ONTARIO NEW HOME INDUSTRY BIG REGULATORY CHANGES

On February 1st, 2021, The Ontario government established the Home Construction Regulatory Authority (HCRA) to improve consumer protection. 

A new and separate regulator for home builders and vendures has been established to ensure that the industry is held to professional standards. This is to provide greater confidence for buyers and owners of new homes by helping them be well-informed and better protected by:

  • Licensing of new home builders and vendors;
  • Expanding the existing Ontario Builder Directory to provide regulatory compliance and warranty information about builders and vendors across the province; and
  • Implementing a formal complaints process for the conduct of new home builders and vendors. 

WHAT YOU SHOULD KNOW: 

  • The Home Construction Regulatory Authority (HCRA) regulates new home builders and vendors in Ontario.
  • The HCRA is designated under the New Home Construction Licensing Act, 2017.
  • The creation of the HCRA as a separate authority addresses consumer concerns about potential conflicts of interest within Tarion, Ontario’s new home warranty and protection program administrator.
  • The Rebuilding Consumer Confidence Act, 2020, passed on July 14, 2020, promotes higher quality new home construction. It intends to reduce defects and new home warranty and protection claims, while better-protecting consumers from bad actors.
  • Tarion will administer Ontario’s new home warranty and protection program.
  • Together, the HCRA and Tarion will provide more robust consumer protection for Ontarians.  

ADDITIONAL INFORMATION: 

Read Ontario’s Residential Condominium Buyers’ Guide.

Find out about how Tarion protects new homeowners.

Read the New Home Construction Licensing Act, 2017

Read the Rebuilding Consumer Confidence Act, 2020

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