Blog PostMay 14, 2020 - Educational
Consumer Protection – Home Warranties
Tarion is the current administrator of the New Homes Warranties Plan Act which is supposed to provide consumer protection from illegal building and building defects in the form of a warranty. While the intention has been to build better buildings and financially cover building defects, the process has not always been perfect. Tarion is run by a board of directors of which the majority represented is builders. There was an inherent conflict of interest.
In 2016 Justice Cunningham completed a review of the Tarion organization and made a number of recommendations. One of the major recommendations was to split the Tarion roles of warranty provider and home builder regulator into two separate organizations. This way one organization could not be influenced by the other.
Home Construction Regulatory Authority (HRCA) has been created. HCRA is a private, not-for-profit corporation without share capital that, if designated by the Ministry of Government and Consumer Services, would be the regulatory authority enabled by the New Home Construction Licensing Act, 2017 (NHCLA) and would be responsible for licensing Ontario's new home builders and vendors.
There is little additional news about this organization. It seems to be shrouded in secrecy. HRCA will be the new licencing and builder regulator. Tarion will the warranty provider. It has been reported that the split will be up and running by the end of 2020. Stay tuned.
Henry J. Jansen, P.Eng., ACCI
President of Criterium-Jansen Engineers
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