You're using an outdated browser. This website will not display correctly and some features will not work.
Learn more about the browsers we support for a faster and safer online experience.

# result(s)

Français

Ontario New Home Warranties Plan Act

ONTARIO REGULATION 627/20

GENERAL

Consolidation Period:  From April 1, 2021 to the e-Laws currency date.

Last amendment: 244/21.

Legislative History: 243/21, 244/21.

This is the English version of a bilingual regulation.

CONTENTS

1.

Definitions

2.

Definition of “tribunal” in s. 1 of the Act

3.

Information to be provided by the Corporation

4.

Information to be provided by Registrar

4.1

Ombudsperson

5.

Prescribed person, s. 10.3 (2) of the Act

6.

Prescribed information, s. 10.3 (3) of the Act

7.

Prescribed persons, s. 10.3 (4) of the Act

8.

Prescribed person, s. 10.3 (7) of the Act

9.

Prescribed person, s. 10.3 (8) of the Act

9.1

Evidence required of claimant, ss. 14 (5.1) and (5.2) of the Act

9.2

Expert opinions to be shared with claimant

10.

Prescribed person, s. 14 (13) of the Act

11.

Notice re appeal

12.

Additional parties re s. 14 (18) of the Act

13.

Indemnification

14.

Administration fee payable to the Corporation

15.

Interest payable to the Corporation

16.

Transition, terms and conditions

17.

Transition, agreements

18.

Transition, security

19.

Transition, guarantee or indemnity

20.

Transition, enrolment

21.

Transition, qualification for enrolment

22.

Transition, information, etc.

23.

Proceeding re claims

 

Definitions

1. In this Regulation,

“principal” means,

(a) in relation to an applicant,

(i) a director, officer, or person who beneficially owns or controls, directly or indirectly, more than 10 per cent of the voting shares or voting interests in respect of the applicant, in the case of a corporate applicant,

(ii) a partner or member of the applicant, in the case of an applicant that is a partnership or other unincorporated association,

(iii) a trustee or beneficiary, in the case of an applicant that is a trust,

(iv) the sole proprietor, in the case of an applicant that is a sole proprietorship, or

(v) in any case, a person who has the ability to exercise, directly or indirectly, control or significant influence over an applicant or the sale, construction, financing or after sales service of the homes that are the subject of the application, or

(b) in relation to a registrant or a former registrant,

(i) a director, officer, or person who beneficially owns or controls, directly or indirectly, more than 10 per cent of the voting shares or voting interests in respect of a registrant or former registrant, in the case of a corporate applicant,

(ii) a partner or member of the registrant or former registrant, in the case of a registrant or former registrant that is a partnership or other unincorporated association,

(iii) a trustee or beneficiary, in the case of a registrant or former registrant that is a trust,

(iv) the sole proprietor, in the case of a registrant or former registrant that is a sole proprietorship, or

(v) in any case, a person who has the ability to exercise, directly or indirectly, control or significant influence over an applicant or the sale, construction, financing or after-sales service of the homes that are the subject of the application; (“commettant”)

“third party contractor” means a person who is not employed by an applicant, registrant or former registrant, but who has or had entered into a contract with the applicant, registrant or former registrant to perform work or services in relation to the sale, construction, financing or after-sales service in relation to a home. (“entrepreneur tiers”)

Definition of “tribunal” in s. 1 of the Act

2. For the purposes of the definition of “tribunal” in section 1 of the Act, every matter that includes a reference to “tribunal” in the Act is a prescribed matter and the Licence Appeal Tribunal is prescribed as the tribunal in respect of those matters.

Information to be provided by the Corporation

3. (1) For the purposes of subsection 2.0.2 (1) of the Act, the following is the prescribed information that the Corporation is required to share with the Minister and the regulatory authority:

1. Information related to the determination of whether a home qualifies for enrolment in the Plan, including any information related to the refusal of an application described in subsection 10.3 (1) of the Act, and to the suspension or revocation of the determination.

