145 homebuyers await the outcomes of a recently approved sale process for the site
On June 5, the Ontario Superior Court of Justice approved a Sale Process Order for StateView’s Elm & Co. lands at 12942 York Durham Line.
KSV Restructuring Inc., the Court-appointed receiver and manager of the property following the developer’s alleged $37 million cheque-kiting scheme, selected Cushman & Wakefield to solicit offers for the site.
While an official date has not yet been announced, the bid deadline for the property is expected between July 19 and July 26, 2023.
The final sale will require court approval, which could happen as soon as this fall.
It is unlikely that the purchaser of the site will be required to assume Elm & Co. homebuyer purchase agreements.
145 homebuyers committed to Elm & Co. units, resulting in total deposits of approximately $16,076,000.
“Proceeds from the sales will be used, in part, to pay StateView’s creditors—which could include purchasers who paid deposits to StateView for pre-construction homes,” a June 21 Tarion update explained. “Whether there will be any such recoveries, and the amounts of such recoveries, are uncertain at this time.”
“Purchasers can have confidence that, if the purchase agreements are ultimately terminated as part of the court-ordered sale process…and your deposits are not refunded by StateView through the receivership process, then you will be able to submit a Deposit Protection claim to Tarion,” the update added.
In a June 13 letter to purchasers, KSV confirmed they are in possession of all post-dated instalment deposit cheques and that they would not be deposited. They also advised purchasers to not remit additional payments.
“Further information regarding your purchase will follow after completion of the sale process approved by the Court in these proceedings,” KSV told buyers in the letter.
