Adi Development / Nautique (Burlington) — first major HCRA Notice of Proposal; November 2022 LAT settlement: $60K AMP + $2,585,674.58 to 141 purchasers

Claim: Adi Morgan Developments (Lakeshore) Inc. cancelled purchase agreements at the Nautique condo project in Burlington in March 2022, citing a $43M cost escalation (35% over budget); buyers were offered re-purchase at higher prices or deposits back. On August 25, 2022, HCRA issued a Notice of Proposal to revoke the licences of nine Adi entities — the first time it moved to strip an active builder's licences.

On November 30, 2022, Adi settled at the LAT. Adi Lakeshore admitted only to failing to return deposits within 10 days of cancellation, paid a $60,000 penalty to HCRA (the first AMP-style payment), and voluntarily paid $2,585,674.58 in 6% interest to 141 affected purchasers. No findings on obstruction or falsified documents. All current and future Adi-licensed entities operate under conditions for two years.

Source: https://storeys.com/adi-developments-settles-hcra-resume-building-selling-condos/

Confidence: Verified.

Pattern illustrated: the LAT settlement track (the first major test of HCRA's revocation power), and the pre-construction price-hike pattern that drove much of 2022-2025 enforcement (alongside Pinetree, GC King Bond, Briarwood, and Hira).

Buyer Hisham Alsharif told the Globe and Mail his Agreement of Purchase and Sale appeared to have been altered before HCRA reviewed it — a reminder that the LAT settlement track does not always test the full set of allegations.