HCRA Revokes Mariman Homes' Licence

Hamilton builder failed to enrol homes in warranty program

TORONTO, Aug. 29, 2024 /CNW/ - Mariman Homes ("Mariman") has had its licence to build and sell homes in Ontario revoked, the most severe action the Home Construction Regulatory Authority (HCRA) can take against a licensed builder.

Acting on complaints from purchasers, the HCRA suspended Mariman's licence in December 2023 after an inspection revealed the company had entered into agreements of purchase and sale for 108 homes without proper authorization and enrolment in Tarion's warranty program. Further, the HCRA discovered that Mariman had allowed its creditors to seek improper price increases from purchasers and failed to hold the deposits it received in trust, as was required under Mariman's purchase agreements.

To minimize harm to purchasers, the HCRA gave Mariman the opportunity to enrol the homes and prove it could complete construction within the timeframe and price it promised to purchasers. The HCRA's goal was to find a solution that would have resulted in purchasers obtaining their homes, rather than revoking Mariman's licence which would have shut down the builder's operations immediately.

Unfortunately, Mariman was unable to satisfy its commitments. As a result, the HCRA revoked its licence to build or sell homes and ordered it to pay administrative penalties totaling $400,000.

"Given these infractions, including a history of financial mismanagement, the HCRA has revoked Mariman's licence to build and sell new homes," says 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."

Anyone building or selling a new home in Ontario is required to have a valid licence from the HCRA. They also must apply to Tarion for approval and to enrol the home in the province's warranty plan. It is illegal to build and sell new homes without meeting these requirements.

"This former licensee sold more than 100 homes it was not authorized to sell. The HCRA attempted to work with Mariman to avoid additional harm to consumers, but Mariman was unable to meet these commitments," Moir says. "This is a textbook example of why builders and sellers must go through the licensing and enrolment process. These standards are designed to ensure builders have the competency and financial capability to operate a business before they collect money from purchasers."

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.

About the HCRA

The Home Construction Regulatory Authority is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders.

In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and hosts the Ontario Builder Directory – the authoritative source of background information about each of Ontario's nearly 7,000 new home builders and vendors.

SOURCE Home Construction Regulatory Authority (HCRA)

Tess Lin, [email protected]