On September 16, the Ontario government announced a formal consultation process to implement pay-on-demand surety bonds as an alternative to Letters of Credit (LOCs) for home builders.

The Ontario Home Builders’ Association (OHBA) recognizes this is a significant and progressive step forward for the housing industry and notes its appreciation for the efforts and commitment of Minister Calandra and the Ministry of Municipal Affairs and Housing to modernize how new housing approvals are administered.

‘Precisely the type of innovative regulatory updates we need to effectively increase our housing supply’

OHBA has advocated for this financial security tool to help home builders access capital for new housing projects for years, as it will streamline the construction of more homes in Ontario. In a release, the organization says it’s proud that its efforts were able to highlight the benefits of surety bonds as an effective tool, and it’s eager to collaborate with municipalities to facilitate its adoption.

“This is a great step forward for Ontario’s housing industry and the issue of housing affordability,” OHBA CEO Scott Andison, who played a significant role in moving the initiative forward and worked closely with Minister Calandra and Municipal staff, says.

“Allowing builders to access capital held up in LOCs and reinvest it into new projects is precisely the type of innovative regulatory updates we need to effectively increase our housing supply.”

What’s next

A key focus for the organization during this consultation will be to ensure that builders currently using LOCs can easily transition to surety bonds, freeing up essential capital for new projects.

As part of the legislative framework established under Bill 109 and Bill 185, the government is exploring regulations to authorize using surety bonds for securing municipal obligations tied to land-use planning approvals.

The consultation is open for 30 days, concluding on October 16, and OHBA will be submitting feedback on behalf of its industry and the 28 local associations across Ontario.

Sotheby’s International Realty Canada recently announced the appointment of Erin Henry as managing broker for the company’s Kingsway (Toronto) and Mississauga offices. This happens as the company continues its expansion across Ontario.

‘Fortunate to have leaders of this calibre who understand strategic growth & human connections that drive our industry’

“Throughout her over 30-year real estate career, Erin has shown an unwavering commitment to professional excellence and to being a source of support and inspiration for those around her,” says Don Kottick, president and CEO of Sotheby’s International Realty Canada.

“She is a very welcome addition to our Ontario management team, which is a beacon of leadership excellence and expertise in Canadian real estate. Beyond their expertise, they are a team that is genuinely passionate about the success of every agent in our network. We are fortunate to have leaders of this calibre who understand the importance of both strategic growth and the human connections that drive our industry forward.”

Henry’s experience and community commitment

Prior to joining Sotheby’s International Realty Canada, Henry was senior managing broker with Royal LePage Real Estate Services Ltd. Brokerage and an award-winning realtor, specializing in residential sales in Central Toronto, West Toronto, Mississauga and Oakville. She shares her expertise as a featured expert realtor and writer for Adamo Nest, Toronto’s condominium living magazine.

Henry also founded The Children’s Charter for Compassion, a global non-profit organization dedicated to teaching kindness and compassion to young people, and co-founded Artistic Bridges, an international initiative encouraging youth to express their dreams and perspectives on world peace through the creative arts.

Glen Muir, broker/owner of Re/Max Preferred Realty in Windsor-Essex County, Ontario, has recently acquired Re/Max Chatham-Kent Realty.

Muir, who founded Re/Max Preferred Realty in 1992, has 46 years of industry experience.

The expansion

The expansion will allow Re/Max Preferred Realty to broaden its presence in the Chatham and Tilbury markets, with the addition of two new office locations and 17 real estate agents. Now, Re/Max Preferred Realty hosts a network of 175 agents across six offices. 

Muir brings his sales team, including managers Denny Laurin, with 33 years of local market expertise, and his son, Gord Muir, with 11 years of industry experience.

Moving forward

Muir remains committed to providing his agents with all the support, tools and resources they need for their continued success at Re/Max. “We are excited about this next chapter of growth and the opportunity it provides us with, to build lasting relationships with clients in these communities,” he shares.

Muir says he looks forward to helping the Re/Max brand secure the Chatham-Kent region’s top market share spot for many years to come.

Recently, the Home Construction Regulatory Authority (HCRA) revoked Mariman Homes’ license to build and sell homes in Ontario. This is the strictest action the authority can take against a licensed builder.

What happened

Due to complaints from purchasers, the HCRA suspended the Hamilton builder’s license last December. An inspection showed it had entered into agreements of purchase and sale for 108 homes without proper authorization and enrollment in Tarion’s warranty program (a requirement to legally build and sell homes in Ontario).

Also, the HCRA discovered that Mariman had allowed its creditors to seek improper price increases from purchasers and failed to hold the deposits it received in trust (as was required under the company’s purchase agreements).

To minimize the impact on purchasers, the HCRA gave Mariman the chance to enroll the homes and prove it could complete construction within the timeframe and price it had committed to. This was done to find a solution that would still allow purchasers to obtain their homes.

Unmet commitments result in revoked license and fines of $400,000

When Mariman was unable to satisfy its commitments, the HCRA revoked its license and ordered it to pay $400,000 in administrative penalties. In the end, the company sold over 100 homes it was not authorized to sell.

