(NC) If you’re thinking about hiring someone to build a house on land that you own, you owe it to yourself to understand what illegal building is and how you can avoid its potentially devastating consequences.
With very few exceptions, anyone who wants to build and sell a new home in Ontario needs to be registered with Tarion, the company that administers Ontario’s new home warranty program, and is required to enroll the property in the program.
Builders who are not registered are usually operating illegally and can harm buyers in different ways. For example:
•They may not be following the Ontario Building Code, and the homes they build may contain serious defects and health and safety issues.
•They often ignore other laws, leaving buyers vulnerable to significant financial loss.
•They may not be providing the mandatory warranty coverage that every new home buyer in Ontario is entitled to.
So, how can you be sure that the builder you’re thinking of hiring is following the rules?
Start by knowing when you should be concerned. Here are some of the things an unregistered builder might say:
•“You don’t need the new home warranty because I offer my own.”
•“You don’t need a warranty if you leave my name off the building permit and say you’re building it for yourself.”
•“I could give you a warranty, but it would cost extra.”
•“I built the house for myself, but decided to sell it instead.”
Before you enter into any agreements, look up your builder in the Ontario Builder Directory, which will tell you if they are registered. If your builder doesn’t appear or their registration is not active, contact Tarion for assistance – you could end up saving yourself a lot of money and stress.