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Requirements for Condominium Sale and Construction

If you are proposing to sell or build residential condominiums in Ontario, you must first be licensed by the Home Construction Regulatory Authority (HCRA).

You are not permitted to sell any condominium units until you receive Qualification for Enrollment confirmation from Tarion. For more information on the qualification for enrolment and enrolment process, see our Registrar Bulletins.

All units must be enrolled and you must receive enrollment confirmation from Tarion at least 30 days prior to the start of construction. 

As part of the Application for Qualification for Enrolment and Enrolment you will be required to provide additional documentation and you may be required to complete additional steps to obtain confirmation to commence sales and/or construction. 

As a condominium vendor and/or builder, you may be required to attend an interview with a Tarion representative. If you are planning to build a high-rise condominium project and Part 3 of the Ontario Building Code applies to any element of the project, then you must comply with the design and site review requirements of Registrar Bulletin 19.

All condominium builders are required to complete a Condominium Project Profile Form. The interview requirement (if applicable) as well as additional risk assessment documentation requirements are outlined on the Condominium Project Profile Form. You can request a copy of the form by calling the Underwriting Department at 1-877-696-6497 ext. 3001 or sending an email to: underwriting@tarion.com. 

After you submit the form, and your risk assessment is completed, you will be advised of the security requirements for the project. Security must be posted prior to issuance of a Confirmation of Qualification for Enrolment with Tarion. Receipt of such written confirmation is required before you can enter into purchase agreements and before you take any deposits or payments on account of a purchase price for a home.

For all standard condominiums, security is payable up-front, before commencement of sales and/or construction. Please see Registrar Bulletins 11-L and 11-H for condominium security requirements. 

If you are proposing to build or sell a residential condominium conversion project, please click here for additional registration requirements.

There are four possible attachments to Agreements of Purchase and Sale (APS) signed on or after February 1, 2021:

1. Updated Addendum

To coincide with the launch of the Home Construction Regulatory Authority (HCRA), the addendum was updated. Every new purchase agreement signed on, or after, February 1 must have a new version (dated Oct 7, 2020) attached.

There are no substantive changes, but the new addendums do include small changes to reflect the new regulator (HCRA) including replacing the reference to Tarion Registration number with the HCRA Licence number. The new Addenda are available in PDF format here, and in Word format on BuilderLink, or upon request.

2. Warranty Information Sheet 

The Warranty Information Sheet is a concise overview of a home buyer’s statutory warranty coverage and includes information about the new home warranty (provided to them by their builder and backed by Tarion), the Pre-Delivery Inspection, deposit protection and is available in six versions: freehold, condominium, contract homes, residential condominium conversion, vacant land condominium and new home with a parcel of tied land. The information sheets are available as PDFs here and in Word format on BuilderLink.

Effective February 1, 2021, Builders are required to attach the appropriate version of the Warranty Information Sheet to every purchase agreement or construction contract with an owner at the time the document is signed. This can be achieved by printing a hard copy and physically attaching it to the purchase agreement or construction contract or by including a PDF of the Warranty Information Sheet along with the purchase agreement or construction contract if being sent digitally.

3. Ontario Residential Condominium Buyers Guide 

As of January 1, 2021, Ontario’s Residential Condominium Buyers’ Guide (the Condo Guide) must be provided to buyers of residential pre-construction or new condo units by the declarant (developer) when buyers are purchasing from the developer or person acting on behalf of or for the benefit of the developer. The Condo Guide equips prospective buyers of residential pre-construction or new residential condo units with information on condo ownership and the condo purchase process. Purchasers of resale residential condo units may also wish to review the Condo Guide. 

Under section 73 (2) of the Condo Act, buyers have a 10-day cooling off period in which they may rescind their agreement of purchase and sale. This 10-day period begins on the later of the date on which buyers receive the agreement of purchase and sale, disclosure documents and the Condo Guide. 

Regulations have not been made to specify the manner of delivering or receiving the Condo Guide. Developers may wish to use the same processes and manners in which they currently provide the disclosure statement to provide the Condo Guide (e.g. electronically or in paper format). The Condo Guide is available in its most updated form on the CAO’s website.

4. Condo Information Sheet 

Effective January 1, 2020, all pre-construction APS must have a Condo Information Sheet attached. This condo information sheet must be completed and placed at the front of the agreement of purchase and sale, and purchasers must sign the document to acknowledge having received and read the document. This document is necessary for new condominium projects going forward where the project has conditions that may result in its cancellation. For more on this requirement, click here for the HCRA directive.

Completing Applications Online

If you are registered with BuilderLink, Tarion's online builder service, you can complete your application forms electronically. If you are not registered with BuilderLink, we encourage you to register today. BuilderLink is Tarion's online service for Vendor/Builders. With just a few clicks, you can:

•    Enrol homes;
•    Pay outstanding debt;
•    Manage your credits and debits;
•    View financial transaction history;
•    Update and print the Certificate of Completion and Possession;
•    Review statutory warranty forms and reports;
•    Track repair timelines;
•    Manage inspections; and
•    View service and administrative statistics.
 

  

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