within 15 days after the date of the bankruptcy , as defined in

section 2 of the Bankruptcy and Insolvency Act (Canada), or the prescribed insolvency proceeding with respect to a licensee, the trustee in bankruptcy , receiver, court -appointed receiver, monitor within the meaning of the Companies’ Creditors Arrangement Act (Canada) or other insolvency agent shall

18 give the r egistrar a written notice of the bankruptcy or the prescribed insolvency proceeding, as applicable, together with a written plan specifying how the person so appointed intends to manage the operations of the licensee.

Sale by person other than vendor 48 For purposes of this Act, a person, who at any time is licensed as a vendor and who acts as the vendor of a new home to which a warranty described in subsection 47 (1) of the Protection for Owners and Purchasers of New Homes Act, 2017 applies, continues to be the vendor of the home even if another person sells or transfers, as prescribed, the home to an ow ner or completes a transaction to sell or transfer, as prescribed, the home to an owner.

PART IV REGULATION OF LICENSEES Notice of change of address for service 49

(1) Every licensee shall notify the registrar in writing within five days of any change in address for service. Timing

(2) The registrar shall be deemed to have received a notice under this

section on the day on which the registrar actually received it or, if the notice is sent by mail, on the day of mailing. Notice of change of control 50

(1) When a person ceases to have a controlling interest in a licensee, or acquires a controlling interest in a licensee, the licensee shall promptly notify the registrar. Review

(2) When the registrar learns of a change of control occurring with respect to a licensee, the registrar may review the licensee’s licence and request the licensee to provide to the registrar, in the form and within the time period specified by the registrar, (

a) information specified by the registrar that allows the registrar to determine whether the licensee has become disentitled to the licence; and (

b) verification, by affidavit or otherwise, of any information described in clause (

a) that the applicant is providing or has provided to the registrar. Notice of issue or transfer of shares 51

(1) Every applicant for a licence or renewal of a licence that is a corporation and every licensee that is a corporation shall notify the registrar in writing within 30 days after the issue or transfer of any equity shares o f the corporation, if the issue or transfer results in, (

a) any person, or any persons that are associated with each other, acquiring or accumulating beneficial ownership or control of 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation; or (

b) an increase in the percentage of issued and outstanding equity shares of the corporation beneficially owned or controlled by any person, or any persons who are associated with each other, where the person or the as sociated persons already beneficially owned or controlled 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation before the issue or transfer. Same

(2) Despite subsection (1), if a n applicant described in th at subsection that is a corporation or a licensee that is a corporation becomes aware of a transfer to which that subsection would otherwise apply after the transfer has taken place, it shall notify the registrar in writing within 30 days after knowledge of the transfer comes to the attention of its officers or directors. Calculating number of shares

(3) In calculating the total number of equity shares of the corporation beneficially owned or controlled for the purpose of this section, the total number sha ll be calculated as the total of all the shares beneficially owned or controlled, but each share that carries the right to more than one vote shall be calculated as the number of shares equal to the total number of votes it car ries. Notice of prescribed material change 52 Every licensee who experiences a material change, as prescribed, at any time shall, (

a) promptly inform the registrar of the change; (

b) promptly answer any inquiries that the registrar has with respect to the change; and (

c) produce any documents or information that the registrar requests with respect to the change within the time that the registrar specifies.

19 Disclosures by licensees 53

(1) A vendor that enter s into a n agreement in respect of the sale or other transfer as prescribed of a new home to a purchaser shall deliver to the purchaser the information, if any, that is prescribed and do so in the form and manner prescribed and within the time prescribed , including whether the vendor is req uired to deliver the information before, at the time of or after entering into the agreement. Same, builder

(2) A builder that enters into a contract for the construction of a new home with a n owner shall deliver to the owner the information, if any, that is prescribed and shall do so in the form and manner prescribed and within the time prescribed , including whether the builder is required to deliver the information before, at the time of or after entering into the contra ct. Agreements of vendors with purchasers

(3) An agreement that a vendor enters into with a purchaser shall include the terms or conditions that the regulations deem to be so included and shall not include any term or condition that the regulations prohibit from being so included. Construction contracts with purchasers

(4) A contract for the construction of a new home that a builder enters into with an owner shall include the terms or conditions that the regulations deem to be so included and shall not include any term or condition that t he regulations prohibit from being so included. Misrepresentations prohibited 54 No licensee shall make a false, misleading or deceptive representation in its advertising, documents or other prescribed materials.

Duties of licensees 55 Every licensee shall take all reasonable precautions to ensure that the licensee and the licensee’s employees and agents comply with this Act, the regulations and orders made by the Director or the Tribunal under this Act or by the discipline committee or appeals committee under

section 57.

