How to Become a New Home Builder - A guide to becoming a registered home builder in Ontario - Tarion.com
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
How to Become a New Home Builder A guide to becoming a registered home builder in Ontario
About Tarion For more than 40 years, Tarion has provided new home warranty protection to over two million Ontario homes. Tarion works hard every day to serve the public interest by, first and foremost, protecting consumers and their new home purchases. We regulate new home builders and ensure they meet a province wide standard of technical competence and financial capacity. We investigate homeowner warranty claims; resolve warranty disputes between homeowners and builders; provide deposit and delayed closing protection for new home buyers; and prosecute illegal builders. We also manage the Guarantee Fund, an important financial reserve designed to help shield Ontario consumers from possible catastrophic building events. All of this enhances fairness and confidence in Ontario’s new home building industry.
Who Needs to Register?
Anyone planning to build and/or
sell a new home in Ontario must
be registered with Tarion. They
must also enrol the home(s) in
the 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 undertakes
the performance of all the work and the supply
of all the material necessary to construct
a completed home whether for the purpose
of sale by the person or under a contract with
a vendor or owner;
A vendor is defined as someone who sells on their
own behalf a home (not previously occupied) to
an owner. This includes a builder who constructs a
home under a contract with the owner.
Accessibility at Tarion
Tarion is committed to providing an inclusive and
accessible environment in which all members of the
public have equal access to its services and are treated
with dignity and respect. If you require accommodation,
please visit Tarion.com or contact us at 1-877-982-7466
for assistance.
How to Become a New Home Builder | 1
Registration Requirements Residential freehold and low rise condominium construction under Part 9 of the Ontario Building Code: Prior to registration: Completion of seven educational competencies. During registration assessment: A business interview with a Tarion representative. Residential high rise condominium construction under Part 3 of the Ontario Building Code: In addition to attending a mandatory orientation session and business interview with a Tarion representative, residential high rise condominium construction is subject to further auditing requirements and inspections during the building process. More information about registration requirements can be found on Tarion.com. Residential condominium conversion projects: In addition to the other registration requirements for condominium construction, vendors and builders of a residential condominium conversion project must provide the Property Assessment Report, Capital Replacement Plan and Pre-Existing Elements Fund Study before any sales of units or commencement of construction, as required by Builder Bulletin 51. 2 | Tarion.com
Education Requirements
Prior to proposing to build residential freehold
and low rise condominium construction under Part 9
of the Ontario Building Code you are required to
complete seven educational competencies in
addition to Tarion’s existing registration requirements.
The educational requirements are based on the
Canadian Home Builders’ Association’s National
Education Benchmarks for residential construction.
Each core competency must be held by one or shared
by several Directors or Officers (DO) of the company
or 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) 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. Business Planning and Management
2. Financial Planning and Management
3. Project Management and Supervision
4. Legal Issues in Housing
5. Building Codes in Ontario*
6. Construction Technology *
7. Customer Service and Tarion Requirements
* N ew vendor only applicants are not required to complete the
Building Code in Ontario or Construction Technology competencies
Education Providers
For a current list of course formats and education
providers, please visit the Becoming a Registered
Builder section on Tarion.com.
How to Become a New Home Builder | 3
Education Requirements: Assessing Current Competencies and Applying for Exemptions If you believe you already have certain competencies and wish to be tested on these competencies instead of taking a course, you may register to write an assessment exam through Algonquin College. In some cases, Tarion may consider exemptions for some of the education requirements based on an applicant’s prior experience and education. Please visit the Becoming a Registered Builder section of Tarion.com to learn more. Exemptions will be considered for the following categories: Applicants who were Principals, Officers, or Directors for five or more years with a registered builder; Applicants who were employees engaged in the customer service, construction or business management of a registered builder and who have five or more years in that capacity; Applicants who have obtained comparable core competencies with another Canadian warranty program; Applicants who have achieved a professional designation or obtained formal education in an area related to an area of competency; Applicants who have achieved Ministry of Municipal Affairs and Housing recognition for competency in Part 9 of the Ontario Building Code. Tarion will evaluate exemption requests on a case by case basis. If you think your experience and professional qualification may be eligible for an exemption, please complete the Equivalency Request Form and provide all supporting documentation you wish to be considered in our decision-making process to L&U@tarion.com. 4 | Tarion.com
Completing the Application
Tarion is established as an underwriter to the
industry and as such, needs to fully understand your
business proposal and your plans for its success.
