Expectations for Your Builder

Your Builder Must Be Licensed

Building a new home in Ontario without a licence is illegal.
Your new home is likely your biggest financial asset – and it should be protected with care. The Home Construction Regulatory Authority protects home buyers by ensuring that all new home builders and vendors in Ontario act with honesty and integrity, have the technical skills to build homes, the financial responsibility to run a home building operation, and competent knowledge and capacity to offer you warranty protection on your new home.
Illegal Building

How do you know if the builder you are considering working with is licensed?

What Are the Risks to Working with an Illegal Builder?

1. Structural Defects & Poor Craftsmanship
   If the builder is not licensed, they have not proven that they have the technical and competency skills to build homes. It could also mean that the home is poorly built and does not meet the province’s Building Code specifications. It might even be a hazard to live in.
   Learn more about the HCRA’s competency requirements.
2. Liability Issues
   An illegal builder would not be bound to the Code of Ethics and responsibilities under the New Home Construction Licensing Act. As a home buyer, you could be at risk of working with dishonest individuals with poor conduct and as a result, you may face labour, civil and/or other liabilities.
3. Financial Exposure
   If a builder has not proven that they have the financial responsibility or even have the necessary insurance coverage in place, your investment could be at risk.
4. Limited Warranty Protection
   The home will not be enrolled with Tarion and this means that you may miss out on important warranty protections that you are entitled to as a new home purchaser.

What Can You Do To Protect Yourself from an Illegal Builder?

1. Do your research
   The first and most important way to protect yourself from an illegal builder is to ensure that your builder is licensed by the Home Construction Regulatory Authority.

   • Search the builder on the Ontario Builder Directory to confirm that they are licensed to build and sell new homes.
   • If you cannot find the builder in your online search of the directory, call the Home Construction Regulatory Authority call centre at (416) 487-HCRA (4272) to verify that the builder is licensed.
   • Ask your builder to produce evidence that they are licensed by the Home Construction Regulatory Authority.
2. Know the right questions to ask your builder
   If your builder tells you things like “You can save money by not going through Tarion”, or “I have my own warranty”, or “I am a special type of builder so I don’t need a licence” or any other reason that they say allows them to build without a licence or does not require them to enrol the home with Tarion, you should be wary. Illegal building is a serious offence. Fines of up to $50,000 can be imposed by Ontario Courts on illegal builders. In addition, convicted offenders may be imprisoned for up to two years. To protect yourself, keep asking questions until you have a full understanding of why your builder cannot prove that they have a licence. If you have any further doubts or questions about whether your builder is licensed, call the HCRA at (416) 487-HCRA (4272) or send an email to complaints@hcraontario.ca.
3. Understand your warranty
   Mandatory warranty coverage is provided for new homes and condominiums in Ontario. It starts with deposit protection and delayed closing compensation, and includes three separate warranties that last up to seven years after you take possession of your new home. For more information about warranty protection, please visit the Tarion website or call Tarion’s customer service team at 1-877-9-TARION (1-877-982-7466).
4. Confirm that your home is enrolled with Tarion
   If your builder does not provide you with a Warranty Coverage for New Homes in Ontario brochure before your Pre-delivery Inspection

   Builders are required to conduct an inspection of your new home before you take possession of your new home or occupancy of your condominium unit. It allows home buyers to identify any item that is damaged, incomplete, missing or not operating properly.

   Click the link to view our full Glossary.

   , ask for one, and confirm that your new home is enrolled with Tarion. For your information, you may download the brochure for freehold & contract homes and condominium units on Tarion’s website.
   If your builder says the home does not have to be enrolled, or they have their own separate warranty instead, please contact HCRA at 1-800-582-7994 or complaints@hcraontario.ca. There is only one mandatory new home warranty in Ontario, and it is not an option – it is the law. For more information about warranty protection, please visit Tarion or call a Tarion representative at 1-877-9-TARION (1-877-982-7466).

Your Builder Must Act Professionally

As the regulator of home builders in Ontario, the Home Construction Regulatory Authority has clear expectations for the professionalism of builders that is set out in government regulation and the HCRA's Directives and Advisories.

When working with a licensed builder, what does professional conduct look like?

You should expect a level of professionalism that inspires trust and confidence. Taking into account the legal warranties, your relationship with your builder could last up to seven years, so it is important that the relationship is good and that you can trust them. Through the Home Construction Regulatory Authority’s licensing process, a builder’s past and present conduct is assessed thoroughly before they are issued a licence to build and sell new homes.

The HCRA has published A Guide to Good Conduct for Home Builders and Vendors to help licensees and applicants for a licence understand the HCRA’s approach to assessing the good conduct expected of all new home builders and vendors. This document sets out what the expectations of good conduct for licensees. The following are general expectations of good conduct:

• Comply with the NHCLA and its regulations. This includes an obligation to comply with the Ontario Building Code Act and regulations, and the Ontario New Home Warranties Plan Act.
• Treat people fairly, honestly and with integrity.
• Honour their new home warranty obligations.
• Not engage in or be a party to misrepresentation or false or misleading advertising.
• Not engage in behaviour that is harassing, bullying or discriminatory.
• Provide reasonable accommodation for persons with disabilities.
• Maintain required privacy and confidentiality of personal information and not disclose personal information without consent or as required by law.
• Not participate in or facilitate the building or selling of new homes in Ontario by someone who was required to be licensed as a builder or vendor or required to obtain confirmation of enrolment by Tarion, but failed to do so.
• Avoid conduct that would reasonably be regarded as being disgraceful, dishonourable, unprofessional, unbecoming a licensee or likely to bring the new home construction and sales sector profession into disrepute.