HCRA신축 주택 건설 규제청

What is it?

The HCRA (Home Construction Regulatory Authority) licenses and oversees everyone who builds new homes (builders) or sells them (vendors) in Ontario. It is a not-for-profit corporation that the Ontario government designated to administer the New Home Construction Licensing Act, 2017.

The Act was passed in 2017, and the HCRA is the regulatory authority the government designated under it. Today the roles are split: builder licensing and the code of ethics belong to the HCRA, and the new home warranty to Tarion.

For a buyer, the HCRA matters for two reasons: it is where you check that a builder is legitimate, and where you complain about a builder’s conduct.

Who needs a licence?

Section 37 of the Act forbids anyone from selling or offering to sell a new home without a vendor licence, and from building or offering to build one without a builder licence. The HCRA puts it plainly: all new home builders and sellers in Ontario are required by law to be licensed by the HCRA, and it is illegal to build or sell a new home without a valid licence.

• A company that builds new homes → builder licence
• A company that sells new homes (including a developer selling pre-construction) → vendor licence
• A company that builds and sells → builder/vendor licence
• A company that builds a home on land you own (a contract home) → vendor and builder licence
• A person building a home on their own land to live in, not to sell (an owner-builder) → usually no licence needed, but that home has no Tarion warranty

A "new home" is a dwelling never lived in before, usable year-round, on a permanent foundation. Renovating an existing home usually does not count, but laneway houses, coach houses and similar separate dwellings generally need a licence and warranty. See HCRA Advisory 3 for the exact definition.

Checking a builder in the Ontario Builder Directory

In the Ontario Builder Directory (obd.hcraontario.ca), run by the HCRA, you search by the builder’s name and see its licence status, years of activity, number of homes built and any regulatory action the HCRA has taken, including conduct concerns, charges and convictions. A February 2026 HCRA article says the directory covers more than 7,000 licensed builders and sellers.

According to Tarion, the directory also shows the names of principals, directors and officers, the number and type of homes closed, warranty claims paid and outstanding, breaches of the warranty process, past cancelled condo projects, licence conditions and related companies. Warranty information is updated from data Tarion shares with the HCRA.

A builder that is not listed may be operating without a licence. The HCRA says it directly: do not buy from unlicensed builders. If you buy a resale home less than seven years old, you can also confirm its warranty here.

What to look for in the directory

• Whether the licence is active and whether conditions are attached to it
• Years of activity and homes built: is an inexperienced company taking on a large project?
• Any cancelled condo projects in the past
• Conduct concerns, charges, convictions and discipline committee decisions
• "Notice of Proposal" (NOP): after an investigation, the HCRA is proposing to put conditions on the licence, suspend or revoke it, or refuse to renew it. The builder has 15 days from being served to ask the Licence Appeal Tribunal for a hearing, and the action is not final until that process ends. The HCRA advises understanding an NOP fully before signing with that builder.
• Related companies: the record of other companies run by the same officers under different names

Illegal building and illegal selling

The HCRA calls it "illegal building" or "illegal selling" when someone builds or sells a new home without a licence, or fails to enrol the home in the Tarion warranty program. Buyers of such homes may lose warranty and deposit protection. Tarion has said that large-scale illegal new home sales in recent years caused the largest deposit claims event in its history, which is why the 45-day registration rule for freehold buyers started in April 2026.

A municipal building permit is not a licence. A permit only confirms that the structure meets planning and Building Code requirements. From February 16, 2026, the building permit application form must include the builder’s HCRA licence number. If you suspect illegal building, you can report it through the HCRA’s Illegal Building Report Form.

Code of ethics and complaints

Licensed builders must act honestly and fairly under the Act, its regulations and a Code of Ethics that sets out 20 expectations. Section 56 of the Act lets the HCRA registrar receive complaints about conduct that may break the law, request information from the builder and try to mediate. Breaches of the code go to a discipline committee, which can order education courses, fines and other measures (s. 57).

The HCRA handles complaints about a licensed builder’s conduct (honesty, operating legally) and competency (ability to build, financial responsibility). After you file, you get an automatic confirmation, a staff member contacts you within three to five business days, and the builder is notified and asked to respond. Outcomes may be published in the Builder Directory.

Warranty matters, on the other hand, go to Tarion, not the HCRA: defect repairs, delayed closing compensation and deposit protection. The HCRA says so on its complaints page.

How is the HCRA different from Tarion?

The two work together. The Addendum attached to every new home agreement was developed by Tarion and the HCRA. Tarion says the 45-day purchase registration lets it check whether a builder is licensed and selling legally, and if not, alert the HCRA right away so it can decide what action to take.

Example