GTA developer will lose licences and have to pay out buyers after selling homes illegally
A real estate developer behind multiple condo, townhome and detached housing communities in the GTA is facing some stiff penalties after it was found to be selling its homes to residents without the appropriate licences and registrations.
The Home Construction Regulatory Authority, appointed in 2021 to oversee builder operations in the province, is forcing Markham-based Ideal (BC) Developments to pay out $150,000 total to families that bought from the company, which, as the HCRA said in a release this week, "has never had a licence to build or sell new homes in Ontario."
"It illegally took in hundreds of thousands of deposits on the sale of new homes in Richmond Hill from unsuspecting purchasers," the group said, adding that Ideal also failed to provide evidence during a search warrant, which will cost it another $18,750 in fines on top of a $15,625 penalty for illegal selling.
Furthermore, two subsidiaries under the same banner that are connected to the offending brand — Ideal (MM) Developments Inc. and Ideal (WC) Developments Inc. — will not be allowed to renew their existing licences.
Following an investigation by the Home Construction Regulatory Authority, Ideal (BC) Developments Inc. has pled guilty to selling a new home without a licence and other charges.
— Home Construction Regulatory Authority (@hcraontario) December 18, 2023
Read the news release here: https://t.co/gMf1WYaB1p pic.twitter.com/6oHB2oosca
According to the ruling, Ideal as a whole "will not carry on building or vending of homes," except to complete a single project already (legally) underway in their hometown of Markham.
The company faces 10 counts of selling homes on Bostwick Crescent in Richmond Hill without licences to do so, and without being registered with Tarion Warranty Corporation, which is in contravention of the province's New Home Construction Licensing Act.
The HCRA will divide the $150k equally between the affected buyers, who had already put down deposits, though reports show there are many other victims who bought — and lost millions of funds collectively — in Ideal's now-cancelled neighbourhoods.
"This outcome reinforces our message that anyone building and selling new homes must have a valid licence from the HCRA. It's the law," the group says of the ruling.
"While this restitution does not compensate purchasers for their lost deposits, we hope it helps alleviate some of their financial loss."