2. Information related to the determination of whether to enrol a home in the Plan, including any information related to the refusal of an application described in subsection 10.3 (2) of the Act, and to the cancellation of the enrolment.

3. Information related to conditions imposed by the Registrar under subsection 10.3 (6) of the Act.

4. Information related to claims for compensation from the guarantee fund, including information related to the results of those claims.

5. Registration and registration renewal applications, including financial information contained in those applications that relate to applicants, registrants and former registrants.

6. All information received from a chief building official under subsection 8 (8.1) of the Building Code Act, 1992.

7. Information related to interested persons in respect of applicants, registrants, former registrants, licensees and former licensees.

8. Financial information that relates to principals of applicants, registrants, former registrants, licensees and former licensees.

9. Information related to the past financial position of applicants, registrants, former registrants, licensees and former licensees.

10. Information relating to the past conduct of,

i. applicants, registrants, former registrants, licensees and former licensees, and

ii. principals, employees and third party contractors of applicants, registrants, former registrants, licensees and former licensees.

11. Information related to the competencies of applicants, registrants and former registrants.

12. Information related to inspections conducted under section 18 of the Act and the results of those inspections.

13. Information related to the following:

i. Terms and conditions attached to registrations.

ii. Suspensions or revocations of registrations.

iii. Refusals to register an applicant or to renew an application.

14. Information related to complaints received about builders and vendors and any actions taken or proposed to be taken with respect to complaints.

15. Information related to investigations conducted in respect of the Act and the results of those investigations.

16. Information related to charges, prosecutions and convictions under the Act or any other Act.

17. Information related to enforcement actions taken by the Corporation and the results of those enforcement actions.

18. All other information the regulatory authority reasonably requests for the purposes of fulfilling its objects.

(2) The Corporation is only required to share the information set out in subsection (1) with the Minister if requested to do so by the Minister.

(3) The information listed in subsection (1) that is shared with the Minister shall not include any personal information as defined in subsection 2 (1) of the Freedom of Information and Protection of Privacy Act unless the person to whom the information relates has consented to their personal information being shared with the Minister.

(4) Despite subsection (1), the Corporation shall not share any information described in subsection (1) with the regulatory authority or the Minister if the information is held only by the ombudsperson mentioned in section 5.7 of the Act and is not otherwise in the Corporation’s possession.

(5) Despite subsection (1), the Corporation is not required to share any information described in subsection (1) with the regulatory authority if an agreement referred to in subsection 2.0.2 (3) of the Act between the Corporation and the regulatory authority provides that the information is not to be shared.

Information to be provided by Registrar

4. The following information is prescribed for the purposes of paragraph 3 of section 5.6 of the Act:

1. Information about the amount of money a builder or vendor owes to the Corporation arising out of a claim for compensation from the guarantee fund.

2. Information related to defects under warranty that a builder or vendor did not repair or resolve.

3. Information related to defects under warranty that a builder or vendor did not repair or resolve that reflect violations of the Ontario Building Code.

4. Information related to chargeable conciliations in respect of a builder or vendor.

5. Information related to major structural defects that a builder or vendor did not repair or resolve.

Ombudsperson

4.1 (1) Without limiting the generality of paragraphs 1 and 2 of section 5.7 of the Act, the ombudsperson shall carry out the following duties:

1. To receive, investigate and respond to complaints from owners and purchasers of homes regarding the Corporation’s compliance with the Act, the regulations and the administrative agreement.

2. To provide information to owners and purchasers of homes regarding assistance or remedies that may be available under the Act and the regulations.

3. To identify, inquire into and analyze,

i. trends in complaints from owners and purchasers of homes, and

ii. policy matters and systemic issues involving the Corporation.

4. To develop and submit reports to the Corporation or the board at any time regarding the activities, findings or recommendations of the ombudsperson.

