TARION & HCRA

Learn More about what roles TARION and HCRA play in the New Construction Builder Real Estate Industry

Prior to 2021, TARION issued licenses to Builders and also handled the Warranty Program.  In 2021, the Home Construction Regulatory Authority (HCRA) was formed and they now are responsible for the licensing of all Ontario Home Builders.

It is important to note that ALL New Home / Condo Builders in Ontario must be licensed - even custom home builders.  As such, the Builder will list their HCRA # within the Agreement of Purchase and Sale (also referred to as the APS) as part of the TARION documents.   More detailed information on HCRA's role as well as their Builder Directory can be found on the HCRA website.

TARION is best known for their administration of the Builder's Warranty Programs but they actually provide other services and protections to Purchasers starting from the time the APS is signed to 7 years after your closing date!  See below for the key features of TARION:

>> Deposit Protection
When you purchase from a Builder, you will pay them a deposit.  A certain amount of this deposit is protected by TARION in the case of a Builder going bankrupt, etc.  The amount of protection varies based on the purchase price as well as whether you are purchasing a Freehold or a Condo Property.  Our GTABuyersAgent.com Realtors will explain everything you need to know about your deposit and of course more details can be found on Tarion's Website.

>> Closing /Occupancy Delays & Compensation Rules
Within your APS, the builder will include the standard form provided by TARION called the "Statement of Critical Dates".  This document details your closing/occupancy dates as well as the potential delayed closing dates and notification dates.  If the builder does not notify you within the required amount of time or delays your possession date beyond certain dates in the contract, then you may be entitled to compensation up to $7,500.  Your GTABuyersAgent.com Realtor will explain the entire TARION program and closing dates to you.

>> Warranty Program
All New Builds come with a standard TARION warranty that covers various things from 1 to 7 years.  Prior to your closing/occupancy date, you will get a notification from the builder to attend what is called a PDI or Pre-Delivery Inspection.  At that time, you will walk through your new purchase with a member of the Builder's team to establish any errors or deficiencies with the property that the Builder will be required to fix under the warranty program.  These will be noted on paperwork you will sign.  Once you take possession of the property, you may add to this list of deficiencies when you fill out what's called your 30 day form.  You will also complete a Year end form and a 2 year form.  

More detailed information can be on TARION's website.