• Builders_HERO

    Builders

Requirements for Purchase Agreements

Your responsibilities in relation to the purchase agreement are as follows:

1. Include an Addendum

The Addendum sets out standard contract provisions related to closing dates and delays. You must include the applicable Addendum with every purchase agreement and complete it in full. 

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, 2021 must attach a new version (dated October 7, 2020) of the applicable Addendum.

There are no substantive changes, but the new Addenda do include small changes to reflect the new regulator (HCRA), such as replacing the reference to Tarion Registration Number with HCRA Licence Number. The new Addenda are available in PDF format here, or in Word format through BuilderLink.

2. Include a 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 by their builder and backed by Tarion, the pre-delivery inspection, and deposit protection.

The Warranty Information Sheet is available in six versions: freehold homes, condominium units, contract homes, condominium conversion units, vacant land condominiums and new homes in a parcel of tied land. The Warranty Information Sheets are available in PDF format here and in Word format on BuilderLink.

Effective February 1, 2021, you are required to attach the applicable version of the Warranty Information Sheet to every purchase agreement or construction contract at the time the document is signed. 

3. (For condominium units) Include a Condominium Information Sheet

If the purchase agreements for a condominium project have an early termination condition that may result in cancellation of the project, then a Condominium Information Sheet must be attached to the purchase agreements.

You are required to complete the Condominium Information Sheet and include it as the first page of the purchase agreement, and the purchaser must sign the document to acknowledge having received and read the document. 

This requirement applies to projects where the first arm’s length purchase agreement in the project was signed on or after January 1, 2020 all purchase agreements in the. For more on this requirement, click here for the HCRA directive.

4. (For condominium units) Provide the Condominium Buyers’ Guide

As of January 1, 2021, you are required to provide Ontario’s Residential Condominium Buyers’ Guide (the Condo Guide) to purchasers of residential pre-construction condominium units. A purchase agreement is not binding until the Condo Guide has been provided to the purchaser.

 The Condo Guide equips prospective purchasers of residential pre-construction 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. 

The Condo Guide is available on the Condominium Authority of Ontario’s website.

5. Submit purchaser contact information to Tarion

Within 30 days after signing a purchase agreement or construction contract, you are required to submit to Tarion, in writing, contact information for the purchaser or owner, including, name, address, and email address.

Tarion will use this information to communicate important information to the purchaser or owner about warranty coverage and the importance of the pre-delivery inspection in the period before possession.

You can submit purchaser information to Tarion by downloading our Excel spreadsheet template. Once the spreadsheet is completed, you can upload it to BuilderLink or email it to purchaserinfo@tarion.com. The spreadsheet is also available for download on BuilderLink.

6. Refer purchasers to Tarion's Learning Hub

The Learning Hub is an online learning tool comprised of interactive modules that provide overviews of specific parts of the new home buying journey and the relevant warranty information.

The Learning Hub includes the substantive warranty process information that was formerly included in a document titled Homeowner Information Package (HIP).

You are encouraged to provide a link to the Learning Hub to purchasers.
 

  

share