5. To publish such reports under paragraph 4 as the ombudsperson considers appropriate on the ombudsperson’s website and by any other means the ombudsperson considers appropriate.

6. To develop and publish on the ombudsperson’s website and by any other means the ombudsperson considers appropriate an annual report that includes the following:

i. A summary of the activities of the ombudsperson over the prior year related to their duties under the Act, including any relevant findings in respect of the trends, matters or issues referred to in paragraph 3.

ii. Recommendations by the ombudsperson in respect of the administration of the Act by the Corporation and the Corporation’s progress in responding to them.

7. To establish, maintain and publish on its website a policy with respect to the collection, use, disclosure and retention of information by the ombudsperson.

8. To maintain independence, fairness and impartiality in carrying out the ombudsperson’s duties. O. Reg. 244/21, s. 1.

(2) In carrying out the ombudsperson’s duties, the ombudsperson shall not consider complaints made by builders or vendors. O. Reg. 244/21, s. 1.

Prescribed person, s. 10.3 (2) of the Act

5. For the purposes of subsection 10.3 (2) of the Act, a vendor is a prescribed person.

Prescribed information, s. 10.3 (3) of the Act

6. (1) For the purposes of subsection 10.3 (3) of the Act, the following information is prescribed:

1. The full name, address and contact information of the applicant.

2. The applicant’s licence number issued by the regulatory authority under the New Home Construction Licensing Act, 2017.

3. The type, nature and legal structure of the business organization of the applicant.

4. The full names, addresses and contact information of all principals of the applicant.

5. The full name, address and contact information of interested persons in respect of the applicant.

6. A brief description of the applicant’s business experience.

7. Information regarding the qualifications of the applicant’s principals, employees and third party contractors to carry out their functions for the applicant in connection with the sale, construction, financing and after-sales services of the homes which are the subject of the application.

8. References from financial institutions, customers and other entities.

9. Particulars of bonding arrangements.

10. A statement as to the maximum number and types of homes that are the subject of the application and the expected timeframes for the design, development, sale, construction and turnover to the owner or owners, with particular detail for the 12-month period after the date of the application.

11. An inventory of other homes that are not the subject of the application that may be sold or built during the 12-month period after the date of the application.

12. Information to determine if the applicant has sufficient personnel and other resources, including third party contracts and arrangements, to adequately undertake, complete and to provide after-sales service in relation to the proposed sale or building of the homes, in addition to any other new homes or other construction projects that the applicant has underway.

13. Information relating to the homes that are the subject of the application in terms of expected selling prices, business plans and marketing, design, work plans, labour and materials.

14. Financial information related to project financing, including,

i. the budget proposed for the homes that are the subject to the application to be sold or built in the 12-month period after the date of the application,

ii. information that indicates the source of the funds that match the budget requirements, and

iii. evidence to support each of the line items in the budget for the sources of funds, whether debt, equity or otherwise.

15. If the applicant is not a builder, evidence satisfactory to the Registrar that the applicant has a continuing agreement or agreements with at least one builder who holds a licence as a builder under the New Home Constructions Licensing Act, 2017, where the builder agrees to,

i. complete the homes which are the subject of the application, and

ii. perform the work required to meet the ongoing warranty and protection obligations of the applicant under the Act.

16. Information regarding any municipal approvals, inspections or permits relating to the homes that are the subject of the application.

17. Information regarding performance security and indemnities proposed to support the application.

18. Information regarding any current or past circumstances relating to the applicant’s failure, or the failure of those for whom the applicant is responsible, to comply with applicable law, warranty and protection obligations, and contractual obligations involving sales, construction of homes, financing and after-sales service of homes.

(2) An applicant, builder or vendor is not required to provide any of the information referred to in subsection (1) unless specifically requested to do so by the Registrar.

Prescribed persons, s. 10.3 (4) of the Act

7. For the purposes of subsection 10.3 (4) of the Act, principals, employees and third party contractors of an applicant are prescribed persons.

