Under the Vendor and Builder Agreements, you are required to communicate to Tarion any circumstance or information that may impact your ability to build or sell homes or carry out your warranty obligations. This includes changes to your company as a result of succession planning or corporate transactions.
Succession Planning and Corporate Transactions
Succession planning and corporate transactions include any situation where there is a change in ownership, corporate structure and/or of the Directors and Officers of your company. Examples include the transfer of the company to a family member or other person, and other transactions such as the acquisition, merger, or amalgamation of your company.
If you are contemplating a succession plan or corporate transaction, you must contact Tarion’s Underwriting department well in advance. The Underwriting department may be reached by telephone at 1-877-982-7466, ext. 3001, or by email at email@example.com.
Tarion will provide you with information about your specific situation and will conduct a revised risk assessment for the new company. The risk assessment will impact the number of homes the new company can build as well as the corresponding security requirements.
If you would like more information about Tarion’s underwriting considerations, please refer to our information guide.
You are also advised to contact the Home Construction Regulatory Authority (HCRA) for more information about the licensing implications of your proposed changes.
Please note that if the HCRA revokes the new company’s licence to sell or build, the new company will not be able to enter into purchase agreements, construction contracts, or to commence construction of homes – even if Tarion previously authorized the company’s plans to sell or build the homes. To do so is a prosecutable offence under the Ontario New Home Warranties Plan Act.