An Ontario developer is accused of coercing 142 project buyers prior to construction to pay more money for the same homes that bought up to two years before, statements that are now subject to an audience of the disciplinary committee referred to by the regulatory authority of the province.
According to a statement of accusations listed on the website of the Housing Construction Regulatory Authority (HCRA), Briarwood Development Group, buyers, would have to sign a release that lost their homes if they did not accept to pay the additional amounts. It is alleged that the company extracted more than $ 18 million from buyers.
The accusations focus on the houses prior to construction in the communities of Ontario de Stayner, Angus, Quinte West and Georgina. The statements are that Briarwood demanded increases ranging from $ 16,000 for an Angus project at home at $ 320,000 for a Stayner project house.
CBC Toronto communicated with Briarwood representatives to comment last week, but did not receive an answer. According to the HCRA audience office, Briarwood has not yet begun its defense and has not yet entered the documents on which it is based as exhibitions.
CBC Toronto reported for the first time about the accusations made against Briarwood Homes In 2022 related to your project in Stayner. At that time, multiple buyers told CBC Toronto that Briarwood representatives told them that they needed to pay more to build their homes or sign a release agreement that would see them lose their homes and recover their deposits.
At that time, a Briarwood spokesman told CBC Toronto that the sudden price increase was due to supply chain problems and high labor costs and materials linked to the pandemic.
The audience of the disciplinary committee, which is held virtually, began on February 24.
According to the annual HCRA reports, he received 2,606 complaints from the public since its inception In 2021. Since then, two have been heard by a panel of the disciplinary committee, although, according to the HCRA website, another case was suspended in 2023, and three other cases are scheduled to be heard.
What happens later with the disciplinary process?
A disciplinary audience is one of the many potential results of a complaint filed with the HCRA. Its registrar determines the best course of action, which could include the collection of fines, licensing suspensions or the placement of positions under several provincial acts.
“The appropriate application action for each case is determined based on the specific facts of the matter and the potential risk or damage to consumers,” said a HCRA spokesman to CBC Toronto.
According to the declaration of the accusations in the case of Briarwood, the HCRA registrar highlighted the relevant section of its code of ethics such as “equity, honesty and integrity”, which establishes: “When taking business, a licensee must treat each person that the licensee treats fairly, honestly and with integrity.”
The registrar continues to say: “There was nothing in the APSS [agreements of purchase and sale] That allowed Briarwood to demand, or required buyers to pay this additional payment. As a result of these increases in little ethical prices, Briarwood extracted a monetary benefit of more than $ 18 million of these buyers. “
The audiences are heard before a panel composed of a certain number of people who are builders or housing developers (licensees), as well as members of the general public.
The panel of the disciplinary committee will determine whether the Code of Ethics has been violated. If there has been a violation, there are several results of a builder that is ordered to bring educational courses to fines of up to $ 100,000. However, the HCRA told CBC Toronto that if it is discovered that a licensee received a monetary benefit by not complying with the HCRA Ethics Code, it could impose a fine equal to the amount of that benefit, and those funds could be addressed to the impacted buyers.
Defenders of better industry protection for buyers are welcoming the decision to hold a disciplinary hearing in the case of Briarwood.
“Anyone who wants to do this again in the future … will be very careful due to Briarwood’s case, however, it turns out that,” said real estate lawyer Bob Aaron, who represents some clients affected by the alleged Briarwood actions.
“This can put a complete stop to this type of practice,” Aaron told CBC Toronto.
Historically, Aaron has been critical of consumer protection organizations, such as Tarion, which manages the New Home Home Warranty Program, and HCRA, for not doing enough to protect consumers. But he says he welcomes the recent actions of the regulatory authority.
“I am really encouraged now that these regulators are taking a step forward,” Aaron said.
The audience has been postponed until the end of this month.
