Consumer protection agency Tarion condemned three residences in a housing project supported by celebrity figure Mike Holmes.
A large excavator dismantles a contemporary residence in Meaford, Ont., a charming community nestled along Georgian Bay. Inhabited for only two years, the once spacious interiors, expansive windows, and backyard patio of the home are now reduced to rubble of shattered glass and timber.
“It’s distressing,” remarked Fayard Johnson, a resident from just down the block. “I’m genuinely taken aback to witness my neighbor’s house being demolished.”
Another neighboring house, belonging to Fayard’s next-door neighbor, is also marked for demolition.
These demolitions mark the latest development in the TerraceWood saga, a residential project launched in Meaford in 2015 with great anticipation. The “boutique” collection of homes was constructed by Third Line Homes and endorsed by renowned contractor and beloved TV personality Mike Holmes.
Holmes, widely recognized for his interventions in flawed construction projects, promoted TerraceWood, including through billboards, as “Holmes Approved Homes.”
“Third Line Holmes Approved Homes are constructed with innovation, integrity, and a commitment to rectify any issues,” Holmes stated in a promotional video on YouTube.
However, according to Tarion, Ontario’s organization dedicated to protecting consumers of new homes, things didn’t go as planned. As previously reported by CBC News, Tarion initiated an $8 million lawsuit in 2021 against parties associated with the project, alleging that 14 houses in the TerraceWood development were constructed with flaws.
Now, CBC has acquired information indicating that Tarion has deemed three of these homes unsalvageable. Two have already been demolished, while the third awaits a scheduled demolition date.
“Considering the severity of the identified defects in the properties, demolition was deemed a more practical solution than attempting repairs,” stated Tarion spokesperson Andrew Donnachie in an email. However, some defendants named in the lawsuit argue that condemning all three homes was unjustified.
CBC News has learned two homes in a Meaford, Ont., development promoted by celebrity contractor Mike Holmes have been demolished because of alleged defects. CBC News’s Sophia Harris breaks down what went wrong and Holmes’s company’s response.
CBC News also uncovered property records indicating that one of Holmes’s enterprises extended a total of $390,000 in private mortgages to Third Line Homes, aiding in the acquisition of land for the development.
Several homeowners express disappointment that Holmes, whose mantra is to “make it right”, never revisited TerraceWood to rectify the situation.
“The community has been unsettled,” remarked Fayard, whose TerraceWood residence recently underwent extensive repairs instead of being demolished.
“If [Holmes] had returned to assess the situation and offered assistance in resolving the issues,” he remarked, “I believe it would have been a commendable gesture. After all, these were ‘Holmes Approved Homes.'”
The $8-million lawsuit
Tarion, mandated by the Ontario government, is tasked with ensuring that defects found in newly constructed homes still under warranty are remedied, even if the builder fails to fulfill its warranty obligations.
In its legal action, Tarion asserts that the 14 TerraceWood residences were constructed with deficiencies, such as improperly installed roofs, water infiltration, and significant structural defects posing “serious safety risks.”
Tarion claims that Third Line Homes, the builder, neglected to address these issues, leading Tarion to cover all repair expenses.
The lawsuit names over a dozen entities linked to the project, including principals from Third Line Homes, the Municipality of Meaford, responsible for inspecting the homes, and The Holmes Group, the company owned by Mike Holmes. The defendants deny any wrongdoing in their defense statements.
The case is pending trial.
Fayard Johnson moved into his new TerraceWood house in late 2016. But he says he had to move out of the house for more than year to make way for major structural repairs. (John Lesavage/CBC)
Fayard indicated that Holmes’s involvement with the project played a role in his choice to invest in TerraceWood.
“You tend to trust that if it’s Holmes approved, it’s probably a sound investment,” he remarked.
In 2016, Holmes was photographed in Fayard’s doorway for a promotional image during the construction phase, offering his customary “thumbs-up.”
However, as per Tarion’s legal action, defects were identified in Fayard’s residence.
CBC INVESTIGATES $8M lawsuit alleges defects in Mike ‘Holmes approved homes’
He mentioned that he and his spouse were required to vacate their residence in 2022 for over a year to accommodate extensive structural renovations, including the replacement of an incorrectly sized beam supporting the second floor.
“We were informed of the potential hazards. In fact, during the reinforcement process, we were unable to access the premises at any time,” Fayard recalled.
“It was a highly emotional experience. I mean, before the relocation, during the transition, and adjusting to a different living arrangement… It has significantly impacted our lives, possibly indefinitely.”
In 2016, Mike Holmes gave a thumbs-up at Fayard’s TerraceWood house during construction. The photo was used to help promote the project. (Submitted by Fayard Johnson)
The Holmes Group’s Reaction
Realtor and real estate law expert Varun Sriskanda says the celebrity contractor Mike Holmes should bear some responsibility. (Yanjun Li/CBC)
Upon reviewing documents illustrating Holmes and his companies’ involvement in TerraceWood, CBC News consulted real estate law expert Varun Sriskanda, who was unaffiliated with the development.
“Once you’re providing financial support for the property and the project, you inherently have a stake in its construction,” Sriskanda remarked.
“Additionally, when you’re promoting it and asserting that it’s endorsed by you, you are actively engaged in the process.”
Sriskanda expressed his belief that Mike Holmes carries a degree of accountability.
“He must uphold his commitment and guarantee that these are genuinely Holmes Approved Homes.”
