Tarion Condemns Homes in Mike Holmes Endorsed Development: $8 Million Lawsuit Filed

A housing development in Meaford, Ontario endorsed by celebrity contractor Mike Holmes has come under fire as consumer watchdog Tarion condemned three homes and filed an $8 million lawsuit against parties involved in the project. TerraceWood, a boutique subdivision built by Third Line Homes, was promoted as Holmes Approved Homes and was launched in 2015. However, Tarion found defects in 14 TerraceWood houses, leading to the condemnation of three homes and subsequent demolitions.

The defects discovered in the houses were severe, including improperly installed roofs, water leakage, and major structural issues. Tarion spokesperson Andrew Donnachie explained that the nature of the defects justified demolition rather than repair. Some defendants in the lawsuit dispute the decision to condemn all three homes.

In a surprising revelation, land registry documents revealed that one of Holmes’s companies, M. Holmes Holdings Ltd., had provided Third Line Homes with $390,000 in private mortgages to acquire land for the development. This raised concerns among homeowners who had expected Holmes to intervene and rectify the issues.

Homeowners, including Fayard Johnson, expressed disappointment that Holmes, who had promoted the development and posed in promotional material, did not return to TerraceWood to help resolve the problems. Johnson believed that buying a Holmes Approved Home would guarantee satisfaction, but instead, he and his wife had to endure significant repairs and potential safety risks. Neighbors Andrea Hart and Myles Johnson also faced similar challenges, which resulted in them vacating their home for a year for extensive repairs.

The $8 million lawsuit brought by Tarion names more than a dozen parties associated with the project, including Third Line Homes, the Municipality of Meaford, and The Holmes Group. All parties deny any wrongdoing in their statements of defense. The case is yet to go to trial.

The association of Mike Holmes with the TerraceWood project heavily influenced the decision of many homeowners to purchase a house in the development. The endorsement created an expectation of quality and reliability. However, Tarion alleges that The Holmes Group failed to conduct the necessary house inspections for homeowners and misrepresented Third Line Homes as a competent builder. The Holmes Group denies any involvement with the project and making any representations towards the development’s quality.

The involvement of Mike Holmes and his companies in the TerraceWood development is evident in Ontario land registry records. M. Holmes Holdings Ltd., where Mike Holmes is listed as the president and treasurer, provided mortgages to Third Line Homes amounting to $390,000. Furthermore, another numbered corporation presided by Mike Holmes purchased a TerraceWood property, and this purchase was advertised in TerraceWood ads. The property was eventually sold to a couple in 2017.

The disappointment and frustration among TerraceWood homeowners is palpable, with many feeling let down by Mike Holmes and his endorsement. The ongoing legal battle and the need for extensive repairs have disrupted the lives of these homeowners. They had trusted in the Holmes Approved Homes brand and expected a high level of craftsmanship and quality.