PART V COMPLAINTS, DISCIPLINE, INSPECTIONS, INVESTIGATIONS AND ENFORCEMENT COMPLAINTS AND DISCIPLINE Complaints 56

(1) If the registrar receives a complaint about a licensee, the registrar may request information in relation to the complaint from any licensee. Request for information

(2) A request for information under subsection (1) shall indicate the nature of the complaint. Duty to comply with request

(3) A licensee who receives a written request for information shall provide the information as soon as is reasonably possible . Procedures

(4) In handling complaints, the registrar may do any of the following, as appropriate: 1. Attempt to mediate or resolve the complaint. 2. Give the licensee a written warning that if the licensee continues with the activity that led to the complaint, action may be taken against the licensee. 3. Require the licensee to take further educational courses. 4. Require the licensee, in accordance with the terms, if any, that the registrar specifies, to fund educational courses for persons that the licensee employs or to arrange and fund the courses. 5. Refer the matter, in whole or in part, to the discipline committee. 6. Take an action under

section 40, subject to

section 43. 7. Take further action as is appropriate in accordance with this Act. Discipline proceedings 57

(1) A discipline committee is established to hear and determine, in accordance with the procedures prescribed by the Minister, if a licensee has failed to comply with the code of ethics established under clause 81 (1) (f).

20 Appeals committee

(2) An appeals committee is established to consider, in accordance with the procedures prescribed by the Minister , appeals from the discipline committee. Appointment of members

(3) The board of the regulatory authority shall appoint the members of the discipline committee and the members of the appeals committee and, in making the appointm ents, shall ensure that the prescribed requirements for the composition of each committee are met. Result of a determination

(4) If the discipline committee makes a determination under subsection (1) that a licensee has failed to comply with the code of ethics, it may order any of the following, as appropriate: 1. Require the licensee to take further educational courses. 2. Require the licensee, in accordance with the terms, if any, that the committee specifies, to fund educational courses for persons that the licensee employs or to arrange and fund the courses. 3.

Impose the fine that the committee considers appropriate, to a maximum of $25,000, or such lesser amount as is prescribed, to be paid by the licensee to the regulatory authority. 4. Suspend or postpone the taking of further educational courses, the funding or the funding and arranging of educational courses or the imposition of the fine for the period and upon the terms that the committee designates. 5. Fix and impose costs that the licensee is required to pay to the regulatory authority. Appeal

(5) A party to the discipline proceeding may appeal the final order of the discipline committee to the appeals committee. Power of the appeals committee

(6) The appeals committee may, by order, overt urn, affirm or modify the order of the discipline committee and may make an order under subsection (4). Taking of educational course

(7) A licensee that is required under subsection ( 4) to take an educational course or to arrange for others to take an educational course under that subsection shall do so, (

a) within the time period specified in the order of the discipline committee, if the requirement is not the subject of an appeal; (

b) within the time period specified in the order of the appeals committee, if the requirement is the subject of an appeal; or (

c) at the first reasonable opportunity after the last order made in respect of the educational course, if no time period is specified in that order. Arranging and funding educational courses

(8) A licensee that is required under subsection (4) to fund educational courses shall do so, (

a) within the time period specified in the order of the discipline committee, if the requirement is not the subject of an appeal; (

b) within the time period specified in the order of the appeals committee, if the requirement is the subject of an appeal; or (

c) at the first reasonable opportunity after the last order made in respect of the educational course, if no time period is specified in that order. Payment of fine

(9) The licensee shall pay any fine imposed under subsection (4) on or before, (

a) the day specified in the order of the discipline committee, if the fine is not the subject of an appeal; (

b) the day specified in the order of the appeals committee, if the fine is the subject of an appeal; or (

c) the 60th day after the date of the last order made in respect of the fine, if no day is specified in that order. INSPECTIONS AND INVESTIGATIONS Inspectors 58

(1) The registrar is, by virtue of the registrar’s office, an inspector.

21 Appointment

(2) The registrar shall appoint persons to be inspectors for the purposes of conducting inspections under this Act. Certificate of appointment

(3) The registrar shall issue to every inspector a certificat e of appointment bearing the registrar’s signature or a facsimile of it. Proof of appointment

(4) Every inspector who is conducting an inspection under this Act shall, upon request, produce the certificate of appointment as an inspector. Inspections without warrant 59

(1) An inspector may, without a warrant or court order, conduct an inspection in accordance with this

section for the purpose of, (

a) ensuring compliance with this Act and the regulations; (

b) dealing with a complaint under

section 56; or (

c) ensuring a licensee remains entitled to a licence. Power to enter premises

(2) As part of an inspection, an inspector may, without a warrant or court order, enter and inspect, at any reasonable time, the business premises of a licensee. Expert help

(3) An inspector conducting an inspection under this

section may be accompanied by one or more persons with special, expert or professional knowledge, and other persons as necessary, as the inspector considers advisable. Powers on inspection

