Ontario Construction News staff writer
The Home Construction Regulatory Authority (HCRA) has revoked the licence of a Hamilton builder for selling more than 100 homes without enrolling them in Tarion’s warranty program.
Mariman Homes also had to pay $400,000 in administrative penalties by the HCRA for failing to hold deposits as required, as well as for allowing creditors to seek inappropriate price increases.
The HCRA said it took over the company’s operations in December 2023 after receiving complaints from purchasers. It was found that the company had signed up for 108 home purchases without proper authorization and enrolment.
The HCRA gave Mariman the chance to enrol the homes and prove it could complete construction within the promised timeframe and price, but says the company was unable to satisfy its commitments.
“Given these infractions, including a history of financial mismanagement, the HCRA has revoked Mariman’s licence to build and sell new homes,” said Wendy Moir, Chief Executive Officer and Registrar of the HCRA. “Protecting consumers is our top priority. This builder’s past and present conduct raises serious doubts about its ability to operate their business lawfully, and with honesty and integrity.”
The Toronto Star reported HCRA documents reveal that “Mariman Homes entered into agreements to build and sell 108 homes from prospective purchasers across multiple projects in the province when they only had authorization to do so for seven properties.
“In looking at their finances, the HCRA also notes an “unexplained shortfall” of $14 million of deposit funds from homebuyers across several projects,” the published report says.
According to the HCRA, anyone building or selling a new home in Ontario must have a valid licence and must also apply to Tarion for approval.
Mariman is currently undergoing receivership proceedings in the Ontario Superior Court of Justice. Tarion continues to monitor the situation for any impact on deposit protection coverage for purchasers. Tarion covers up to a maximum of $100,000 in deposits based on 10 per cent of a $1 million purchase price, with overall up to $60,000 in deposits for projects valued at $600,000 or less.