About Jefferson Properties Limited – 39,53,67 Jefferson Side Road, Richmond Hill
Tarion continues to closely monitor the situation involving 2011836 Ontario Corp. and Jefferson Properties Limited Partnership (together, “Jefferson”). 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 December 21, 2023, the Ontario Superior Court of Justice (the “Court”) appointed Albert Gelman Inc. as the receiver (the “Receiver”) for Jefferson. Tarion understands that the “Richmond Hill Grace” pre-construction projects located in Richmond Hill are subject to the receivership.
Please note that the updates are different for freehold purchasers and condominium purchasers.
Freehold Purchasers
On May 27, 2024, the Court made an order, among other things, authorizing the Receiver to terminate the agreements of purchase and sale for Jefferson freehold homes.
As at the date of this notice, Tarion understands that such agreements of purchase and sale been terminated by the Receiver and that the affected freehold purchasers have received notice of same from the Receiver. Based on information from the Receiver, it is Tarion’s understanding that there is no prospect of freehold purchasers recovering any of their deposits by submitting claims in the receivership.
Jefferson freehold purchasers who receive written notice that their purchase agreement has been terminated may contact Tarion to submit a Deposit Protection claim. You can learn more about the deposit protection offered by Tarion here. If you wish to make a deposit claim you can follow the steps on this webpage.
Condominium Purchasers
On their own, neither the appointment of the Receiver nor the commencement of receivership proceedings resulted in the termination or fundamental breach of Jefferson agreements of purchase and sale. As of the date of this notice, Tarion understands that agreements of purchase and sale for Jefferson condominium homes have not been terminated by the Receiver and the stay of proceedings in respect of such agreements remains effective.
Tarion further understands that the Receiver will be communicating directly with purchasers of Jefferson condominium homes.
For more information about deposit protection you can visit our pre-possession warranty coverage and claims page, or our article on deposit protection.
How Tarion will support purchasers
Freeholds
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.
Condominiums
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. Tarion provides deposit protection of up to $20,000 in respect of condominiums.
You can learn more about the deposit protection offered by Tarion here.