(4) While carrying out an inspection, an inspector, (

a) is entitled to free access to all money, valuables, documents and records of the person being inspected that are relevant to the inspection; (

b) may make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the inspection; (

c) may require a person to produce any document or record relevant to the inspection and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retriev al device or system to produce, in any form, the document or record; (

d) may use any data storage, processing or retrieval device or system used to engage in activities of a licensee in order to produce information that is relevant to the inspection and that is in any form; (

e) may, upon giving a receipt for them, remove for examination and copy anything relevant to the inspection, including any data storage disk or other retrieval device in order to produce information, but shall promptly return to the p erson being inspected the thing that was removed; and (

f) may, alone or in conjunction with the other persons described in subsection (3), make examinations or inquiries or take tests, as are necessary for the purposes of the inspection. No use of force

(5) An inspector shall not use force to enter and inspect premises under this section. No obstruction

(6) No person shall obstruct an inspector conducting an inspection or a person accompanying the inspector under subsection (3) or withhold from the inspe ctor or that other person or conceal, alter or destroy any money, documents or records that are relevant to the inspection. Compliance

(7) If an inspector under clause (4) (

c) requires a person to produce a document or record and to provide assistance, the person shall produce the document or record or provide the assistance, as the case may be. Admissibility of copies

(8) A copy of a document or record certified by an inspector to be a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

22 Appointment of investigators 60

(1) The Director shall appoint persons to be investigators for the purposes of conducting investigations under this Act. Certificate of appointment

(2) The Director shall issue to every investigator a certificate of appointment bearing the D irector’s signature or a facsimile of it. Proof of appointment

(3) Every investigator who is conducting an investigation under this Act shall, upon request, produce the ce rtificate of appointment as an investigator. Investigations with warrant 61

(1) Upon application made without notice by an investigator, a justice of the peace may issue a warrant, if satisfied on information under oath that there is reasonable ground for believing that, (

a) a person has contravened or is contravening this Act or the regulations or has committed an offence under the law of any jurisdiction that is relevant to the person’s fitness for a licence; and (

b) there is, (

i) in any building, dwelling, receptacle or place anything relating to the contravention of this Act or the regulations or to the person’s fitness for a licence, or (ii) information or evidence relating to the contravention of this Act or the regulations or the person’s fitness for a licence that may be obtained through the use of an investigative technique or procedure or the doing of anything described in the warrant. Powers under warrant

(2) Subject to any conditions contained in it, a warrant obtained under subsection (1) a uthorizes an investigator, (

a) to enter or access the building, dwelling, receptacle or place specified in the warrant and examine and seize anything described in the warrant; (

b) to make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the investigation; (

c) to require a person to produce the information or evidence described in the warrant and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval d evice or system to produce, in any form, the information or evidence described in the warrant; (

d) to use any data storage, processing or retrieval device or system used to engage in the activities of a licensee in order to produce information or evidence described in the warrant, in any form; and (

e) to use any investigative technique or procedure or do anything described in the warrant. Entry of dwelling

(3) Despite subsection (2), an investigator shall not exercise the power under a warrant to enter a place, or part of a place, used as a dwelling, unless, (

a) the justice of the peace is informed that the warrant is being sought to authorize entry into a dwelling; and (

b) the justice of the peace authorizes the entry into the dwelling. Conditions on warrant

(4) A warrant obtained under subsection (1) shall contain the conditions that the justice of the peace considers advisable to ensure that any search authorized by the warrant is reasonable in the circumstances. Expiry of warrant

(5) A warrant issued under this

section shall name a date of expiry, which shall be no later than 30 days after the warrant is issued, but a justice of the peace may extend the date of expiry for an additional period of no more than 30 days, upon application without notice by an investigator. Time of execution

(6) An entry or access under a warrant issued under this

section shall be made between 6 a.m. and 9 p.m. local time, unless the warrant specifies otherwise. Use of force

(7) An investigator may call upon police officers for assistance in executing the warrant and the investigator may use whatever force is reasonably necessary to execute the warrant.

23 No obstruction

(8) No person shall obstruct an investigator executing a warrant under this

section or withhold from the investigator or conceal, alter or destroy anything relevant to the investigation being conducted pursuant to the warrant. Expert help

(9) The warrant may authorize persons who have special, expert or professional knowledge and other persons as necessary to accompany and assist the investigator in respect of the execution of the warrant. Compliance

(10) If an investigator under clause (2) (

c) requires a person to produce information or evidence or to provide assistance, the person shall produce the information or evidence or provide the assistance, as the case may be. Return of seized items

(11) An investigator who seizes anything under this

section or

section 6 2 may make a copy of it and shall return it within a reasonable time. Admissibility of copies

(12) A copy of a document or record certified by an investigator as being a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value. Seizure of things not specified 62 An investigator who is lawfully present in a place pursuant to a warrant or otherwise in the execution of the investigator’s duties may, without a warrant, seize anything in plain view that the investigator believes on reasonable grounds will afford evidence relating to a contravention of this Act or the regulations. Searches in exigent circumstances 63

