September 19, 2023
Tarion continues to closely monitor the situation involving several licensed builders within the StateView Homes group. We understand that purchasers of StateView’s pre-construction homes are concerned about the status of the projects and what it means for their purchase agreements.
We encourage you to speak with your real estate lawyer if you have questions about the StateView situation and receivership process. Information about the receiverships is available on the receivers' websites (see hyperlinks below).
Tarion will update this notice from time to time.
Purchasers of StateView’s Pre-Construction Homes
Hampton Heights project
On June 15th, 2023, the court appointed RSM Canada as receiver for StateView's Hampton Heights pre-construction project. On August 18th, 2023, the court approved the sale of StateView’s assets related to the Hampton Heights project. The court order provided for the termination of all existing purchase agreements for the Hampton Heights project.
Tarion expects that purchasers of homes at the Hampton Heights project will imminently be advised that their purchase agreement is terminated. Based on Information from RSM Canada, it is Tarion’s understanding that there is no prospect of purchasers recovering any of their deposits by submitting claims in the receivership.
Hampton Heights purchasers who receive written notice that their purchase agreement has been terminated may contact Tarion to submit a Deposit Protection claim. You can learn more about the deposit protection offered by Tarion here. If you wish to make a deposit claim you can follow the steps on this webpage under the heading "How to make a claim".
Minu Towns, Nao Towns, Nao Towns II, Nashville (Highview), BEA Towns, Elm, High Crown, and On the Mark 2 projects
On June 5th, 2023, the court-appointed receiver, KSV Advisory, was authorized to begin a court-ordered sale process of the land that several of StateView’s pre-construction home projects were to be built on, among other related assets. Those projects are: Minu Towns; Nao Towns; Nao Towns II; Nashville (Highview); BEA Towns; Elm; and High Crown.
At this time, the appointment of the receiver, and the ongoing court-ordered sale process, have not resulted in the termination or fundamental breach of purchase agreements at the above projects.
The sale process involves the receiver retaining realtors to market the land to maximize value for creditors. Proceeds from the sales will be used, in part, to pay StateView’s creditors, which could include purchasers who paid deposits to StateView for pre-construction homes. Whether there will be any such recoveries and the amounts of such recoveries are uncertain at this time.
As of September 19, 2023, the sale process is not complete and all such sales will require final court approval, which could occur in the Fall of 2023 or later. Once the sale process is complete, and if it becomes certain that purchase agreements are terminated through the court-ordered sale, then Tarion will update this webpage to direct purchasers to an online portal where they can submit a claim in the receivership to attempt to recover their deposits from the sale proceeds.
After making a claim in the receivership, if any purchaser fails to recover their full deposits due to insufficient proceeds from the sale, then the purchaser may submit a Deposit Protection claim to Tarion. You can learn more about the deposit protection offered by Tarion here.
On the Mark project (as distinct from On the Mark 2)
KSV Advisory was appointed receiver of the On the Mark project on June 5th, 2023. The On the Mark project was at an advanced stage of construction at the time of the appointment of the receiver. Consequently, the On the Mark sale process is progressing in a different manner than the other projects for which KSV Advisory is acting as receiver.
On September 14th, 2023, the court approved the sale of the On the Mark project to a company that will offer On the Mark purchasers the option to complete their original purchase agreements under amended terms. Tarion encourages On the Mark purchasers to discuss this option with their real estate lawyer.
Purchasers who do not accept the option to complete their On the Mark purchase agreement may, once termination of their purchase agreement is finalized, submit a deposit protection claim to Tarion by following the steps on this webpage under the heading "How to make a claim".
Deposit Protection from Tarion
Purchasers can have confidence that if purchase agreements are ultimately terminated as part of the court-ordered sale process or by transactions completed thereunder, and deposits are not refunded by StateView through the receivership process, then you will be able to submit a Deposit Protection claim to Tarion. You can learn more about the deposit protection offered by Tarion here.
There may also be a future claims procedure order made in the receivership proceedings, pursuant to which purchasers who paid deposits to StateView for pre-construction homes will be able to file claims.
Owners of Homes Completed by Stateview
Purchasers who have already been given occupancy of a completed home by StateView should continue to submit warranty claim forms (eg. 30-Day, Year-End, Second Year, and Major Structural Defect forms) in the usual course and according to the relevant deadlines.
Homeowners can have confidence that Tarion will process warranty claim forms, schedule and conduct conciliation inspections and backstop StateView’s warranties if the builder is unable to fulfill their warranty commitments.