Protect your investment: a homebuyer's guide from the HCRA

Buying a new home is a major investment and a significant milestone — it’s often one of the biggest decisions of your life. As with any major purchase, preparation is key to a positive experience. That’s where the Home Construction Regulatory Authority (HCRA) is a helpful resource.

The HCRA oversees Ontario’s new home builders and sellers, supporting you to make informed decisions throughout the home-buying process.

One of Ontario’s newest regulators, the HCRA is dedicated to protecting homebuyers. How? By making sure all home builders in the province are licensed and regulated. In fact, constructing or selling a new home in Ontario without an HCRA licence is against the law. This licence is not just a piece of paper, it shows that the builder has met the competency and conduct standards required to operate a homebuilding business.

Before you sign on the dotted line

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Buying a new home is an exciting decision, but don’t let the thrill cloud your judgment. Here are some steps to being well-prepared before committing:

Research, Research, Research. Do your homework before choosing a builder. Research is essential in understanding the services builders offer and clear expectations for the final product. You can confirm the builder is licensed through the HCRA’s Ontario Builder Directory, a one-stop shop for information on licensed builders (including the number of homes they’ve built, years in operation, and any conduct concerns). This helps you choose a licensed builder you can trust.

Understand expectations for home builders. Builders are required to act with transparency and integrity. The HCRA sets clear and rigorous standards that licensees must follow through a Code of Ethics and regulates builder conduct. These principles set out how licensed builders and sellers are expected to operate and a roadmap for consumers to understand the standards builders must meet. The Code of Ethics spans financial responsibility, compliance with the law, health, and safety protection and more. To learn more, read the full Code of Ethics on the HCRA’s website.

Don’t rush to the finish line. Once you are ready to make a purchase and have decided on a builder, the next step is to review and sign the Agreement of Purchase and Sale. The HCRA strongly recommends getting a lawyer to review this document, which outlines the terms of your purchase. Additionally, be sure to review the Addendum to the agreement, which details closing timelines, potential delays, and cancellation policies. Take your time to understand all the expectations, warranties, and protections in these documents, and don’t hesitate to seek legal advice or request more time to review the contract from the builder.

The HCRA: your partner in confidence

The HCRA goes beyond licensing builders. It offers consumers educational resources and an avenue to address concerns about your builder’s professional conduct.

One useful resource is the HCRA’s New Home Buyer Dashboard, which provides you with steps on what to expect during the home-buying process. From selection of a builder that is properly licensed to builder requirements before you take possession, to warranty coverage of your new home. This dashboard details tips and clarifies conduct expectations that every builder must follow each step of the way.

The HCRA’s website also outlines your rights as a homebuyer, helping you make informed decisions. For example, as the purchaser you have the right to be informed of delays and have them documented.

Hopefully, there will be no problems along the way, but the HCRA recognizes that concerns may arise during the home-buying process. There are a range of dispute resolution options available to purchasers, from making warranty claims with your builder and Tarion for apparent defects to litigation in more serious cases. The HCRA’s professional conduct team reviews complaints about a licensed builder’s behaviour and has several tools to educate and discipline licensed builders found to have violated professional conduct expectations.

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The HCRA has the authority to investigate complaints regarding appropriate licensing, conduct, competency, and reasonable financial responsibility of builders. The HCRA takes every complaint seriously and relies on your participation to address violations of rules for the benefit of all consumers.

The HCRA’s complaints process operates on two fundamental principles: giving consumers a clear path to voice their concerns and ensuring a fair review process. The HCRA will conduct a thorough review of all relevant facts, which may involve reaching out to additional stakeholders, such as building officials, conducting interviews, and gathering further documentation to complete a detailed assessment. Although this kind of thoroughness can take time, it leads to better and more informed outcomes.

HCRA Tip: Maintain a paper trail of all communication and documents throughout the home-buying process. This will help you if a dispute arises that you need to address, or if you wish to make a complaint about your licensed builder’s conduct to the HCRA.

Key considerations for pre-construction condos

Pre-construction condos continue to be a growing and popular option for homebuyers. The process of purchasing a pre-construction condominium differs slightly from that of a home, including additional considerations of which you should be aware. You can still use the Ontario Builder Directory for your research and to ensure the builder is licensed.

Building a condominium takes time and unforeseen circumstances may arise. Be prepared for contingencies such as potential construction delays, tentative occupancy dates, and review your purchase agreement carefully to understand how your timeline to move in might be affected. That being said, builders must communicate with purchasers and provide advance notice any time a delay occurs.

As with any new build, there is a risk of the project being cancelled in which case you are entitled to the return of your deposit. By law, all new homes and condos built in Ontario come with deposit protection and a builder’s warranty. Tarion is the organization that administers the province’s warranty protection program and that buyers receive the coverage they are entitled to. For more warranty information in the event of a delay or cancellation, visit Tarion’s website to understand what is covered.

The HCRA also strongly advises reviewing your purchase agreement carefully with a legal professional to understand the details, such as final specifications of the unit and maintenance expenses associated with the condo. Keep in mind you have a 10-day period to cancel your purchase after signing. Heads-up to buyers — builders must include a Condominium Information Sheet in your agreement outlining potential risks of buying a pre-construction, so you stay informed.

Take ownership with confidence

Buying a home is an exciting time that can be complex to navigate. By keeping yourself educated, choosing a reputable builder, and understanding your rights, you can take the leap with confidence. The HCRA is here to empower you every step of the way.