Prescribed person, s. 10.3 (7) of the Act

8. For the purposes of subsection 10.3 (7) of the Act, the builder and vendor associated with the new home to which the application relates are prescribed persons.

Prescribed person, s. 10.3 (8) of the Act

9. For the purposes of subsection 10.3 (8) of the Act, the vendor associated with the new home to which the application relates is a prescribed person.

Note: On July 1, 2021, the Regulation is amended by adding the following sections: (See: O. Reg. 243/21, s. 1)

Evidence required of claimant, ss. 14 (5.1) and (5.2) of the Act

9.1 (1) For the purposes of clause 14 (5.1) (a) of the Act, an explanation of the reasons for the concern giving rise to a claim must be in writing. O. Reg. 243/21, s. 1.

(2) For the purposes of clause 14 (5.1) (b) of the Act, a claim that relates to an entitlement to receive payment out of the guarantee fund under subsection 14 (5.0.3) of the Act is a prescribed claim. O. Reg. 243/21, s. 1.

(3) Clause 14 (5.1) (c) of the Act does not apply to a claim or in any proceeding relating to the claim after the Corporation has issued a notice of decision under subsection 14 (13) of the Act in respect of the claim. O. Reg. 243/21, s. 1.

Expert opinions to be shared with claimant

9.2 (1) Subsections (2) and (3) apply if the following criteria are met:

1. In the course of an investigation under subsection 14 (6) of the Act that commences on or after this section comes into force, the Corporation receives any written technical or expert opinions dated on or after this section comes into force in respect of the claim from one or more third parties.

2. The Corporation issues a report referred to in Regulation 892 of the Revised Regulations of Ontario, 1990 (Administration of the Plan) made under the Act setting out the Corporation’s assessment or finding in respect of the claim mentioned in paragraph 1. O. Reg. 243/21, s. 1.

(2) In the circumstances described in subsection (1), the Corporation shall provide the claimant with all opinions referred to in paragraph 1 of subsection (1) when providing the claimant the report referred to in paragraph 2 of subsection (1). O. Reg. 243/21, s. 1.

(3) If there is more than one version of an opinion referred to in paragraph 1 of subsection (1), the Corporation shall provide the claimant with only the most recent version of the opinion. O. Reg. 243/21, s. 1.

(4) In this section,

“third party” means a person who is not the Corporation or a director, officer or employee of the Corporation. O. Reg. 243/21, s. 1.

(5) Nothing in this section shall be interpreted as requiring the disclosure of information that is subject to solicitor-client privilege. O. Reg. 243/21, s. 1.

Prescribed person, s. 14 (13) of the Act

10. For the purposes of subsection 14 (13) of the Act, the builder and vendor associated with a claim are prescribed persons.

Notice re appeal

11. For the purposes of subsection 14 (14) of the Act, the claimant shall provide the notice referred in subsection 14 (14) of the Act by mail or delivery within 30 days after receiving the notice of the Corporation’s decision referred to in subsection 14 (13) of the Act.

Additional parties re s. 14 (18) of the Act

12. For the purposes of subsection 14 (18) of the Act, the tribunal may specify additional parties in accordance with its rules.

Indemnification

13. (1) If a builder has offered or agreed to construct a home, commenced the construction of a new home or completed the construction of a new home, the builder shall indemnify the Corporation in circumstances where the Corporation has suffered any loss by reason of the builder’s failure to diligently perform or cause to be performed all obligations imposed by the Act or the regulations, and under any agreement made with the Corporation in respect of the Plan.

(2) If a vendor has offered to sell, agreed to sell or has sold a home, the vendor shall indemnify the Corporation in circumstances where the Corporation has suffered any loss by reason of the vendor’s failure to diligently perform or cause to be performed all obligations imposed by the Act or the regulations, and under any agreement made with the Corporation in respect of the Plan.

