June 6, 2023
Tarion is closely monitoring 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.
Tarion will update this notice from time to time.
Purchasers of StateView’s Pre-Construction Homes
While several of the builders within the StateView group are in receivership, at this time the appointment of the receiver has not resulted in the termination or fundamental breach of purchase agreements.
On June 5th, 2023 the receiver 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.
The sales process involves the receiver retaining realtors to market the land to maximize value for creditors. If sufficient, 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.
Any sale of land will require final court approval, which could occur in the Fall of 2023 or later depending on the final timelines under the court-ordered sale process.
The On The Mark projects, one of which is mid-construction, are not part of the sale process at this time. We understand that the receiver is considering whether it is feasible to complete the On The Mark project that is currently mid-construction.
When Can I Submit a Deposit Protection Claim to Tarion?
Until the court approves sale transactions under the sale process, it is uncertain what will happen with StateView’s existing purchase agreements. This uncertainty may continue into the Fall of 2023 or later depending on the final timelines under the court-ordered sale process.
Purchasers can have confidence that, if the purchase agreements are ultimately terminated as part of the court-ordered sale process or by transactions completed thereunder, and your 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.
We encourage you to speak with your real estate lawyer if you have questions about the StateView situation and receivership process. Information about the receivership is available on the receiver’s website.
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.