Did you know, that it is illegal to build and sell a new home in Ontario without being a builder who is registered with Tarion? It is also illegal to build and sell a new home if the home is not enrolled in the Tarion Warranty Program. According to it’s blog, Tarion states that, “in 2015, Tarion was involved in 241 illegal building investigations which resulted in 105 convictions, over $330,000 in fines and two jail sentences. We have had eight defendants sentenced to jail. The longest of which was 6 months served in full and was upheld by the appeals court.”
Tarion’s enforcement arm is now targeting real estate professionals who are in some way involved in selling homes that are not registered. Real estate representatives who are a party to illegal building or who abet an illegal builder can face charges under Tarion’s governing legislation.
As professional real estate salespeople, we have a duty to understand that the law REQUIRES that new builds are to be enrolled in the Tarion program in order to protect buyers from illegal building activity. Conviction for selling an unregistered home could affect a real estate salesperson’s licence and registration with the RECO (Real Estate Council of Ontario).