In March, the Home Construction Regulatory Authority (HCRA) participated in the Toronto National Home Show and engaged with over 1,500 consumers to provide educational resources to guide them in their home-buying journey.
We’re coming back to you with answers to the most frequent questions we received during the event.
What is the HCRA and what does it do?
The HCRA licenses and regulates new home builders and sellers in Ontario. Our oversight ensures licensed builders and sellers meet professional standards for competence and conduct, giving home buyers confidence when making one of the biggest purchases of their lives – a new home.
We also protect consumers by providing educational tools and resources to help them make informed decisions. For example, the HCRA hosts the Ontario Builder Directory, which provides background information on 7,000 licensed new home builders and sellers across the province. We also work to support the continuous improvement of Ontario’s new home building industry and provide a process for consumers to report concerns about their builder’s professional conduct, so they are treated fairly, with honesty and integrity.
Does the HCRA license contractors and tradespeople?
No, the HCRA does not license or regulate contractors or tradespeople. The HCRA is responsible for licensing and regulating new home builders and sellers under the New Home Construction Licensing Act, 2017 (NHCLA).
While contractors and tradespeople do not fall under the HCRA’s authority, licensed builders are responsible for ensuring all contractors they employ meet industry standards, comply with the NHCLA, and operate legally and ethically.
Do I need a licence to build my own home?
If you are building the home yourself (and have not hired a builder), a licence may not be required provided that the home is not for sale after construction. This is known as an owner-built home. Owner-built homes are not eligible for warranty coverage under the Ontario New Home Warranties Plan Act. Visit Tarion for more information on warranty coverage.
In any instance where you hire a builder to build your home, even on land you own, that builder must be licensed by the HCRA. If you are unsure, please contact the HCRA by emailing info@hcraontario.ca.
What is a “new” home?
A home may be considered “new” if it meets the following characteristics:
- Is a new dwelling
- Has not been previously occupied
- Is built as a family dwelling used for residential purposes
- Is self-contained – meaning that it provides things like heating and waste management, and spaces for eating and sleeping
- Is affixed to a permanent foundation
- Can be occupied on a year-round basis
Anyone building or selling homes that meet this definition must be licensed by the HCRA. Learn more about what constitutes a new home in our previous blog post.
Do “tiny” homes or laneway houses need to be licensed?
Coach, laneway, and “tiny” homes generally require licensing and warranty coverage. A key factor is whether the home is intended for year-round living, rather than seasonal use. If the home has heating, insulation, electricity, potable water, plumbing, or waste disposal, and provides areas for sleeping and cooking, a licence is typically required before construction. For more details on what qualifies as a new home for licensing and warranty purposes, refer to HCRA Advisory 3 – Common Definition of 'Home'.
Do I need a licence from the HCRA if I plan to rent out a home?
Under the NHCLA, the HCRA regulates new home builders and sellers. Rental properties do not meet the definition of a “new” home and are not subject to HCRA licensing. The same would apply to hotels, motels, and other homes not intended for year-round living (e.g., seasonal homes).
What actions can the HCRA take if a builder is not following the rules?
The HCRA’s Professional Conduct team manages complaints regarding the conduct of new home builders and sellers, including Code of Ethics violations. In these cases, the HCRA can take measures such as mandating training and education courses, issuing financial penalties, laying charges, or suspending or revoking a builder’s licence.
The HCRA takes all complaints seriously. If you have concerns about a builder’s conduct, submit a complaint on our our website.
Ongoing education and engagement
The HCRA is committed to supporting consumers throughout their home-buying journey, and we look forward to connecting with more homebuyers and homeowners at future events.
From May 14-15, join us at TRREB Realtor Quest 2025, Canada’s largest real estate conference and trade show. You can also stay informed by subscribing to the HCRA’s newsletter and following us on Facebook and LinkedIn for updates and resources.