(1) An investigator may exercise any of the powers described in subsection 6 1 (2) without a warrant if the conditions for obtaining the warrant exist but by reason of exigent circumstances it would not be reasonably possible to obtain the warrant. Dwellings (2) Subsection (1) does not apply to a building or a part of a building that is being used as a dwelling. Use of force

(3) The investigator may, in executing any aut hority given by this section, call upon police officers for assistance and use whatever force is reasonably necessary. Applicability of s. 61 (4) Subsections 61 (8) to (12) apply, with necessary modifications, to a search under this section. ORDERS AND OFFENCES Order re false advertising 64

(1) If the registrar believes on reasonable grounds that any licensee is making a false, misleading or deceptive representation in an advertisement, circular, pamphlet or material published by any means with respect to an existing or proposed new home, the registrar may, (

a) order the licensee to cease making the representation; and (

b) order the licensee to retract the representation or publish a correction of equal prominence to the original publication. Order effective

(2) The order takes effect immediately upon being made. Content of order

(3) The order shall inform the licensee named in it that the licensee may request a hearing before the Tribunal by mailing or delivering a written notice of request for a hearing to the registrar and the Tribunal within 15 days after service of the or der. Service

(4) The registrar shall serve the order, together with written reasons for it, on the licensee named in it. Hearing

(5) If the licensee gives a notice of request for a hearing within the allowed time, the Tribunal shall hold a hearing. Stay of order

(6) The Tribunal may stay the order until it confirms or sets aside the order under subsection (8).

24 Parties

(7) The registrar, the licensee who requested the hearing and the persons whom the Tribunal specifies are parties to the hearing. Powers of Tribunal

(8) After holding the hearing, the Tribunal may, (

a) confirm the order with the amendments, if any, that the Tribunal considers proper to give effect to the purposes of the Act; or (

b) set aside the order. Same

(9) In confirming or setting aside the order, the Tribunal may substitute its opinion for that of the r egistrar. Appeal

(10) Even if the licensee named in an order of the Tribunal made under this

section appeals it under

section 11 of the Licence Appeal Tribunal Act, 1999, the order takes effect immediately but the Tribunal may grant a stay until the dispo sition of the appeal. Freeze order, licensees and former licensees 65

(1) If the conditions in subsection (2) are met, the Director may, in writing, (

a) order any person having on deposit or controlling any assets or trust funds of a licensee or former licensee to hold those assets or funds; (

b) order a licensee or former licensee to refrain from withdrawing any asset or trust fund from a person having them on deposit or controlling them; or (

c) order a licensee or former licensee to hold any asset or trust fund of a purchaser or other person in trust for the person entitled to it. Conditions

(2) The Director may make an order under subsection (1) if the Director believes that it is advisable for the protection of purchasers, owners or the guarantee fund under the Protection for Owners and Purchasers of New Homes Act, 2017 and, (

a) a search warrant has been issued under

section 61; or (

b) an order has been made under

section 64. Limitation

(3) In the case of a bank or authorized foreign bank as defined in

section 2 of the Bank Act (Canada), a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994 or a loan or trust corporation, the order under subsection (1) of this

section applies only to the offices and branches named in the order. Release of assets

(4) The Director may consent to the release of any particular asset or trust fund from the order or may wholly revoke the order. Exception (5) Subsection (1) does not apply if the person files with the Direc tor, in the manner and amount that the Director determines, (

a) a personal bond accompanied by collateral security; (

b) a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance; (

c) a bond of a guarantor accompanied by collateral security; or (

d) another prescribed form of security. Application to court

(6) An application may be made to the Superior Court of Justice for a determination in respect of the disposition of an asset or trust fund, (

a) by a person in receipt of an order under subsection (1), if that person is in doubt as to whether the order applies to the asset or trust fund; or (

b) by a person who claims an interest in the asset or trust fund subject to the order.

25 Notice

(7) If an order is made under this section, the D irector may register in the appropriate land registry office a notice that an order under subsection (1) has been issued and that the order may affect land belonging to the person specified in the notice. Effect of notice

(8) T he notice has the same effect as the registration of a certificate of pending litigation except that the Director may in writing revoke or modify the notice. Cancellation or discharge application

(9) A person in respect of whom an order has been made under subsection (1) or any person having an interest in land in respect of which a notice is registered under subsection ( 7) may apply to the Tribunal for cancellation in whole or in part of the order or for discharge in whole or in part of the registration. Disposition by Tribunal

(10) The Tribunal shall dispose of the application after a hearing and may cancel the order or discharge the registration in whole or in part, if the Tribunal finds, (

a) that the order or registration is not required in whole or in part for th e protection of owners or of other persons having an interest in the land; or (

b) that the interests of other persons are unduly prejudiced by the order or registration. Parties

(11) The applicant, the Director and the other persons that the Tribunal spe cifies are parties to the proceedings before the Tribunal. Court application

