Regulation - Minister

Proposed Code of Ethics and Discipline Committee and Appeals Committee Regulation to be made under the New Home Construction Licensing Act, 2017

Regulation Number(s):
O. Reg. 626/20: GENERAL
Instrument Type:
Regulation - Minister
Bill or Act:
New Home Construction Licensing Act, 2017
Summary of Proposal:
The government is taking steps to establish a separate regulator for new home builders and vendors through the separation of Tarion's warranties and protections administration and its builder and vendor regulation functions. Effective February 1, 2021, the Home Construction Regulatory Authority (HCRA) will be designated as the regulatory authority under the New Home Construction Licensing Act, 2017 (NHCLA). The HCRA will administer the delegated provisions of NHCLA, including the licensing and regulation of new home builders and vendors. Once the HCRA is designated, Tarion will cease to provide the functions transferred to the HCRA, subject to potential exceptions during transition. Tarion will continue to administer new home warranties and protections under the Ontario New Home Warranties Plan Act. This is part of Ontario's commitment to overhaul the Ontario new home warranty and protection program to make it more consumer-focused and to enhance the current single administrator model for warranties and protections delivery.

The proposed regulation, if passed, would establish a code of ethics, a discipline committee and an appeals committee - a framework that would address complaints to better protect consumers and hold licensees accountable for their action. The proposed regulatory changes are expected to take effect on July 1, 2021.

1. Code of Ethics

Some of the requirements in the proposed Code of Ethics could include:

• Treating people honestly and with integrity
• Not engaging in discrimination, harassment or bullying
• Providing reasonable accommodations to those with disabilities
• Ensuring the health and safety of people is protected
• Providing courteous and responsive service while demonstrating knowledge, skill, judgment and competence
• Not engaging in or being a party to misrepresentation
• Ensuring the use of all forms and documents as required by law
• Complying with the laws in every jurisdiction in which the licensee carries on business
• Being truthful and clear in descriptions of features, benefits and prices connected with a new home

2. Discipline Committee

The proposed regulation would include the following matters in relation to the discipline committee:

• Composition of the Committee
• Procedure of Discipline Committee

3. Appeals Committee

The proposed regulation would include the following matters in relation to the appeals committee:

• Composition of the Committee
• Commencement of Appeals

The ministry is also proposing an amendment to the general regulation to improve the information published in the Ontario Builder Directory. The proposed regulatory change is expected to take effect on the date of filing.

The ministry welcomes your feedback and encourages anyone interested to provide comments on this proposal. You may submit your comments to the Regulatory Registry.
Further Information:
Proposal Number:
20-MGCS024
Posting Date:
December 15, 2020
Comments Due Date:
February 13, 2021
Contact Address:
Ministry of Government and Consumer Services, 56 Wellesley St. W., 6th Floor, Toronto ON, M7A 1C1