Buyer says two-bedroom townhome became one-bedroom plus den, months after closing delays
A Toronto buyer who paid for a two-bedroom townhome says she received a one-bedroom with a doorless den, higher fees and months of occupancy charges. She has filed complaints with Tarion and the HCRA.
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By Torontoer Staff
A first-time buyer who says she purchased a two-bedroom townhouse on Victoria Park Avenue discovered a one-bedroom unit with a doorless den when she took possession in 2024. Yvonne Tsui says closing was delayed for years, occupancy fees ran into the thousands, and condo fees turned out to be far higher than advertised.
Tsui has filed complaints with Tarion and the Home Construction Regulatory Authority, and Tarion has 15 active files relating to the 147-unit, four-block development. The developer disputes the core claim and says it is addressing buyer concerns.
What Tsui says happened
Tsui says she paid $515,000 for a unit at 1650 Victoria Park Ave. and made three deposits totalling 15 per cent of the purchase price. She says the project was clearly marketed as a two-bedroom townhome and that the floor plan attached to her Agreement of Purchase and Sale shows two enclosed rooms with doors.
When she received the keys, the second room had no door and the developer described the unit as a one-bedroom plus den. She also says condo fees were marketed at $0.24 per square foot but turned out to be $0.36. Additional unexpected charges include a high monthly fee for a hot water heater rental and water billed separately despite marketing that suggested it would be included.
I have been robbed of the joy and excitement one should feel as a first-time homebuyer.
Yvonne Tsui
Developer response and causes given for delays
Solotex Group, the developer on the project, says some buyers moved into the first two blocks while construction continued on the rear homes, and registration could not proceed until the entire project was finished. The company blames COVID-19, financing problems and the collapse of a financing partner for delays.
CEO Paul Goldfischer says the unit was marketed as a one-bedroom plus den and was built according to the plan attached to Tsui’s purchase agreement. He says 20 workers are on site resolving issues, that a door will be installed in the den at Tsui’s request, and that the team expects to wrap up by mid-January.
The unit was marketed as a one bedroom plus den and built in accordance with the plan attached to the Agreement of Purchase and Sale.
Paul Goldfischer, CEO, Solotex Group
How occupancy fees and fee increases worked in this case
Buyers who occupy a unit before title registers typically pay occupancy fees. The developer says those payments covered interest on a so-called phantom mortgage, plus common expense fees. Goldfischer says the interest rate was set in accordance with Tarion rules and that increases in water and hydro, and general inflation, drove higher condo fees.
Buyers say the length of the occupancy period has been a major financial burden. One purchaser, Sean Lee, put about 20 per cent down in 2021 and has been paying higher monthly costs than he expected after a 14-month occupancy period and subsequent fee increases.
It turned out to be a nightmare.
Sean Lee, buyer
Broader concerns and regulatory avenues
The dispute highlights common pain points in the pre-construction market: long delays, ambiguous contract language, and differences between marketing materials and the plan attached to the purchase agreement. Contracts frequently state that dimensions and layouts are approximate, language that can give developers room to alter details.
Two provincial bodies handle complaints and oversight. Tarion administers the Ontario New Home Warranties Plan and can help resolve warranty and delay claims. The HCRA licences builders and investigates professional conduct. Both bodies say they encourage purchasers to file complaints, but buyers and consumer advocates say the process can be slow.
It is dressed up as consumer protection, but it is, in fact, providing weasel clauses for developers to get out of their obligations.
Barbara Captijn, consumer advocate
Practical steps for prospective buyers
- Insist the floor plan attached to the purchase agreement matches the marketed layout and is labelled as definitive.
- Have a real estate lawyer review clauses on dimensions, occupancy, and early termination before you sign.
- Confirm how condo fees are calculated and whether utilities or equipment rentals are extra.
- Ask about phased registration and how occupancy fees will be calculated if the project is completed in stages.
- Document marketing materials and correspondence, and file complaints with Tarion and the HCRA promptly if issues arise.
Conclusion
Tsui is living in the unit with a curtain strung where a door should be. She says she is still waiting for the promised installation and for regulators to resolve her complaints. The experience has convinced her she will not buy pre-construction again.
I'm never going to buy pre-construction again.
Yvonne Tsui
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