“Given these infractions, including a history of financial mismanagement, the HCRA has revoked Mariman’s license to build and sell new homes,” says Wendy Moir, chief executive officer and registrar of the HCRA. “This builder’s past and present conduct raises serious doubts about its ability to operate their business lawfully and with honesty and integrity.”

A ‘textbook example of why builders and sellers must go through the licensing and enrollment process’

Moir stresses, “This is a textbook example of why builders and sellers must go through the licensing and enrollment process. These standards are designed to ensure builders have the competency and financial capability to operate a business before they collect money from purchasers.”

Mariman is currently undergoing receivership proceedings in the Ontario Superior Court of Justice. Tarion is monitoring the situation for any impact on deposit protection coverage for purchasers.

Century 21 Granite Realty Group Inc. recently announced its merger with Century 21 All Seasons Realty. Led by broker Brandon Nimigon, the brokerage has been serving the Haliburton, Ontario area since 2021.

‘A great fit for everyone’

Nimigon started with Century 21 Canada in 2015 as an agent and took over the brokerage in 2021. As for the reason he decided to merge with All Seasons Realty, he sought a brokerage similar in location and culture.

The merged group now operates five offices in Haliburton, Algonquin Highlands, Bancroft and Minden.

“We have similar markets, similar clients and agents with a wide expertise in cottage country,” Nimigon explains. “We’ve already had the chance to work together for years and they’re a close-knit group just like us. Our abutting borders make this merger a great fit for everyone.”

What the future holds

Looking to the future, Nimigon seeks to continue growing the brand’s presence in the area and its culture of collaboration that has been successful for both brokerages.

“This is going to be a great opportunity for all of us to grow our expertise in the area, strengthen our brokerage name throughout cottage country and build a stronger referral network between our two areas,” he says.

Merger will benefit ‘every single agent’ serving Central Ontario communities

Nimigon notes that Century 21 Canada has consistently provided support for their agents and owners, including through technology: “Their online tools are second to none and the personal backing we receive from their corporate head office has always been great. That tied in with one of the strongest brands in real estate is why we all choose C21.”

“We really encourage our brokers to find ways to collaborate and become stronger together,” says Todd Shyiak, executive vice president of Century 21 Canada.

“This merger will lead to a much stronger brand presence in Central Ontario which will benefit every single agent who serves those communities, and of course, Brandon and the leadership team at C21 Granite will have our full support as he brings these two brokerages together.”

QUICK HITS

• In 2016, water pooling along a property line, traced back to a neighbour’s sump pump, contained harmful bacteria like E. coli. The neighbour failed to fix it due to financial constraints and lack of insurance.
• The Ontario Superior Court of Justice case highlighted the severe consequences of neglecting property maintenance, with the plaintiff’s home collapsing due to pooling water, leading to a significant legal battle.
• The neighbour was found liable for strict liability, negligence and nuisance, resulting in the plaintiff being awarded $487,211 for home replacement costs, $18,143.53 for additional expenses, $35,577.99 in pre-judgment interest and $100,000 in legal costs.

Neighbours owe each other a duty of care to avoid causing property damage, yet common sources of damage include water flooding from sump pumps, septic systems or poorly maintained eavestroughs.

The Ontario Superior Court of Justice case Warren v. Gluppe highlights the significant consequences of failing to uphold this duty.

Contaminated water encroaching on property

In 2016 in Prince Edward County, Ontario, the plaintiff noticed water pooling along the property line, traced back to his neighbour’s sump pump. The water contained harmful bacteria like E. coli. Despite acknowledging the issue, the neighbour did not fix it, claiming financial constraints and lack of insurance.

The municipality ordered the neighbour to redirect the sump pump water away from the plaintiff’s property, but the solution failed. By the end of 2016, the pooling water caused the plaintiff’s home to collapse, making it uninhabitable.

The plaintiff sued the neighbour in December 2016. The trial took place in 2023. An engineer testified that the neighbour’s failed attempts to reroute the sump pump water caused the house to collapse. The neighbour’s septic system also violated the Ontario Building Code, contributing to the problem. As well, the plaintiff showed that the neighbour failed to properly maintain his eavestroughs, resulting in further water saturation on this property and putting the property’s foundation at risk.

Neighbour liable for several reasons

The court found the neighbour liable for three reasons:

1. Strict liability (Rylands v. Fletcher): The neighbour’s sump pump and septic system were considered non-natural uses of the land (discharge of water from the basement through faulty pipes along the property), and their failure caused damage, which had nothing to do with “the laws of nature.”

2. Negligence (Alfarano v. Regina): The neighbour did not adequately reroute the sump pump water, maintain the septic system or repair the eavestroughs, all of which posed foreseeable risks to the plaintiff’s property.

3. Nuisance (Antrim Truck Centre Ltd. v. Ontario): The neighbour’s actions substantially and unreasonably interfered with the plaintiff’s use and enjoyment of his property, leading to its collapse and contamination.

The decision

The plaintiff was awarded $487,211 for the replacement cost of his home, $18,143.53 for maintenance, repair, travel and accommodation costs, $35,577.99 in pre-judgment interest and $100,000 in legal costs.

