HCRA LICENCE REFUSAL REMINDS BUILDERS THAT "UNAVOIDABLE DELAY" IS NOT A FREE PASS

Ruling highlights that "unavoidable delay" protections exist to ensure fairness for homebuyers -- not to excuse builder misconduct

TORONTO, Nov. 10, 2025 /CNW/ - The Home Construction Regulatory Authority (HCRA) has refused to renew the licence of The Landing Development Group after finding that the builder improperly invoked "unavoidable delay" due to the COVID-19 pandemic to justify indefinite project delays and withhold purchaser deposits.

The decision, upheld by the Licence Appeal Tribunal (LAT), reinforced that the "unavoidable delay" provision cannot be used indefinitely or as a shield against financial accountability.

The HCRA's investigation found that the builder defaulted on its construction loans for a 137-unit condominium project in Barrie, prompting its creditors to withdraw financing. Despite having no financing to complete the project, the builder retained purchaser deposits and let the project stagnate.

"Citing an 'unavoidable delay' helps builders manage project timelines that are impacted by extraordinary and unforeseeable events outside their control," says Wendy Moir, the HCRA's Chief Executive Officer and Registrar. "In this case, the builder abused this provision, improperly relying on 'unavoidable delay' to mask its financial instability and stall the inevitable cancellation of the condominium project."

In its ruling, the LAT emphasized that any legitimate period of "unavoidable delay" must have a direct connection to the extraordinary event in question. The Tribunal noted that even cost increases following the pandemic were only indirectly related to COVID-19, and therefore, did not justify prolonged delays. The builder's repeated reliance on "unavoidable delay" supported the HCRA's view that it was not financially responsible in conducting its business. As a result, allowing the builder to keep its licence was contrary to the public interest.

Purchasers have since had their deposits returned, and the builder is no longer licensed to build or sell new homes in Ontario. This case serves as a clear reminder that the "unavoidable delay" provision is designed to protect fairness -- not to excuse financial mismanagement.

Before signing a purchase agreement, homebuyers should confirm the builder's licence status by consulting the Ontario Builder Directory. Anyone with concerns about a builder's conduct can also file a complaint through the HCRA's complaints process.

About the HCRA
The Home Construction Regulatory Authority is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders.

In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and hosts the Ontario Builder Directory – the authoritative source of background information about each of Ontario's 7,000 new home builders and sellers.

SOURCE Home Construction Regulatory Authority (HCRA)

Tess Lin, [email protected]