Consultation on Illegal Building and Related Improvements to Protect Buyers of New Homes
Bill or Act:
The Ontario New Home Warranties Plan Act, New Home Construction Licensing Act, 2017
Summary of Proposal:
The Ministry of Government and Consumer Services is seeking public input about illegal building and related improvements to protect buyers of new homes.
When a person illegally builds a new home, that person violates requirements in two laws that provide protections for the buyers of new homes: the New Home Construction Licensing Act, 2017 (Licensing Act) and the Ontario New Home Warranties Plan Act (Warranties Act).
The Home Construction Regulatory Authority (HCRA) is responsible for administering the Licensing Act. The Licensing Act regulates builders and vendors of new homes (i.e., those who typically build and sell new homes). Among its responsibilities, the HCRA issues licences to builders and vendors that permit them to build and sell new homes, and investigates builders and vendors for illegal building.
The Warranties Act requires that all vendors of new homes provide certain warranties to the buyers of those homes. Tarion is responsible for administering the Warranties Act. The Warranties Act also creates rights to compensation for buyers from Tarion if a vendor of a new home fails to fulfill its warranties.
Builders and vendors are not the only people who build and, eventually sell, homes. A person may also build a home on their own land to live in it, rather than to sell it. Sometimes that person may also sell the home they have built for themselves due to changing life circumstances, such as the loss of a job or an illness in the family. Generally, people that build homes for themselves do not have obligations under the laws above. Some of the proposals discussed in the paper linked below are intended to address the ways in which some people might exploit this exception to the rules. However, the purpose of this consultation is to discuss ways that protections for the buyers of new homes can be maximized while respecting the ability of a person to build a home for themselves.
This consultation is intended to seek the views of the public, including anyone with experience, involvement or interest in building or purchasing a new home.
You may submit your comments through the Regulatory Registry or via email to NewHomes@ontario.ca by the deadline of May 2, 2022.
Analysis of Regulatory Impact:
The ministry is seeking stakeholder and public input to learn about and determine any new, direct, administrative or indirect costs, savings or other consequences for consumers and businesses, including contractors and tradespeople, related to proposals to address illegal building or proposals to make related improvements to protect buyers of new homes.
April 11, 2022
Comments Due Date:
May 2, 2022
Ministry of Government and Consumer Services, 56 Wellesley St. W., 6th Floor, Toronto ON, M7A 1C1
Consultation until May 2, 2022