[AppraiserChat.com] HCRA Revokes Mariman Homes’ Licence - Hamilton builder

[Michael A. Roman]

Hi ,

Hamilton builder failed to enrol homes in warranty program
https://hcraontario.ca/news-and-events/news-releases/hcra-revokes-mariman-homes%E2%80%99-licence/

> TORONTO, August 29, 2024 ? 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.





Michael Roman
--
Michael A. Roman, CRA,P.App,FRI,PLE,CRF, Senior Appraiser
INHOUSE APPRAISAL CORPORATION
Real Estate Appraisal & Consultants
33 Ivan Road, Toronto, Ontario, Canada M1C 1V1
Phone: 416-282-4111
E-mail: maroman at ihac.com
Web Site:   IHAC.com   or   INHOUSEappraisal.com 
Copyright (c) 2024 Michael A. Roman - ALL RIGHTS RESERVED
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