Last week, the Municipal Property Assessment Corporation (MPAC) launched its Property Pulse Dashboard, a new free tool to help homeowners make informed decisions about their property and understand market trends over time.

“We are enhancing the information we provide property owners, allowing them to gain a better understanding of the residential market,” says Greg Martino, vice president and chief valuation and standards officer for MPAC.

“This new tool, along with our recent release of housing inventory data, has been designed with property owners in mind so they can learn more about the changes to the residential property market in communities across Ontario and therefore facilitate more informed decision-making.”

Features of the tool

Using Teranet Inc.’s sales data, the tool is updated monthly and includes the latest residential sales data by municipality and property type. It also offers a “compare” feature to analyze sales information across up to five municipalities simultaneously. Searches can be customized based on sales year/month, the year the property was built and its square footage.

How to access the new dashboard

Property owners can access the dashboard via AboutMyProperty under the Browse My Neighbourhood section. To log in or register, they will need their roll number and access code from their Property Assessment Notice.

After 15 years with Century 21, Gurcharan Garry Bhaura and Sukh Bhaura have opened Re/Max President Realty in Brampton, Ontario, and bring over 200 agents along with them.

With over 24 years in the industry, Garry is currently vice chair of the Canadian Real Estate Association and the former president of the Toronto Regional Real Estate Board. Sukh brings over 20 years of commercial real estate experience and a passion for helping create change and redefining real estate industry standards.

Why Re/Max

The pair moved to Re/Max because of its “unparalleled reputation and global recognition” and the fact they wished to give their agents access to technology that would help give them an advantage in their local real estate market.

“This partnership will propel our business forward, offering unmatched opportunities and support for our team and clients,” says Garry Bhaura, president/broker of Re/Max President Realty. “Together, we are set to achieve remarkable success in our real estate journey … The extensive network and resources offered by Re/Max will be invaluable for our agents.”

On July 1, the Cornerstone Association of Realtors launched. As Ontario’s second-largest real estate board, it brought together almost 9,000 realtors from the Realtors Association of Hamilton-Burlington (RAHB), Mississauga Real Estate Board (MREB), Simcoe & District Real Estate Board (SDREB) and Waterloo Region Association of Realtors (WRAR).

Cornerstone will have offices in Mississauga, Hamilton, Waterloo and Simcoe (Norfolk County) to ensure accessibility and local representation for all members.

‘Enhanced professional development opportunities, best possible tools and services and a unified voice’

Last fall, talks began and RAHB and WRAR announced their intent to pursue amalgamation, with SDREB and MREB following afterward. Memberships of each board approved the amalgamation at separate special general meetings (SGMs) on November 23, 2023, and January 31, 2024.

“This amalgamation represents a pivotal moment in real estate,” says Julie Sergi, chair of the Cornerstone Association of Realtors. “Members will benefit from enhanced professional development opportunities, the best possible tools and services and a unified voice advocating for the interests of realtors and homeowners alike”.

The organization says it sets itself apart by “being a more assertive and aligned voice for realtor members. Joining together magnifies, solidifies and unifies our individual strengths, creating a more influential, capable and member-centric organization.”

“We are excited about the possibilities that lie ahead,” says Bill Duce, CEO of Cornerstone. “Cornerstone will be about listening, being transparent and responding to the evolving needs of our local realtor members.”

Will accept inter-board MLS listings at no charge

Cornerstone acknowledges the amalgamation does not solve the MLS data access issue that realtors are deeply concerned about.

“While we are witnessing a lot of flux in organized real estate,” says Sergi, “Cornerstone is committing to safeguarding and protecting the investment its realtor members have made over many years in creating a strong and stable MLS system. To address some of the data gaps in the short term, we want to be part of the solution, not the problem. We’re excited to share that Cornerstone happily accepts inter-board listings within its market areas at no charge.”

“We strongly believe that all Ontario realtors should have access to all Ontario MLS® information, and we’re open to collaborating with other systems to make this happen,” Sergi adds.

In the meantime, she says the association encourages all realtors to ensure they place any MLS listings on the MLS system for the area of that listing so that local consumers will find them and the realtors who regularly practice in the area can work together for the benefit of sellers and buyers. “This cooperation is the foundation upon which the MLS® System was built.”

Image: Cornerstone.inc

This week, Re/Max announced that Steven Smith, Wes Watson, Dan Porlier and Brad Howard have opened Re/Max Icon Realty, bringing nearly 130 agents to the brand across two Ontario offices, in London and Waterloo.

The group established Davenport Realty in 2018 and grew the brokerage to over 150 agents. Now, they believe the transition to Re/Max will allow them to take their business to the next level by providing their agents with unparalleled opportunities, especially in an ever-changing market.

“We are excited to grow our business under the Re/Max banner,” says Wes Watson. “This will offer us many competitive advantages in our local real estate market, including enhanced brand recognition, access to a comprehensive tech toolbox and an expansive referral network.

The extensive support and resources Re/Max offers will empower our agents to deliver even better service and value to our clients.”.

Re/Max Icon Realty says it looks forward to adding more talent to its roster in the coming months.