A Hamilton woman who illegally sold a pre-construction home has been ordered to repay a homebuyer’s $500,000 deposit, plus a victim surcharge.

After putting down the deposit toward a new home, a couple learned the seller wasn’t licensed with the Home Construction Regulatory Authority (HCRA) — which governs licensing and compliance of new home builders in Ontario — and the home wasn’t enrolled with Tarion — which oversees new home warranty claims.

They tried to cancel their agreement with Olga Timykoglou, but she wouldn’t refund their deposit, according to a news release from HCRA. 

New home builders and sellers in Ontario are legally required to register with HCRA and Tarion, which are in place to protect homebuyers from the “financial risks” of working with someone operating “outside the law,” HCRA’s CEO Wendy Moir said in the release.

Once the couple reported Timykoglou to HCRA, its investigators reviewed evidence and charged Timykoglou with two Provincial Offences Act charges for illegal selling, the release said.

Timykoglou pleaded guilty to both charges in June and was ordered to repay the full $500,000 deposit, plus fines and victim surcharges totalling $12,500, it said.

The matter is also being challenged in civil court, with Timykoglou alleging the buyers knew from the start the home wasn’t registered with Tarion. She is seeking $3.2 million in damages as a result of the failed sale and regulatory proceedings against her, according to court documents seen by The Spectator.

Timykoglou could not be reached for comment. 

While the HCRA can’t say “with certainty” how often people enter agreements with unlicensed builders or sellers, the regulation authority received 314 complaints in 2024-25 related to illegal activity, it told The Spectator.

The incident serves as a cautionary reminder to check the Ontario Builder Directory to ensure a builder or seller is licensed before handing over money on a new home.

“Buying a new home is one of the biggest financial decisions most people will ever make, so it’s crucial to know who you’re dealing with,” said Moir.

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