If Tarion conducts a conciliation and issues a Conciliation Assessment Report finding that at least one item (whether a defect in workmanship or materials, or a delayed closing or occupancy claim) is covered by the warranty, there is a consequence to you called a chargeable conciliation.
This page provides a general overview of chargeability, which is outlined in full detail in Registrar Bulletin 4. For more detail about chargeability as it applies to delayed closing or occupancy claims, refer to Registrar Bulletin 6-F (for freehold homes), Registrar Bulletin 6-C (for condominium units), or Registrar Bulletin 6-P (for homes built on a parcel of tied land).
Note: For information on how the rules surrounding chargeability have been adjusted as part of Tarion’s response to the COVID-19 pandemic, click here.
When Tarion decides that a conciliation is chargeable, two things happen:
- You will pay Tarion a fee for having to conduct the inspection; and,
- Your company’s record on the Ontario Builder Directory (administered by the Home Construction Regulatory Authority) is updated to reflect that you have received a chargeable conciliation. The chargeable conciliation is a measure of your performance and stays on your record for 10 years.
Chargeable Conciliation Fees
Chargeable conciliation fees are $1000 plus applicable taxes for freehold homes and condominium units and $3000 plus applicable taxes for condominium common elements.
Exceptions to Chargeability
Not all conciliations where Tarion finds warranted items are chargeable. A conciliation is “non-chargeable” if you can show that you could/would have complied with your customer service obligations but were unable to do so through no fault of your own.
The following are situations in which a conciliation could be determined to be non-chargeable:
- Denied access: You made reasonable efforts to address the warranted item but the homeowner unreasonably denied access to repair the warranted item(s).
- Reasonable repair refused: You were committed to resolving the warranted item and proposed a reasonable repair. However, the homeowner disagreed with one or more aspects of your plan, such as timing, scope, or method.
- Reasonable cash settlement refused: You tried to the resolve the warranted item through a reasonable offer of monetary compensation which the homeowner did not accept.
- Evidence of prior satisfaction: You decided to take no further action on an item based on documentation indicating that the homeowner was satisfied with a prior repair or resolution.
- Re-introduced item or new issue: You did not have a reasonable opportunity to address the warranted item because: a) it was not described accurately enough by the homeowner (including with regard to your obligation to speak with the homeowner to clarify the issue); b) the item was removed from a homeowner’s list and later re-introduced; or c) in the course of repairing or replacing the item, a new and different defect arises, that you were unaware of, but agree to address at or before the conciliation.
- Shortened or no builder repair period: You were not given reasonable time to address the warranted item either because Tarion decided to abridge the repair period through no fault of your own, or because Tarion failed to provide notice of the claim or conciliation to you.
- Warranty decision overturned by the Licence Appeal Tribunal (LAT): The homeowner’s appeal to the Licence Appeal Tribunal resulted in a reversal of Tarion’s warranty decision.
If you believe that an exception applies to your situation, you must advise Tarion and provide evidence of the exception prior to conciliation. The specific evidence required to support an exception to chargeability is outlined in Registrar Bulletin 4.
Please note that if Tarion determines that an exception applies and the conciliation is not chargeable, you are still responsible in almost all cases for resolving the warranted item(s).