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How to Becomea New Home BuilderA guide to becoming a registeredhome builder in Ontario
About TarionFor more than 40 years,Tarion has provided new homewarranty protection to overtwo million Ontario homes.Tarion works hard every day to serve the publicinterest by, first and foremost, protecting consumersand their new home purchases.We regulate new home builders and ensurethey meet a province wide standard of technicalcompetence and financial capacity. We investigatehomeowner warranty claims; resolve warrantydisputes between homeowners and builders; providedeposit and delayed closing protection for newhome buyers; and prosecute illegal builders. We alsomanage the Guarantee Fund, an important financialreserve designed to help shield Ontario consumersfrom possible catastrophic building events.All of this enhances fairness and confidence inOntario’s new home building industry.
Who Needs to Register?Anyone planning to build and/orsell a new home in Ontario mustbe registered with Tarion. Theymust also enrol the home(s) inthe statutory warranty program.Registration Options:You can choose to register with Tarion as a builder,vendor, or both. A builder is defined as someone who undertakesthe performance of all the work and the supplyof all the material necessary to constructa completed home whether for the purposeof sale by the person or under a contract witha vendor or owner; A vendor is defined as someone who sells on theirown behalf a home (not previously occupied) toan owner. This includes a builder who constructs ahome under a contract with the owner.Accessibility at TarionTarion is committed to providing an inclusive andaccessible environment in which all members of thepublic have equal access to its services and are treatedwith dignity and respect. If you require accommodation,please visit Tarion.com or contact us at 1-877-982-7466for assistance.How to Become a New Home Builder 1
Registration RequirementsResidential freehold and low rise condominiumconstruction under Part 9 of the OntarioBuilding Code:Prior to registration:Completion of seven educational competencies.During registration assessment:A business interview with a Tarion representative.Residential high rise condominium constructionunder Part 3 of the Ontario Building Code: In addition to attending a mandatory orientationsession and business interview with a Tarionrepresentative, residential high rise condominiumconstruction is subject to further auditingrequirements and inspections during thebuilding process.More information about registration requirementscan be found on Tarion.com.Residential condominium conversion projects: In addition to the other registration requirementsfor condominium construction, vendors andbuilders of a residential condominium conversionproject must provide the Property AssessmentReport, Capital Replacement Plan andPre-Existing Elements Fund Study before anysales of units or commencement of construction,as required by Builder Bulletin 51.2 Tarion.com
Education RequirementsPrior to proposing to build residential freeholdand low rise condominium construction under Part 9of the Ontario Building Code you are required tocomplete seven educational competencies inaddition to Tarion’s existing registration requirements.The educational requirements are based on theCanadian Home Builders’ Association’s NationalEducation Benchmarks for residential construction.Each core competency must be held by one or sharedby several Directors or Officers (DO) of the companyor Principals of a sole proprietorship/partnership.If you are applying as a Builder or Vendor/Builder,all 7 core competencies are required to register.If you are applying as a vendor only, five (5) corecompetencies are required; Building Codes andConstruction Technology are excluded. Please note,you must have a registered builder to ‘build’ for you.The competencies include:1. Business Planning and Management2. Financial Planning and Management3. Project Management and Supervision4. Legal Issues in Housing5. Building Codes in Ontario*6. Construction Technology *7. Customer Service and Tarion Requirements* N ew vendor only applicants are not required to complete theBuilding Code in Ontario or Construction Technology competenciesEducation ProvidersFor a current list of course formats and educationproviders, please visit the Becoming a RegisteredBuilder section on Tarion.com.How to Become a New Home Builder 3