New applicants must prepare and submit applicable
information so Tarion may complete your application
review effectively and efficiently.
An incomplete application package will result
in a delay in your registration process.
Based on the type of organization you are applying
as, please refer to the Application for Registration
package to understand which document applies
to you.
Complete sections A to O on the Application
for Registration form and include all applicable
information and provide a $2,500 application fee
payable to Tarion.
We encourage you to submit your application
electronically via Tarion.com, where you can
complete, pay and submit your application online.
Along with your
Application for
Registration there is
$2,500 application fee
(tax exempt) payable
to Tarion.*
* Umbrella applicants please contact Licensing & Underwriting
at 1-877-696-6497 or 416-229-3844 ext. 3001
6 | Tarion.com
Once you have submitted your application
online: sign up for Tarion’s web-based portal,
BuilderLink
Through BuilderLink you
can track the status of your
application and accept
your terms and conditions
if approval is granted.
As part of your application process, you should
familiarize yourself with the Ontario New Home
Warranties Plan Act and Builder Bulletins on
Tarion.com, as they form part of the terms and
conditions you will need to adhere to if your
registration is approved.
As part of your application
process, you should
familiarize yourself with
the Builder Bulletins
on Tarion.com.
How to Become a New Home Builder | 7
8 | Tarion.com
Business Interview
and Information Session
After you have submitted an application and
met the registration requirements, Tarion will
contact you to attend a mandatory business
interview and information session to successfully
complete your registration.
The purpose of the business interview and
information session is to:
Establish an understanding of Tarion’s
expectations;
Evaluate your planned business venture
and your background;
Review your responsibilities, timelines
and customer service standard you are
expected to meet.
You will be scheduled to
attend a business interview
and be required to submit
information to successfully
complete your registration.
How to Become a New Home Builder | 9Additional Registration Requirements
for Condominium Construction
If you are building residential condominiums in
Ontario, you must attend an interview with a Tarion
representative after submitting your application
for registration.
If you are planning to build a high rise condominium
project and Part 3 of the Ontario Building Code
applies to any element of the project, then you must
comply with the design and site review requirements
of Builder Bulletin 19R.
All condominium builders are required to complete
a Condominium General Review Form. You can
request a copy of the form by calling the Licensing
and Underwriting Department at 1-877-696-6497
ext. 3001 or sending an e-mail to: L&U@tarion.com.
Alternatively, if your application is submitted
through BuilderLink, you will be required to submit
a Condominium General Review Form to Tarion.
After you submit the form and your risk assessment
is completed, you will be advised of the security
requirements for the project. Security must be posted
prior to registration with Tarion and/or the taking of
deposits and the signing of purchase agreements.
All units must be enrolled with Tarion at least
30 days prior to the start of construction and/or
marketing. Please refer to Builder Bulletin 27
on Tarion.com for more information.
If you are registered
on BuilderLink you can
complete these forms
electronically as part
of the renewal or initial
registration process.
10 | Tarion.comResidential Condominium
Conversion Projects
As of January 2018, residential condominium
conversion projects qualify for warranty coverage.
The warranty applies to projects where the first
Agreement of Purchase and Sale was signed on or
after January 1, 2018.
A residential condominium conversion project
is when an existing non-residential building
(e.g., warehouse, church) is converted into
a condominium and pre-existing elements of the
building, such as the foundation or frame, are
incorporated into the new design and construction
of the project. Buildings that were originally built
for residential use – like rental apartment buildings
– will not qualify for coverage unless otherwise
specifically permitted.
