Mike Holmes responds to CBC News story about ‘Holmes Approved Homes’ demolition
For the first time, Mike Holmes has spoken publicly about a lawsuit alleging that homes at a Holmes Approved Homes development in Meaford, Ontario, were built with defects.
The popular contractor and TV presenter posted a statement on his Facebook page four days after the CBC news An update to the lawsuit has been reported. The lawsuit was launched in 2021 by Tarion, a consumer protection organization for new home buyers in Ontario.
Holmes said he was “deeply disappointed” by “news reports” about the lawsuit, and that “some” of the statements his company, Holmes Group, provided to the media “were used, and even taken out of context.”
Holmes said his company was unable to access the project’s homes during construction, so it was unable to “help verify or identify potential problems.”
Holmes also said he continues to stand proud of his record, and that he and his company “will not back down from our mission to help homeowners get it right.”
Tarion’s $8 million lawsuit targets Holmes Group and more than a dozen other parties involved in the development, which is called TerraceWood. The lawsuit alleges that between 2015 and 2019, 14 TerraceWood homes were built with defects, including major structural problems.
The builder, Third Line Homes, failed to fix the defects, so Tarion was paying for all the repairs, Tarion says.
Tarion recently decided that demolition was a more logical option for three of the homes. Two of them have already been demolished.
In her lawsuit, Tarion alleges that the Holmes Group failed to conduct additional inspections of the homeowners it commissioned and misrepresented the builder, Third Line Homes, as competent.
Holmes said in his post that he and the Holmes Group “do not deny that we advertise our inspection services” to homebuyers. However, he says, the company did not inspect any TerraceWood homes, because no one had purchased the “Holmes Certified Homes” inspection package.
Holmes did not explicitly respond to the details in the CBC News report about his endorsement of the “Holmes Approved Homes” project and the participation of two of his other companies. One of those companies purchased and later sold a TerraceWood home with alleged defects, and the other loaned money to Third Line Homes, via private mortgages.
Holmes also did not address comments from homeowners who said they thought they were automatically buying “Holmes Certified Homes” and didn’t know Holmes inspections cost more.
He also did not respond to homeowners who complained that after problems arose at Terracewood, Holmes never returned to help “make it right.”
Allegations of misrepresentation
Holmes said in his post that he was confident that the courts “will provide the appropriate forum to present our compelling evidence.”
He did not say how The Holmes Group would address Tarion’s claims that the company misrepresented Third Line Homes as a “competent, experienced and reliable builder when that was not accurate.”
Paul and Mary Jo Osborne, directors of Third Line Homes, and the Town of Meaford, which inspected the homes, are also defendants in the suit.
Both sides deny any wrongdoing and say Tarion’s decision to condemn three homes was unjustified.
The Osbornes also claim that it was Tarrion who caused problems by excluding Third Line Homes from handling homeowner complaints about defects.