(12) If the Dir ector has made an order under subsection (1) or registered a notice under subsection ( 7), the Director may apply to the Superior Court of Justice for directions or an order relating to the disposition of assets, trust funds or land affected by the order or notice. Notice not required

(13) An application by the Director under this

section may be made without notice to any other person. Freeze orders, non-licensees 66

(1) The Director may make an order described in subsection (2) in respect of the money or assets of a person who is not licensed and who is alleged to have engaged in activities for which licensing is required at a time when the person was not licensed to do so if, (

a) the Director receives an affidavit in which it is alleged, and in which facts are set out supporting the allegation, that the person who is not licensed, (

i) is subject to criminal proceedings or proceedings in relation to a contravention under this Act or any other Act that are about to be or have been instituted against the person in connection with or arising out of activities for which licensing is required, or (ii) owns a building, dwelling, receptacle or place, or carries on activities in a building, dwelling, receptacle or place, in respect of which a search warrant has been issued under

section 61; and (

b) the Director, based on the affidavit mentioned in clause (a), finds reasonable grounds to believe that, (

i) in the course of activities for which licensing is required under this Act, the person who is the subject of the allegation mentioned in clause (

a) has received money or assets from purchasers or owners, an d (ii) the interests of those purchasers or owners require protection or the guarantee fund under the Protection for Owners and Purchasers of New Homes Act, 2017 requires protection. Order

(2) In the circumstances described in subsection (1), the Director may, in writing, (

a) order any person having on deposit or controlling any money or asset of the person who is the subject of the allegation mentioned in clause (1) (

a) to hold the money or asset; or (

b) order the person who is the subject of the allegation mentioned in clause (1) (a), (

i) to refrain from withdrawing any money or asset from a person having it on deposit or controlling it, or (ii) to hold any money or asset of a purchaser or other person in trust for the person who is entitled to it.

26 Application (3) Subsections 65 (3) to (13) apply, with necessary modifications, to an order made under this section. Restraining order 67

(1) If it appears to the Director that a person is not complying with this Act or the regulations or an order made u nder this Act, the Director may apply to the Superior Court of Justice for an order restraining the person from acting in breach of them, and, upon the application, the court may make the order or any other order that the court thinks fit. Same (2) Subsection (1) applies despite the imposition of any penalty in respect of the non -compliance and in addition to any other procedures that may be available to the D irector, whether or not the D irector has exercised his or her rights under the procedures. Appeal

(3) An appeal lies to the Divisional Court from an order made under subsection (1). Offences 68

(1) A person or entity, other than the regulatory authority, is guilty of an offence if the person or entity, (

a) furnishes false information to the regulatory authority i n any application under

section 38 , in any statement required under this Act or in any circumstance that is prescribed; (

b) fails to comply with any condition of a licence that the person or entity holds; (

c) fails to comply with any order or other requirement under this Act, other than an order made under

section 57 ; or (

d) contravenes or fails to comply with any

section of this Act or the regulations made under the Act, other than the code of ethics established under clause 81 (1) (f). Officer or director of corporation

(2) An officer or director of a corporation who fails to take reasonable care to prevent the corporation from committing an offence mentioned in subsection (1) is guilty of an offence, whether or not the corporat ion has been prosecuted or convicted. Other individuals

(3) Any of the following individuals who act on behalf of an entity and who fail to take reasonable care to prevent the entity from committing an offence mentioned in subsection (1) are guilty of an offence, whether or not the entity has been prosecuted or convicted: 1. A partner or general manager and assistant general manager of the entity, if the entity is a partnership. 2. Any other individual designated for the purpose of this subsection by a b y-law or resolution of the entity. 3. Any other individual who performs functions normally performed by an individual described in paragraph 2. Penalties

(4) A person or entity that is convicted of an offence under this Act is liable to, (

a) a fine of not more than $50,000 or imprisonment for a term of not more than two years less a day or both, in the case of an individual; or (

b) a fine of not more than $250,000, if the person or entity is not an individual. Limitation

(5) No proceeding under this se ction shall be commenced more than two years after the facts upon which the proceeding is based first came to the knowledge of the Director. Orders for compensation, restitution 69

(1) If a person or entity is convicted of an offence under

section 68, the court making the conviction may, in addition to any other penalty, order the person or entity convicted to pay compensation or make restitution. If insurance has paid

(2) If an order is made in favour of a person or entity under subsection (1) and that p erson or entity has already received compensation or restitution from an insurer, the person or entity ordered to pay the compensation or make restitution shall deliver the amount to the insurer.

