What are Bankruptcies, Insolvencies and Receiverships
New home builders may encounter financial difficulties that prevent them from completing new home construction projects and/or fulfilling their warranty obligations to owners.
Insolvency describes a company that is experiencing financial challenges and cannot repay its debts. Bankruptcy and receivership are two different legal processes that address a company’s insolvency. In some cases, an insolvent company may be involved in both bankruptcy and receivership proceedings at the same time.
When it comes to builders, it is difficult to predict what the outcome of a bankruptcy or receivership process will be. The builder may or may not be able to continue their operations (e.g., completing a new home you purchased, or continuing to service warranties for a home you have already moved into).
If an insolvent builder is unable to continue its operations and meet its obligations to purchasers/owners of new homes, consumers can have confidence that the pre-possession and post-possession warranties will be backstopped by Tarion.
Current Issues/Cases
Below you can find more information about some of the insolvency situations that Tarion is monitoring. Please note that this may not be a complete list of current insolvency situations. If your builder/project is listed below, please monitor updates posted here by Tarion regarding when purchasers are eligible to submit a deposit claim.
If your builder is not listed below and you have questions about deposit claims, you can contact Tarion at cca.group@tarion.com 1-877-982-7466 ext. 3005. We also recommend that you obtain independent legal advice from your real estate lawyer, including if you have questions about the status of an insolvency situation.