Kings Custom Homes, owner convicted of illegal building

Peterborough area builder Kings Custom Homes Inc. and owner Corey Savary have been convicted of illegal building for failing to enrol a home in Douro-Dummer Township.

Savary and the company were fined

$76,625 by the Ontario Court of Justice, according to a release from Tarion, the province’s home warranty program.

The conviction comes on the heels of a Tarion investigation into both Kings Custom Homes and Savary that began in January 2017.

Tarion initially received a complaint from a realtor regarding the home which was listed for sale. The purchasers had made $40,000 in deposits, but the home was not enrolled in the new home warranty program, according to Tarion.

Tarion’s determined Kings Custom Homes had collected more than $1.1 million in deposits after entering into 29 agreements of purchase and sale for homes that were never built.

Under the Ontario New Home Warranties Act, each purchaser was eligible for a maximum of $40,000 in deposit protection. Tarion has subsequently paid out $360,000 in deposit claims to date.

In March, Tarion revoked the registration of Kings Custom Homes Inc, which means the company and Mr. Savary are no longer allowed to build new homes in Ontario.