HCRA to Distribute Proceeds to Impacted Purchasers
TORONTO, December 18, 2023 – Following an investigation by the Home Construction Regulatory Authority (HCRA), Ideal (BC) Developments Inc. has pled guilty to selling a new home without a licence and other charges.
Ideal (BC) 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. As a result, the Ontario Court of Justice sentenced Ideal (BC) to fines of $15,625 for illegal selling and $18,750 for failing to provide evidence required by a search warrant.
Additionally, the Court ordered Ideal (BC) to pay $150,000 to the HCRA as a restitution order. The HCRA in turn will distribute the funds equally among the wronged purchasers to partially offset the lost deposits they had paid to Ideal (BC). The charges and conviction stem from the HCRA’s investigation of Ideal (BC) regarding concerns they had entered into agreements of purchase and sale without a licence.
“This outcome reinforces our message that anyone building and selling new homes must have a valid licence from the HCRA. It’s the law,” says Wendy Moir, the HCRA’s Chief Executive Officer and Registrar. “While this restitution does not compensate purchasers for their lost deposits, we hope it helps alleviate some of their financial loss.”
As an additional step, the HCRA has also refused to renew licences for all Ideal Developments Inc. and all related companies, and they are no longer licensed to build or sell new homes.
“The HCRA will continue to investigate and take action against illegal building and selling where necessary,” Moir says. “Consistently enforcing high professional standards for the sector is critical for protecting consumers and giving new home buyers confidence when making one of the biggest purchases of their lives.”
About the HCRA
The Home Construction Regulatory Authority is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders.
In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and hosts the Ontario Builder Directory (OBD) – the authoritative source of background information about each of Ontario’s more than 6,500 new home builders and vendors.
Contact: Tess Lin
media@hcraontario.ca