A well known developer in the GTA has recently come under fire for it’s treatment of purchasers on a condo development in Downtown Burlington. Allegations were brought to the attention of the Home Construction Regulatory Authority, a division that was created in 2021 after the government removed the powers of home-building regulatory from Tarion about Adi Developments.
Last spring purchasers of the Adi Developments Nautique condos were notified that they had to pay hundreds of thousands more for the units that they purchased several years earlier. If buyers chose not to pay the increased purchase price their agreements with Adi Developments were cancelled and all their deposits were returned, however of the buyers that were notified only 27 buyers had received payment thus far.
With other allegations such as doctored contract dates, Adi not co-operating with the investigation with HCRA and dividing larger units into smaller ones for more money possibly the HCRA is proposing that their building licence be revoked with the exception of finishing their three projects that are currently being built in Burlington.
We’ve heard rumblings of other developers throughout the GTA looking to increase the purchase price of condo units already sold due to the inflation of building materials during Covid. The planned projects are costing more to build than what they sold them for and there is risk of bankruptcy for these developers.
Our city needs to do more due diligence with approving projects of these developers because the residents who trusted these developers and spent their hard earned money and savings for a home are the ones who are impacted most. This is the first time a builder’s licence could be revoked and sets a high precedent for builders in the future.
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