HCRA vs Tarion — what changed in 2021 and who licenses my builder now?

Ontario's builder oversight system was restructured in February 2021 when the province split licensure from warranty administration. Before that date, Tarion Warranty Corporation handled both new-home builder registration AND the mandatory new-home warranty under the Ontario New Home Warranties Plan Act. Effective February 1, 2021, the province bifurcated the two functions: the Home Construction Regulatory Authority (HCRA) now licenses builders and vendors under the New Home Construction Licensing Act, 2017 (NHCLA), while Tarion continues administering the mandatory new-home warranty under ONHWPA.

Under NHCLA Part II, anyone who builds or sells new homes in Ontario must hold an active HCRA licence. The licence requires a competency exam, financial guarantee, criminal record check, and ongoing continuing education. HCRA publishes a public Builder Directory at hcraontario.ca where homeowners can verify licensure, view conduct history, and check for restrictions or revocations. HCRA also enforces the Builder Code of Ethics under O. Reg. 245/21 and can fine, suspend, or revoke licences for breaches.

Tarion's role narrowed but did not disappear. Every new home built in Ontario must be enrolled with Tarion before construction begins, and the warranty provides one-year (workmanship and materials), two-year (water penetration, electrical, plumbing, heating distribution, exterior cladding), and seven-year (major structural defects) coverage. Tarion handles claim adjudication, conciliation, and conditional builder access tied to warranty performance.

For renovations specifically, the picture differs. HCRA licensure is required when work meets the NHCLA definition of building a 'new home,' which includes substantial reconstruction. Pure interior renovations of an existing dwelling generally fall outside HCRA jurisdiction. Tarion warranty carry-over applies on additions exceeding roughly 15% of original floor area or where the work substantially reconstructs the dwelling — Tarion publishes specific thresholds in its Builder Bulletin series.

Verify both before signing: confirm HCRA licence number on the Builder Directory, then confirm Tarion enrolment number on Tarion's MyHome portal. A registered HCRA licence without the matching Tarion enrolment is a red flag.