Province wants to shut down Burlington developer for misleading consumers
Published September 12, 2022 at 10:26 am
A Burlington condo builder’s very existence is being threatened by a provincial body that polices the new construction industry.
Adi Development Group, which is involved in several projects across the city, has received a notice from the Home Construction Regulatory Authority (HRCA) to revoke their licence.
The public filing was sent to Tariq Adi and Daniela Toma, and is calling for the revocation of building licences of six of the umbrella group’s nine entities for violations under the New Home Construction Licencing Act (NHCLA).
The ongoing projects in question are The Nautique Lakefront Residences located at 364 Martha Street, Realm Condominiums at 4853 Thomas Altona Boulevard, and The Valera, at 4880 Valera Road, all in Burlington.
“Adi Development Group has demonstrated, through the conduct of its related entities and interested persons, that its corporations should not be licenced builders or vendors under the NHCLA,” states the filing.
The other three licences would remain, allowing the company to complete ongoing development projects to avoid putting consumers at further risk by cancelling them mid-construction.
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The HCRA was started in 2021, an offshoot of the Tarion licencing board. The inability of Adi to obtain an HCRA licence would make any sales illegal and effectively shut them down.
The HCRA is acting on several complaints about Adi cancelling 174 sales in the Nautique development in March due to the builder’s “failure to obtain satisfactory construction financing”.
The cancellations came after a significant increase in sales prices in the market and Adi didn’t cancel all purchase agreements, only those without a high enough sales price. The HCRA says Adi then sought to resell the units at substantially higher prices.
By June, Adi had issued only 27 purchasers their deposit refunds, confirming they would only make refunds after a had been resold at the higher price and a new deposit received.
The HCRA adds that in response to a request for sale agreement documentation, Adi provided falsified versions, with altered dates and termination clauses.
“Not only is this unethical, and a violation of both the NHCLA and the Ontario New Home Warranties Plan Act (ONHWPA) but it also raises concerns about Adi Morgan Developments (Lakeshore) Inc.’s financial responsibility and competency.”
Adi has filed an appeal that gives it the right to a hearing before a provincial tribunal.
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