About 2174542 Ontario Inc., Safe Harbour Homes Inc. and Safe Harbour Developments Inc.
On May 31, 2024, the Ontario Superior Court of Justice appointed a receiver over 2174542 Ontario Inc., Safe Harbour Homes Inc. and Safe Harbour Developments Inc. Tarion continues to monitor the situation. We understand that purchasers of pre-construction homes are concerned about what the receivership means for their purchase agreements.
We encourage you to speak with your real estate lawyer if you have questions about your agreement of purchase and sale and the receivership process. Information about the receivership is available on the Receiver’s website.
Tarion will update this page from time to time.
Purchasers of Pre-Construction Homes
On May 31, 2024, the Ontario Superior Court of Justice appointed TDB Restructuring Limited. (the “Receiver”) as the receiver over 2174542 Ontario Inc., Safe Harbour Homes Inc. and Safe Harbour Developments Inc. As at the above date, neither the appointment of the receiver nor the commencement of receivership proceedings have resulted in the termination or fundamental breach of any purchase agreements, and a stay of proceedings is in place.
For more information about deposit protection you can visit our pre-possession warranty coverage and claims page.
How Tarion will support purchasers
Under the Ontario New Home Warranty Plan Act, purchasers of new homes have deposit protection coverage up to certain limits in the event that a sale is not completed. For purchase agreements signed on or after January 1, 2018, deposit coverage depends upon the purchase price of the home. For homes with a purchase price of $600,000 or less, deposit coverage is up to $60,000. For homes with a sale price of over $600,000, deposit coverage is up to 10% of the purchase price to a maximum of $100,000.
Purchasers can have confidence that if purchase agreements are ultimately terminated as part of the receivership process or by transactions completed thereunder, and deposits are not refunded through the receivership process, then you will be able to submit a Deposit Protection claim to Tarion.
You can learn more about the deposit protection offered by Tarion here. There may also be a future claims procedure order made in the receivership proceedings, pursuant to which purchasers who paid deposits for pre-construction homes will be able to file claims.
Owners of completed homes
Homeowners who have already been given occupancy of a completed home by the above builder companies under receivership should continue to submit warranty claim forms (eg. 30-Day, Year-End, Second Year, and Major Structural Defect forms) in the usual course and according to the relevant deadlines.
Homeowners can have confidence that Tarion will process warranty claim forms, schedule and conduct conciliation inspections and backstop the builder’s warranties if the builder is unable to fulfill their warranty commitments.