27 Default in payment of fines 70

(1) If a fine payable as a r esult of a conviction for an offence under

section 68 is in default for at least 60 days, the Director may disclose to a consumer reporting agency the name of the defaulter, the amount of the fine and the date the fine went into default. If payment made

(2) Within 10 days after the Director has received notice that the fine has been paid in full, the Director shall inform the consumer reporting agency of the payment. Transition

(3) Despite the repeal of the Ontario New Home Warranties Plan Act , if a fine is payable as a result of a conviction under that Act, the D irector may treat the fine as if it is payable as a result of a conviction under this Act, and subsections (1) and (2) apply to the fine as if it were a fine payable for a conviction under this Act. Liens and charges 71

(1) If a fine payable as a result of a conviction for an offence under

section 68 is in default for at least 60 days, the Director may, by order, create a lien against the property of the person or entity that is liable to pay the fine. Liens on personal property

(2) If the lien created by the Director under subsection (1) relates to personal property, (

a) the Personal Property Security Act, except

Part V, applies with necessary modifications to the lien, despite clause 4 (1) (

a) of that Act; (

b) the lien shall be deemed to be a security interest that has attached for the purposes of the Personal Property Security Act; and (

c) the Director may p erfect the security interest mentioned in clause (

b) for the purposes of the Personal Property Security Act by the registration of a financing statement under that Act. Liens and charges on real property

(3) If the lien created by the Director under subsection (1) relates to real property, the Director may register the lien against the property of the person or entity liable to pay the fine in the proper land registry office and on registration, the oblig ation under the lien becomes a charge on the property. Initiation of sale proceedings prohibited

(4) The Director shall not initiate sale proceedings in respect of any real property against which the Director has registered a lien under subsection (3). Proceeds of sale

(5) If a lien is perfected by registration under subsection (2) or is registered against real property under subsection (3) and the related real or personal property is sold, the Director shall ensure that the funds the Director receives as a result of the sale are used to pay the fine. Discharge of lien

(6) Within 10 days after the Director has knowledge of the payment in full of the fine, the Director shall, (

a) discharge the registration of any financing statement registered under clause (2) (c); and (

b) register a discharge of a charge created on registration of a lien under subsection (3). ADMINISTRATIVE PENALTIES Assessors 72

(1) The registrar is, by virtue of the registrar’s office, an assessor. Appointment

(2) The registrar shall appoint , in writing, persons to be assessors who are authorized to make an order under

section 73 imposing an administrative penalty. Order 73

(1) An assessor may, by order, impose an administrative penalty against a person in accordance with this

section and the regulations made by the Minister if the assessor is satisfied that the person, (

a) has contravened or is contravening, (

i) a prescribed provision of this Act or the regulations, or

28 (ii) a condition of a licence, if the person is the licensee; or (

b) is contravening a prescribed provision of the Protection for Owners and Purchasers of New Homes Act, 2017 or the regulations made under it. To whom payable

(2) An administrative penalty is payable to the regulatory authority. Purpose

(3) An administrative penalty may be imposed under this

section for one or more of the following purposes: 1. To ensure compliance with this Act and the regulations. 2. To prevent a person from deriving, directly or indirectly, any economic benefit as a result of contraveni ng a provision of this Act or the regulations. Amount

(4) The amount of an administrative penalty shall reflect the purpose of the penalty and shall be determined in accordance with the regulations made by the Minister, but the amount of the penalty shall not exceed $10,000. Form of order

(5) An order made under subsection (1) imposing an administrative penalty against a person shall be in the form that the registrar determines. Service of order

(6) The order shall be served on the person against whom the administrative penalty is imposed in the manner that the registrar determines. Absolute liability

(7) An order made under subsection (1) imposing an administrative penalty against a person applies even if, (

a) the person took all reasonable steps to prevent the contravention on which the order is based; or (

b) at the time of the contravention, the person had an honest and reasonable belief in a mistaken set of facts that, if true, would have rendered the contravention innocent. No effect on offences

(8) For greater certainty, nothing in subsection (7) affects the prosecution of an offence. Other measures

(9) Subject to

section 75, an administrative penalty may be imposed alone or in conjunction with the exercise of any measure against a person provi ded by this Act or the regulations, including the application of conditions to a licence by the registrar, the suspension, immediate suspension or revocation of a licence or the refusal to renew a licence. Limitation

(10) An assessor shall not make an ord er under subsection (1) more than two years after the day the assessor became aware of the person’s contravention on which the order is based. No hearing required

(11) Subject to the regulations made by the Minister, an assessor is not required to hold a hearing or to afford a person an opportunity for a hearing before making an order under subsection (1) against the person. Non-application of other Act

(12) The Statutory Powers Procedure Act does not apply to an order of an assessor made under subsection (1). Appeal 74

(1) In this section, “appeal body” means the person prescribed by the Minister or, if no person is prescribed by the Minister, the Tribunal. Same

(2) The person against whom an order made under subsection 73 (1) imposes an administrative penalty may appeal the order to the appeal body by delivering a written notice of appeal to the appeal body within 15 days after receiving the order . If no appeal

(3) If the appellant does not appeal the order in accordance with subsection (2), the order is confirmed.

