A developer that was at risk of facing over $30 million in fines from Ontario’s Home Construction Regulatory Authority (HCRA) has had all accusations dropped. In the largest case ever brought before the HCRA’s discipline committee, Briarwood Development Group was alleged to have breached the province’s home builders’ code of ethics by pressuring 142 buyers to pay more for pre-construction homes they had already put deposits on and signed agreements for, resulting in over $18 million in additional payments.
All charges against Briarwood were dismissed or withdrawn recently, as the HCRA failed to substantiate its case with compelling evidence. Briarwood’s legal team is commending the outcome and asserts that the developer conducted itself ethically and openly with buyers.
Despite this, many buyers and advocates argue that the result indicates the HCRA’s inadequacy in overseeing the industry and are urging the province to intervene. Some buyers who refused Briarwood’s price hike claim they are still in a state of uncertainty years later, without their homes.
The allegations against Briarwood date back to 2022 concerning pre-construction projects in Stayner, Angus, Quinte West, and Georgina. Initially reported by CBC in 2022, buyers who had already committed to agreements with Briarwood were reportedly asked for additional payments. The buyers were allegedly given a choice: pay more or terminate the sales agreement.
Briarwood attributed the price increases to supply chain challenges and escalating costs during the COVID-19 pandemic. Following numerous complaints, the HCRA accused 142 buyers of being coerced into paying more, violating the code of ethics under the New Homes Construction Licensing Act, which mandates builders to treat all parties fairly, honestly, and with integrity.
During the disciplinary hearings, the HCRA’s case crumbled. The expert witness intended to discuss the impact of the pandemic on developers was disqualified due to a lack of relevant expertise in residential construction, as argued by Briarwood’s lawyers. The HCRA presented evidence related to only 14 properties, with no direct evidence for the remaining 128 properties.
Briarwood’s legal team contended that the HCRA lacked evidence and successfully submitted a non-suit motion for 128 counts, leading to their dismissal. Subsequently, the remaining 14 counts were withdrawn by the HCRA as part of a resolution, the details of which were not disclosed.
Reacting to the verdict, real estate lawyer Bob Aaron expressed disappointment, criticizing the HCRA for insufficient evidence preparation. The HCRA defended its investigation, stating they presented the available facts diligently and vowed to strengthen future referrals based on the case’s lessons.
MPP Tom Rakocevic, the NDP critic for public and business service delivery and procurement, expressed shock and dissatisfaction with the outcome, raising concerns about the HCRA’s ability to safeguard home buyers. Ontario Premier Doug Ford, who previously pledged to address price hikes by home builders, did not respond to queries on the HCRA’s effectiveness in protecting consumers.
One of the affected buyers, Jagat Patel, is uncertain if he will ever obtain the home he desired in Stayner, expressing disappointment with the lack of resolution. Patel may consider legal action as his next step, although affordability remains a concern.