Builders who wish to construct residential
condominium conversion projects and vendors
who wish to sell units in these projects must
be registered with Tarion.
In addition to the usual requirements for registration
as a condominium , a vendor or builder of residential
conversion projects must comply with Builder
Bulletin 51, which requires that the vendor and
builder provide a Property Assessment Report,
Capital Replacement Plan, and a Pre-Existing
Elements Fund Study before any sale of units
and at least 90 days before commencement of
construction. Tarion must approve these documents
before the project can be enrolled.
Vendors and builders of residential condominium
conversion projects must also comply with the
design and site review requirements of Builder
Bulletin 19R.
How to Become a New Home Builder | 11Terms and Conditions
of Registration
Prior to approving a vendor or builder application,
Tarion will conduct a risk assessment to determine
whether any terms and conditions of registration,
such as security, will be required.
You will be notified by letter of any terms and
conditions that apply to your registration. You must
sign and return the letter to Tarion’s Licensing and
Underwriting department before your application
can be processed. Alternatively, if you register
through BuilderLink, Tarion will only require a notice
of the terms and conditions to be accepted and no
signature is necessary.
Terms and conditions of registration often include
the requirement to provide security. Builder Bulletin
28 describes the risk assessment process and levels
of security.
For condominiums, security is required prior to
the registration or sale of any condominium units.
Enrolment will not be approved until the required
security is provided to Tarion.
Builder Bulletin 28
describes the risk
assessment process and
levels of security.
12 | Tarion.comHow to Become a New Home Builder | 13
Start Right Program
for New Builders
Once your application for registration has been
granted, you will be enrolled in Tarion’s Start
Program for new builders. The Start Right Program
is an important part of how Tarion helps new
builders start out on the right foot in the home
building industry by providing timely information
and education that will help them better fulfill
their warranty obligations.
As part of the Start Right Program, each new builder
is assigned to a seasoned Tarion representative
whose goal is to help them understand their
statutory warranty obligations to both homeowners
and Tarion. These representatives are available
to answer questions about how the warranty may
apply to potential defects, provide training and
guidance, and offer advice to builders on meeting
their warranty obligations.
Once your application for registration has been
granted, you will be enrolled in Tarion’s Start Right
Program for new builders.
As part of the Start
Right Program, each
new builder is assigned
to a seasoned Tarion
representative.
14 | Tarion.comIn addition, builders in the Start Right Program
receive targeted education and communication
pieces from Tarion at certain milestones in
their careers like:
A welcome letter from their dedicated Tarion
representative detailing education programs
available to builders.
A personal check-in when they enrol their
first home in the warranty program.
Another check-in when they receive their
first statutory warranty form.
Alerts when new policies are introduced
and when new builder education resources
are made available.
Builders in the Start Right Program are also expected
to attend a Tarion Builder Update session within
their first year of registration, setting the stage for
ongoing education throughout their careers.
By helping builders start their careers off on the
right path and working to ensure they have the tools
they need to meet their warranty obligations, Tarion
is helping to raise the level of customer service
and ultimately ensure a better new home ownership
experience for Ontario’s new home buyers.
Builders are expected
to attend a Tarion
Builder Update session
within their first year of
registration.
How to Become a New Home Builder | 15Resources
Your application, approval and registration is
subject to the Ontario New Home Warranties Plan
Act, applicable Builder Bulletins and any and all
further terms and conditions which may be placed
on your registration, e.g. the posting of security, a
limit on the homes you will be allowed to build, etc.
If at any time during your application process
you have questions, or require assistance with
the application form, please contact the Licensing
and Underwriting Department toll free at:
1-877-696-6497 ext. 3001 or via
the Contact Us page at Tarion.com.
For more information, visit Tarion.com
16 | Tarion.comQuestions? Ask Us! 1-877-982-7466 Licensing and Underwriting 1-877-696-6497 ext. 3001 L&U@tarion.com Tarion.com Tarion head office: 5160 Yonge Street 12th Floor Toronto, ON M2N 6L9
You can also read
