Toronto – Peterborough area builder Kings Custom Homes Inc and owner Corey Savary have been convicted of illegal building for failing to enrol a home in Douro-Dummer. Together, Mr. Savary and the company were fined $76,625 by the Ontario Court of Justice.
The conviction comes on the heels of a Tarion investigation into both Kings Custom Homes Inc and owner Corey Savary, beginning in January 2017. Tarion initially received a complaint from a Realtor regarding the home which was listed for sale. The purchasers had made $40,000 in deposits, but the home was not enrolled in the new home warranty program.
“This was a red flag for us and once we dug deeper, we discovered Kings Custom Homes had collected deposits for 29 new homes in the surrounding area,” says Tanya Gibson, Tarion’s Director of Compliance and Investigations. “Construction hadn’t started on any of these homes nor were there any building permits issued.”
Tarion’s investigation revealed that Kings Custom Homes Inc. had collected more than $1.1 million in deposits after entering into 29 agreements of purchase and sale for homes that were never built.
Under the Ontario New Home Warranties Act, each purchaser was eligible for a maximum of $40,000 in deposit protection. Tarion has subsequently paid out $360,000 in deposit claims to date.
In March 2018, Tarion revoked the registration of Kings Custom Homes Inc, which means the company and Mr. Savary are no longer allowed to build new homes in Ontario.
“This is an example of how leads from the public – coupled with the cooperation of municipal building officials – can result in successful convictions of illegal builders,” says Gibson. “The good news is that this builder can no longer build, but unfortunately the purchasers didn’t end up with what they truly wanted – their new homes.”
If consumers suspect their home has been built illegally, they can contact Tarion at 1-877-982-7466 ext. 3833, or by sending an email to email@example.com.
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