Education Requirements:Assessing Current Competenciesand Applying for ExemptionsIf you believe you already have certain competenciesand wish to be tested on these competenciesinstead of taking a course, you may register to writean assessment exam through Algonquin College.In some cases, Tarion may consider exemptions forsome of the education requirements based on anapplicant’s prior experience and education. Pleasevisit the Becoming a Registered Builder section ofTarion.com to learn more.Exemptions will be considered for thefollowing categories: Applicants who were Principals, Officers,or Directors for five or more years witha registered builder; Applicants who were employees engaged inthe customer service, construction or businessmanagement of a registered builder and whohave five or more years in that capacity; Applicants who have obtained comparablecore competencies with another Canadianwarranty program; Applicants who have achieved a professionaldesignation or obtained formal educationin an area related to an area of competency; Applicants who have achieved Ministry of MunicipalAffairs and Housing recognition for competencyin Part 9 of the Ontario Building Code.Tarion will evaluate exemption requests on a caseby case basis. If you think your experience andprofessional qualification may be eligible for anexemption, please complete the EquivalencyRequest Form and provide all supportingdocumentation you wish to be considered in ourdecision-making process to L&U@tarion.com.4 Tarion.com
Completing the ApplicationTarion is established as an underwriter to theindustry and as such, needs to fully understand yourbusiness proposal and your plans for its success.New applicants must prepare and submit applicableinformation so Tarion may complete your applicationreview effectively and efficiently.An incomplete application package will resultin a delay in your registration process.Based on the type of organization you are applyingas, please refer to the Application for Registrationpackage to understand which document appliesto you.Complete sections A to O on the Applicationfor Registration form and include all applicableinformation and provide a 2,500 application feepayable to Tarion.We encourage you to submit your applicationelectronically via Tarion.com, where you cancomplete, pay and submit your application online.Along with yourApplication forRegistration there is 2,500 application fee(tax exempt) payableto Tarion.** Umbrella applicants please contact Licensing & Underwritingat 1-877-696-6497 or 416-229-3844 ext. 30016 Tarion.com
Once you have submitted your applicationonline: sign up for Tarion’s web-based portal,BuilderLinkThrough BuilderLink youcan track the status of yourapplication and acceptyour terms and conditionsif approval is granted.As part of your application process, you shouldfamiliarize yourself with the Ontario New HomeWarranties Plan Act and Builder Bulletins onTarion.com, as they form part of the terms andconditions you will need to adhere to if yourregistration is approved.As part of your applicationprocess, you shouldfamiliarize yourself withthe Builder Bulletinson Tarion.com.How to Become a New Home Builder 7
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Business Interviewand Information SessionAfter you have submitted an application andmet the registration requirements, Tarion willcontact you to attend a mandatory businessinterview and information session to successfullycomplete your registration.The purpose of the business interview andinformation session is to:Establish an understanding of Tarion’sexpectations;Evaluate your planned business ventureand your background;Review your responsibilities, timelinesand customer service standard you areexpected to meet.You will be scheduled toattend a business interviewand be required to submitinformation to successfullycomplete your registration.How to Become a New Home Builder 9
Additional Registration Requirementsfor Condominium ConstructionIf you are building residential condominiums inOntario, you must attend an interview with a Tarionrepresentative after submitting your applicationfor registration.If you are planning to build a high rise condominiumproject and Part 3 of the Ontario Building Codeapplies to any element of the project, then you mustcomply with the design and site review requirementsof Builder Bulletin 19R.All condominium builders are required to completea Condominium General Review Form. You canrequest a copy of the form by calling the Licensingand Underwriting Department at 1-877-696-6497ext. 3001 or sending an e-mail to: L&U@tarion.com.Alternatively, if your application is submittedthrough BuilderLink, you will be required to submita Condominium General Review Form to Tarion.After you submit the form and your risk assessmentis completed, you will be advised of the securityrequirements for the project. Security must be postedprior to registration with Tarion and/or the taking ofdeposits and the signing of purchase agreements.All units must be enrolled with Tarion at least30 days prior to the start of construction and/ormarketing. Please refer to Builder Bulletin 27on Tarion.com for more information.If you are registeredon BuilderLink you cancomplete these formselectronically as partof the renewal or initialregistration process.10 Tarion.com
