Developer Urbancorp has filed for restructuring under the Bankruptcy and Insolvency Act, according to a notice issued by Tarion on its website.
This action is intended to allow the corporation to complete the construction on 1,050 properties over the next two years. Tarion has issued a Notice of Proposal (NOP) to revoke the registration of 17 Urbancorp related companies due to the "builder's failure to meet Tarion's ongoing registration requirements." Urbancorp has filed an appeal to Tarion's NOP with the Licence Appeal Tribunal, and during the appeal process, Urbancorp remains registered under Tarion.
In a statement on its website, Tarion reassured Urbancorp's clients that "it is important for home buyers and homeowners to know that they remain protected under the warranty, and Tarion will step in to fulfill the warranty obligations if Urbancorp fails to do so. This includes deposit protection, delay compensation and construction warranties that can last up to seven years on a new home."
For a list of the Urbancorp companies affected by restructuring, and to read Tarion's statement and FAQ about this issue, click here.