Administration fee payable to the Corporation

14. A vendor or builder shall pay an administration fee to the Corporation equal to 15 per cent of the amount that is paid out of the guarantee fund in payment of claims in respect of the vendor or builder, as the case may be.

Interest payable to the Corporation

15. (1) A vendor or builder shall pay to the Corporation interest at the rate of 1.5 per cent per month, calculated daily, on all amounts that the vendor or builder, as the case may be, owes to the Corporation.

(2) A vendor or builder shall make the interest payments referenced in subsection (1) on the first day of each month following the date of default in repaying the amounts owed until the amounts owed are repaid in full.

Transition, terms and conditions

16. (1) Every term and condition that was attached to a registration immediately before the day this section came into force and that relates to the maintenance, management and administration of the guarantee fund, enrolment of homes and the administration of warranties and protections, including financial and other assurances provided to the Corporation, is deemed to be a condition for the purposes of clause 10.3 (5) (b) of the Act for every home to which section 21 of this Regulation applies that is associated with the registration.

(2) If an agreement entered into between the Corporation and a vendor or builder before the day this section comes into force includes a term or condition referred to in subsection (1), the agreement is continued as necessary to give effect to the condition.

(3) For clarity, a term or condition to which subsection (1) applies may also be deemed to be a condition for the purposes of section 39 of the New Home Construction Licensing Act, 2017.

Transition, agreements

17. If an agreement entered into between the Corporation and a vendor or builder before the day this section comes into force includes a provision that relates to the maintenance, management and administration of the guarantee fund, enrolment of homes and the administration of warranties and protections, including financial and other assurances to the Corporation, the agreement is continued as necessary to give effect to that provision.

Transition, security

18. Any security that a registrant, whether by way of cash, letter of credit, performance bond, deposit trust agreement or otherwise, provided to the Corporation in respect of a registration before the day this section came into force shall be continued as a valid security held by the Corporation for the secured obligations and any related agreements continue in force.

Transition, guarantee or indemnity

19. Any guarantee or indemnity provided to the Corporation in respect of a registration before the day this section came into force, whether provided by a registrant or by another person, shall be continued as a valid guarantee or indemnity in favour of the Corporation for the indemnified or guaranteed obligations and all related agreements continue in force.

Transition, enrolment

20. (1) A home that was enrolled in the Plan immediately before the day this section came into force continues to be enrolled in the Plan.

(2) The following rules apply in connection with a home referred to subsection (1):

1. If there is a vendor of the home, the vendor is deemed, on the day this section comes into force, to have received the confirmation referred to in subclause 10.1 (e) (ii) of the Act and to have provided a copy of the confirmation in accordance with clause 10.1 (f) of the Act.

2. If there is a builder of the home, the builder is deemed, on the day this section comes into force, to have received the confirmation referred to in clause 10.2 (3) (f) of the Act and to have provided a copy of the confirmation in accordance with clause 10.2 (3) (g) of the Act.

Transition, qualification for enrolment

21. (1) The Registrar is deemed to have determined that a home is qualified for enrolment in the Plan for the purposes of the Act if, immediately before the day this section came into force, the home was associated with a registration under the Act but was not enrolled in the Plan.

(2) On the day this section comes into force, the vendor of a home referred to in subsection (1) is deemed to have, in respect of the home, received the confirmation referred to in subclause 10.1 (e) (i) of the Act and to have provided a copy of the confirmation in accordance with clause 10.1 (f) of the Act.

Transition, information, etc.

22. All information, documents or things that were provided to the Corporation under the Act in respect of an application for registration or renewal of registration before the day this section came into force may continue to be used by the Corporation to fulfil its objects under the Act.

Proceeding re claims

23. If, before the day this section came into force, a person or owner gave a notice in accordance with subsection 16 (2) of the Act, as it read immediately before it was repealed, the proceeding in respect of that notice shall be continued in accordance with section 16 as it read immediately before it was repealed.

24. Omitted (provides for coming into force of provisions of this Regulation).

 

Français