Boss Luxury Towns (Yonge & Bond Richmond Hill, Ideal Developments, 3s, ?)

[Edward Skira]

Yonge & Bond Crescent Richmond Hill

 

[AlbertC]

Homebuyers set to lose unprotected deposits of up to $150K after GTA developer refused licences​

May 2, 2022

The 72-townhouse project — Boss Luxury Towns — from Ideal Developments was cancelled last fall after the developer was charged by Ontario's Home Construction Regulatory Authority for operating without a licence and was later refused a licence by the provincial oversight body.

Since then, the secured lenders for the project have started a receivership proceeding to sell the development land near Yonge Street and Bond Crescent to recoup their loans. If the sale is approved by the court Tuesday, Patel and other freehold townhouse purchasers were told there likely won't be any money left over to pay back their deposits.

The 61-year-old is one of 29 purchasers who CBC News has confirmed put down a combined $5.7 million in deposits across two cancelled townhouse projects from Ideal Developments where construction never started. Their individual deposits range from $120,000 to $250,000.

The group of buyers stands to collectively lose $2.8 million because Ontario's home warranty program only protects a maximum of $100,000 for freehold home deposits — and unlike with condos, the developer isn't required to hold deposits in trust.

https://www.cbc.ca/news/canada/toronto/gta-homebuyers-set-to-lose-millions-unprotected-deposits-1.6435599

 

[interchange42]

Homebuyers set to lose unprotected deposits of up to $150K after GTA developer refused licences​

May 2, 2022

https://www.cbc.ca/news/canada/toronto/gta-homebuyers-set-to-lose-millions-unprotected-deposits-1.6435599

Appalling situation.

42

 

[Northern Light]

I can't fathom any good reason this:

The law should be clear and unequivocal on this point, 100% of any deposit on any project should be held in trust, and fully covered by the Home Warranty Program.

 

[A Torontonian Now]

I can't fathom any good reason this:

View attachment 397633

The law should be clear and unequivocal on this point, 100% of any deposit on any project should be held in trust, and fully covered by the Home Warranty Program.

I'd have to learn more about the specifics of the topic to know these are the right solutions - there might be good reason to allow deposits to be accessed to fund project expenses, but if so, they should be insured, whether through the Home Warranty Program, or some other privately funded means. Or at a bare minimum, they should have equal priority to secured lenders in bankruptcy.

Regardless of how it is achieved, I 100% agree that buyers' deposits ought to be protected.

 

[youngblood]

Such a sad story