Regulatory Authorities 101: Safeguarding Consumers

Regulatory authorities play a pivotal role in protecting the public and enforcing standards across several industries. Without this oversight, consumer rights could be neglected with little recourse to address their concerns.

In this edition of The Home Front, we’ll dive into the role The Home Construction Regulatory Authority (HCRA) plays in protecting new home buyers and upholding industry standards.

What is a Regulatory Authority?

Regulatory authorities are public organizations with the power to monitor and regulate professional standards and ethics across various industries. Their main responsibility is protecting the public and consumer rights. They also enforce consumer protection laws, manage public complaints, and investigate alleged violations.

In Ontario, there are several regulatory authorities under the province’s Consumer Protection program that enforce consumer protection and public safety laws, from retirement homes to real estate agents to the winemaking industry – including the HCRA which regulates new home builders and sellers.

Protecting new home buyers in Ontario

The HCRA licenses the people and companies building and selling new homes in Ontario. What does having a licence mean? For one thing, it’s the law. Building or selling a new home in Ontario without a licence from the HCRA is illegal. Just as you expect an electrician to have a licence proving their expertise, licensed builders must have the necessary skills to construct homes and renew their license annually. In addition to licensing, the HCRA provides resources to new home buyers so they can make informed decisions as they navigate the market.

Below are some of the HCRA’s key responsibilities as part of the homebuilding industry:

Licensing

A licence gives consumers assurance that the builder they hire has met competency and conduct standards. There are seven core competencies that are prerequisites for getting a licence.

Licensed builders are required to act with honesty and integrity. The HCRA also reviews builders' professional conduct before granting a licence, including any history of complaints to decide what risk they would pose to the public if they were licensed. This includes reviewing anyone who may be involved in their business who may act illegally or unethically.

The HCRA strongly advises against hiring unlicensed builders to build your home and will take enforcement action against illegal building and selling to protect the public.

Professional conduct and complaints

Once licensed, builders are subject to a rigorous Code of Ethics which sets out how licensed builders and sellers are expected to operate. The HCRA enforces the Code and manages complaints about builders’ professional conduct. As a new home buyer, you should expect your licensed builder to:

• Treat you fairly, honestly and with integrity
• Not engage in discrimination, misrepresentation, intimidation, or bullying
• Not stop you from filing a complaint
• Provide a level of courteous, communicative, and responsive service

If you have a concern about your builder’s conduct, submit a complaint to the HCRA. You have a right to voice your concerns, and it’s our job to listen and investigate further.

Informing consumers

The HCRA provides educational resources to support consumer protection and awareness. One resource is the Ontario Builder Directory, which provides information on nearly 7,000 licensed builders and sellers in Ontario, including their licensing status, the number of years they’ve been active, the number of homes they’ve built, and any conduct concerns, including charges or convictions against the builder.

The Builder Directory is an important first step for any new home buyer to see if their builder is properly licensed. The HCRA also offers a newsletter to provide updates about new home builders and sellers - sign up today!

Keeping you informed

The homebuilding landscape can be difficult to navigate. With lots of decisions to make, it’s important to stay informed. As a regulatory authority, the HCRA is here to protect homebuyers and uphold industry standards. Always remember – only hire licensed builders by checking the Builder Directory and if you have concerns or questions, don’t hesitate to contact us.

After all, we’re considered an "authority” for a good reason.