How serious is illegal building?

Tuesday, April 11, 2017 Written by Emmanuelle in Real Estate industry

The Town of Oakville and 14 other Ontario municipalities has partnered with Tarion, the Ontario Home Builders’ Association (OHBA) and Ontario Building Officials Association (OBOA) on a pilot program to stop illegal building locally.
Only in Oakville, there has been 83 investigations of 103 homes in the past five years, resulting in 13 convictions and close to $28,800 in fines levied, according to Tarion – a private, not-for-profit Corporation that manages the Ontario New Home Warranties Plan Act and backstops warranty coverage.

  • Anyone in Ontario who plans to build and/or sell a new home must be registered with Tarion.
  • Let us remember that this isn’t just illegal to build a home in Ontario without a licensed builder, it is also illegal to sell it without Tarion guaranty.
  • Tarion job is to make sure new houses built in Ontario are safe, livable and built to the Ontario Building Code.”
  • There is no warranty coverage for those building a house for themselves, they’re not a Tarion builder, so there is no warranty coverage.

It is interesting to note that, last week, the Ontario government announced it intended to beef up the regulatory regime in this area by creating "a new regulatory body responsible for monitoring the province's home builders because it says the current one [Tarion] has too many conflicting roles."
Would you be willing to buy a new built home, don’t forget that you can always come with your own realtor whatever the builder agent is saying. The builder (as a seller) will pay the commission as in any transaction.
On my side I am happy that the government is taking action, hopefully in the best interest a new home buyers. Clients had very often to deal with delays, and many other problems.