Residential CondominiumConversion ProjectsAs of January 2018, residential condominiumconversion projects qualify for warranty coverage.The warranty applies to projects where the firstAgreement of Purchase and Sale was signed on orafter January 1, 2018.A residential condominium conversion projectis when an existing non-residential building(e.g., warehouse, church) is converted intoa condominium and pre-existing elements of thebuilding, such as the foundation or frame, areincorporated into the new design and constructionof the project. Buildings that were originally builtfor residential use – like rental apartment buildings– will not qualify for coverage unless otherwisespecifically permitted.Builders who wish to construct residentialcondominium conversion projects and vendorswho wish to sell units in these projects mustbe registered with Tarion.In addition to the usual requirements for registrationas a condominium , a vendor or builder of residentialconversion projects must comply with BuilderBulletin 51, which requires that the vendor andbuilder provide a Property Assessment Report,Capital Replacement Plan, and a Pre-ExistingElements Fund Study before any sale of unitsand at least 90 days before commencement ofconstruction. Tarion must approve these documentsbefore the project can be enrolled.Vendors and builders of residential condominiumconversion projects must also comply with thedesign and site review requirements of BuilderBulletin 19R.How to Become a New Home Builder 11
Terms and Conditionsof RegistrationPrior to approving a vendor or builder application,Tarion will conduct a risk assessment to determinewhether any terms and conditions of registration,such as security, will be required.You will be notified by letter of any terms andconditions that apply to your registration. You mustsign and return the letter to Tarion’s Licensing andUnderwriting department before your applicationcan be processed. Alternatively, if you registerthrough BuilderLink, Tarion will only require a noticeof the terms and conditions to be accepted and nosignature is necessary.Terms and conditions of registration often includethe requirement to provide security. Builder Bulletin28 describes the risk assessment process and levelsof security.For condominiums, security is required prior tothe registration or sale of any condominium units.Enrolment will not be approved until the requiredsecurity is provided to Tarion.Builder Bulletin 28describes the riskassessment process andlevels of security.12 Tarion.com
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Start Right Programfor New BuildersOnce your application for registration has beengranted, you will be enrolled in Tarion’s StartProgram for new builders. The Start Right Programis an important part of how Tarion helps newbuilders start out on the right foot in the homebuilding industry by providing timely informationand education that will help them better fulfilltheir warranty obligations.As part of the Start Right Program, each new builderis assigned to a seasoned Tarion representativewhose goal is to help them understand theirstatutory warranty obligations to both homeownersand Tarion. These representatives are availableto answer questions about how the warranty mayapply to potential defects, provide training andguidance, and offer advice to builders on meetingtheir warranty obligations.Once your application for registration has beengranted, you will be enrolled in Tarion’s Start RightProgram for new builders.As part of the StartRight Program, eachnew builder is assignedto a seasoned Tarionrepresentative.14 Tarion.com
In addition, builders in the Start Right Programreceive targeted education and communicationpieces from Tarion at certain milestones intheir careers like: A welcome letter from their dedicated Tarionrepresentative detailing education programsavailable to builders. A personal check-in when they enrol theirfirst home in the warranty program. Another check-in when they receive theirfirst statutory warranty form. Alerts when new policies are introducedand when new builder education resourcesare made available.Builders in the Start Right Program are also expectedto attend a Tarion Builder Update session withintheir first year of registration, setting the stage forongoing education throughout their careers.By helping builders start their careers off on theright path and working to ensure they have the toolsthey need to meet their warranty obligations, Tarionis helping to raise the level of customer serviceand ultimately ensure a better new home ownershipexperience for Ontario’s new home buyers.Builders are expectedto attend a TarionBuilder Update sessionwithin their first year ofregistration.How to Become a New Home Builder 15
ResourcesYour application, approval and registration issubject to the Ontario New Home Warranties PlanAct, applicable Builder Bulletins and any and allfurther terms and conditions which may be placedon your registration, e.g. the posting of security, alimit on the homes you will be allowed to build, etc.If at any time during your application processyou have questions, or require assistance withthe application form, please contact the Licensingand Underwriting Department toll free at:1-877-696-6497 ext. 3001 or viathe Contact Us page at Tarion.com.For more information, visit Tarion.com16 Tarion.com
Questions? Ask Us!1-877-982-7466Licensing and Underwriting1-877-696-6497 ext. 3001L&U@tarion.comTarion.comTarion head office:5160 Yonge Street12th FloorToronto, ON M2N 6L9
If you are applying as a Builder or Vendor/Builder, all 7 core competencies are required to register. If you are applying as a vendor only, five (5) core competencies are required; Building Codes and Construction Technology are excluded. Please note, you must have a registered builder to 'build' for you. The competencies include: 1.
