It is illegal for a builder to enter into an Agreement of Purchase and Sale or construction contract with a purchaser if the builder is not registered with Tarion. It is also illegal to begin construction of a home or condominium without first enrolling it with Tarion. Offenders will be charged by Tarion under the Ontario New Home Warranties Plan Act.
Tarion employs a team of seasoned investigators to uncover builders and vendors in Ontario who fail to register and/or to enrol new homes with Tarion. Under the Act, fines of up to $100,000 can be imposed by Ontario Courts. In addition, convicted offenders may be imprisoned for up to one year or placed on probation.
How to Report Illegal Building
If you suspect illegal building may be taking place, or have concerns related to builder conduct, please call Tarion's Compliance and Investigations team, toll-free, at 1-877-982-7466 ext. 3833. This number may also be used for inquiries regarding whether a specific home is enrolled and/or eligible for warranty coverage.
Illegal Building and Warranty Repair Timelines
Where an illegal vendor is taking steps to comply with the legislation and warranty items are being resolved, warranty repair periods may not need to be changed. However, Tarion may at its discretion abridge an illegal vendor's repair periods if the vendor is unwilling to resolve warranty claim items and/or the claim involves extraordinary circumstances.
The Ontario Builder Directory
When thinking about buying a home, it’s important to do your research. Tarion’s Ontario Builder Directory gives you access to more information to help you make an informed decision. The conviction search shows if a company or individual has been convicted under the Ontario New Home Warranties Plan Act within the past 10 years. This would include builders who aren’t licensed to build or sell homes and those that haven’t registered the houses they’re building with the Ontario new home warranty program.
A scrolling list of the latest advisories issued by Tarion can also be found on its Ontario Builder Directory landing page. It includes the most recent condominium project cancellations, convictions under the Ontario New Home Warranties Plan Act, and companies whose registration has been refused or revoked.