Embed Size (px)
Citation preview
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.
How to Become a New Home Builder | 1
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.
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.
Who Needs to Register?
2 | Tarion.com
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.
How to Become a New Home Builder | 3
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
* New vendor only applicants are not required to complete the Building Code in Ontario or Construction Technology competencies
Education ProvidersFor a current list of course formats and education providers, please visit the Becoming a Registered Builder section on Tarion.com.
Education Requirements
4 | Tarion.com
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&[email protected].
6 | 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.
* Umbrella applicants please contact Licensing & Underwriting at 1-877-696-6497 or 416-229-3844 ext. 3001
Along with your Application for Registration there is $2,500 application fee (tax exempt) payable to Tarion.*
How to Become a New Home Builder | 7
Once you have submitted your application online: sign up for Tarion’s web-based portal, BuilderLink
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.
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 Builder Bulletins on Tarion.com.
8 | Tarion.com
How to Become a New Home Builder | 9
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.
Business Interview and Information Session
You will be scheduled to attend a business interview and be required to submit information to successfully complete your registration.
10 | Tarion.com
Additional Registration Requirements for Condominium Construction
If you are registered on BuilderLink you can complete these forms electronically as part of the renewal or initial registration process.
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&[email protected].
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.
How to Become a New Home Builder | 11
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.
Residential Condominium Conversion Projects
12 | Tarion.com
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.
Terms and Conditions of Registration
Builder Bulletin 28 describes the risk assessment process and levels of security.
How to Become a New Home Builder | 13
14 | Tarion.com
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.
Start Right Program for New Builders
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.
How to Become a New Home Builder | 15
In 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.
16 | Tarion.com
For more information, visit Tarion.com
Resources
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.
Tarion.com
Questions? Ask Us!1-877-982-7466
Licensing and Underwriting1-877-696-6497 ext. 3001 L&[email protected]
Tarion head office:
5160 Yonge Street 12th FloorToronto, ON M2N 6L9