29 Hearing

(4) If the appellant appeals the order in accordance with subsection (2), the appeal body shall hold a hearing and may, by order, confirm, revoke or vary the assessor’s order, and the appeal body may attach conditions to its order. Parties

(5) The assessor, the appellant and the other persons that the appeal body specifies are parties to the appeal. Non-application of other Act

(6) If the appeal body is not the Tribunal, the Statutory Powers Procedure Act does not apply to an order of an assessor appealed under subsection (2). Immediate effect

(7) Even if the appellant appeals an order of the appeal body, the order takes effect immediately, unless the order provides otherwise, but the Divisional Court may grant a stay until the disposition of the appeal.

Effect of paying penalty 75 If a person against whom an order imposing an administrative penalty is made pays the penalty in accordance with the terms of the order , or if the order is varied on appeal, in accordance with the terms of the varied order, the person cannot be charged with an offence under this Act in respect of the same contravention on which the order is based and no other prescribed measure shall be taken against the person in respect of the same contravention on which the order is based. Enforcement 76

(1) If a person against whom an order imposing an administrative penalty is made fails to pay the penalty in accordance with the terms of the order, or if the order is varied on appeal, in accordance with the terms of the varied order, the order may be filed with the Superior Court of Justice and enforced as if it were an order of the court. Date of order

(2) For the purposes of

section 129 of the Courts of Justice Act , the date on which the o rder is filed with the court shall be deemed to be the date of the order. Liens and charges

(3) If a person against whom an order imposing an administrative penalty is made fails to pay the penalty in accordance with the terms of the order , or if the order is varied on appeal, in accordance with the terms of the varied order, the Director may, by order, create a lien against the property of the person that is liable to pay the penalty. Application of s. 71 (4) Subsections 71 (2) to (6) apply to the lien, with necessary modifications, as if it were a lien created by the Director under subsection 71 (1), and references to the fine shall be read as references to the administrative penalty.

PART VI GENERAL Confidentiality 77

(1) A person who obtains informati on in the course of exercising a power or carrying out a duty related to the administration of this Act or the regulations shall preserve secrecy with respect to the information and shall not communicat e the information to any person except, (

a) as is required in connection with a proceeding under this Act or in connection with the administration of this Act or the regulations; (

b) to a ministry, department or agency of a government engaged in the administration of legislation similar to this Act or legislation that protects consumers or to any other entity to which the administration of legislation similar to this Act or legislation that protects consumers has been assigned; (

c) as authorized under the Regulatory Modernization Act, 2007; (

d) to a prescribed entity or organization, if the purpose of the communication is consumer protection; (

e) to a law enforcement agency; (

f) to the counsel of the person communicating the information; or (

g) with the consent of the person to whom the information relates.

30 Testimony

(2) Except in a proceeding under this Act, no person shall be required to give testimony in a civil proceeding with regard to information obtained in the course of exercising a power or carrying out a duty related to the administration of th is Act or the regulations. Service 78

(1) Any notice, order or request is sufficiently given or served if it is, (

a) delivered personally; (

b) sent by registered mail; or (

c) sent by another manner if the sender can prove receipt of the notice, order or request. Deemed service

(2) If service is made by registered mail, the service shall be deemed to be made on the third day after the day of mailing unless the person on whom service is being made establishes that the person did not, acting in good fait h, through absence, accident, illness or other cause beyond the person’s control, receive the notice, order or request until a later date. Exception

(3) Despite subsections (1) and (2), the Tribunal may order any other method of service it considers appropriate in the circumstances. Public information 79

(1) Subject to the regulations, the registrar shall make available publicly on the website of the regulatory authority and by any other means that the registrar determines, (

a) information about the business activities of any class of licensees or prescribed persons , including their business name, business address, phone number and electronic mail address; (

b) licensing information about a licensee, including the licensee’s licence number, the date that the licence expires and the current status of the licence; (

c) information about what persons are directors, officers or prescribed persons of a licensee, contact information for them and how they are interested in the licensee or associated with the licensee; (

d) information about persons who are subject to a notice of proposal under

section 43 ; (

e) information about persons whose licence has been suspended, immediately suspended or revoked; (

f) information about determinations and orders made by the discipline committee or appeals committee under

section 57; (

g) information about persons who have been subject to an order under any of sections 64, 65, 66, 67 and 69, including the terms of the order; (

h) information about persons who have been convicted of an offence under this Act; (

i) information about persons in respect of whom an assessor has imposed an administrative penalt y, including the amount of the penalty; (

j) information that the registrar receives under subsection 67 (1) of the Pr otection for Owners and Purchasers of New Homes Act, 2017; and (

k) any other prescribed information. Searchable information

(2) The public information described in subsection (1) shall be searchable, including by licensee name, names of directors, officers and principals, and as otherwise prescribed. Lieutenant Governor in Council regulations 80

(1) The Lieutenant Governor in Council may make regulations, (

a) specifying any matter that is described in this Act as prescribed or dealt with in the regulati ons, except for any matter that this Act describes as being prescribed by the Minister or dealt with in regulations made by the Minister; (

b) governing the revocation of the designation of the regulatory authority; (

c) respecting classes of licences; (

d) specifying the responsibilities of any former licensee or any class of former licensees , in connection with or arising out of the business in respect of which the former licensee was licensed or the class of former licensees was licensed or in respect of which licensing was required under this Act;

31 (

e) governing agreements that a vendor or builder enters into with the regulatory authority, including, (

i) deeming certain terms or conditions to be included in the agreements, (ii) prohibiting the agreements from including certain terms or conditions specified in the regulations, and (iii) specifying remedies for the parties to the agreements resulting from non-compliance; (

f) governing the information that

section 53 requires a vendor to deliver to a purchaser or a builder to deliver to an owner; (

g) governing agreements that a vendor enters into with a purchaser, including, (

i) deeming certain terms or conditions to be included in the agreements, (ii) requiring the parties to each agreement to include certain specified terms or conditions, (iii) prohibiting the agreements from including certain terms or conditions specified in the regulations, and (iv) specifying remedies for the purchaser resulting from non-compliance; (

h) governing contracts for the construction of a new home that a builder enters into with an owner, including, (

i) deeming certain terms or conditions to be included in the contracts, (ii) requiring the parties to each contract to include certain specified terms or conditions, (iii) prohibiting the contracts from including certain terms or conditions specified in the regulations, and (iv) specifying remedies for the owner resulting from non-compliance; (

i) governing what constitutes a false, misleading or deceptive representation for the purpose of

section 54; (

j) governing the activities of licensees and prohibiting licensees from engaging in practices specified in the regulation s, in addition to practices prohibited by this Act; (

k) specifying procedures and other matters for handling complaints under

section 56; (

l) governing the documents and records that licensees must keep, including the manner in which licensees must keep them and the time periods for which they must be kept and authorizing the r egistrar to specify the location at which licensees must keep them; (

m) defining any word or expression used in this Act that has not already been expressly defined in this Act; (

n) exempting any person or entity or any class of persons or entities from any provision of this Act or the regulations and attaching conditions to an exemption; (

o) delegating to the Minister or to the regulatory authority any power to make a regulation under this subsection; (

p) respecting any matter necessary or advisable to carry out the intent or purpose of this Act; (

q) providing for any transitional matter necessary for the effective implementation of this Act or the regulations or related to the repeal of the Ontario New Home Warranties Plan Act, including, (

i) deeming information provided under that Act to have been provided under this Act, and (ii) governing fees and other amounts paid under that Act and deeming them to have been paid under this Act. Approval required

(2) The Lieutenant Governor in Council may make the regulation -making power delegated to the Minister under clause (1) (

o) subject to its approval. Residual authority to act

(3) Despite any delegation to the Minister under clause (1) (

o) and without having to revoke the delegation, the Lieutenant Governor in Council continues to have authority to make regulations in respect of the power that is the subject of the delegation. Making regulation not revocation

(4) If the Lieutenant Governor in Council makes a regulation to which subsection (3) applies, th e regulation does not have the effect of revoking a delegation under clause (1) (

o) unless the regulation so specifies. Minister’s regulations preserved

(5) The Lieutenant Governor in Council may, by regulation, revoke a delegation to the Minister under c lause (1) (o), but the revocation of a delegation does not result in the revocation of any regulation made by the Minister under the delegated power before the revocation of the delegation.

32 Conflict

(6) If there is a conflict between a regulation made und er subsection (1) and a regulation made by the Minister under

section 81 or the regulatory authority under

section 82, the regulation of the Lieutenant Governor in Council prevails. Minister’s regulations 81

(1) The Minister may make regulations, (

a) requiring the registrar to share with the Minister the information that the registrar collects under subsection 34 (1); (

b) requiring the regulatory authority to provide the Minister, the warranty authority or any other person prescribed by the Minister with the information specified in the regulation and governing the providing of the information , including the form, manner and time for providing the information; (

c) respecting applications for a licence and for renewal of a licence; (

d) requiring an applicant for a licence or a renewal of a licence to provide information to the registrar concerning persons other than the applicant in order to assist the registrar in determining whether the persons are or may be interested persons; (

e) specifying information that licensees must provide to the registrar and requiring that specified information be verified by affidavit; (

f) establishing a code of ethics for the purposes of subsection 57 (1); (

g) governing the composition of the discipline committee and the appeals committee under

section 57 and, subject to subsection 57 (3), governing matters relating to the appointment of the members of those commit

Document details

Collection	Ontario — Bills
Citation	Bill 166, 41-2
Type	bill
Volume / chapter	p41 s2 bill 166 bill text 41 2 en b166 e.pdf
Language	en
Format	json
Source	PROVINCIAL
Identifier	6bbb8247238a1e1e45f9d885f6ef4a9ebe82ed1c

Source file is stored in the law ingest library (json).