When the HCRA Takes Action
This page is for builders and vendors licensed under the New Home Construction Licensing Act, 2017 (NHCLA), and for the individuals behind them. Licensing is separate from Tarion’s warranty and enrolment role. HCRA enforcement often follows unlicensed building, misleading sales practices, failure to honour agreements, or questions about the past conduct and finances of a builder’s principals.
Illustrative example, not an actual HCRA notice
“Take notice that the registrar proposes to refuse to renew your licence as a builder and vendor, for the reasons set out below. You are entitled to a hearing by the Licence Appeal Tribunal if you mail or deliver a written request for a hearing to the registrar and to the Tribunal within 15 days after service of this notice.”
Who Investigates and Who Decides
- Regulator
- The HCRA and its registrar, under the NHCLA.
- Complaints
- The registrar may receive complaints, request information from licensees, and try to mediate or resolve them (NHCLA, s. 56(1)).
- Registrar’s options
- A written warning, further education, requiring a licensee to fund education for its employees, referral to the discipline committee, a licensing proposal, or other action (s. 56).
- Inspections and investigations
- The registrar is an inspector and can inspect without a warrant for specified purposes. Investigators can obtain search warrants (ss. 58–63).
- Who decides
- The Licence Appeal Tribunal for licence proposals (s. 43); the discipline committee, with an appeal to the appeals committee, for code of ethics matters (s. 57); and an assessor for administrative penalties (ss. 75–77).
- Further appeals
- LAT decisions under the NHCLA can be appealed to the Divisional Court (Licence Appeal Tribunal Act, 1999, s. 11). The Tribunal’s order takes effect immediately even if appealed, unless it provides otherwise, but the Divisional Court may grant a stay (NHCLA, s. 43(11)).
Common Issues in Builder and Vendor Investigations
Unlicensed activity
Building or selling new homes without a licence, or through an unlicensed related company.
Past conduct and finances
The past conduct of principals and related companies, financial responsibility, and false statements in licence applications.
Sales and disclosure
Misleading advertising, pressure tactics, and failing to disclose required information to buyers (see s. 53).
Contract and closing problems
Terminating agreements to resell at higher prices, delayed closings, and deposits.
Code of ethics
Honesty, professionalism and treatment of purchasers under the code of ethics made under the Act, which the discipline committee enforces (s. 57).
What Can Happen Next
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Administrative penalty
The registrar, as an assessor, can impose an administrative penalty of up to $50,000 for contraventions specified in the regulations (NHCLA, ss. 75–76). You may appeal by delivering a written notice of appeal within 15 days after receiving the order; otherwise it is confirmed (s. 77(2)–(3)).
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Discipline committee
For a code of ethics breach, the committee may require further education, require a licensee to fund education for employees, impose a fine, and award costs (NHCLA, s. 57(4)). The maximum fine is $50,000 for an individual licensee and $100,000 for any other licensee, or any lesser prescribed amount, and the committee must consider prior findings when setting it (s. 57(4.1), (4.3)). A party may appeal to the appeals committee (s. 57(5)).
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Notice of Proposal
To refuse, suspend or revoke a licence, or impose conditions, the registrar must give a notice with reasons (NHCLA, s. 43).
Deadline
You are entitled to a LAT hearing if you mail or deliver a written request to the registrar and the Tribunal within 15 days after service of the notice (NHCLA, s. 43(2)). Registered mail is deemed served on the third day after mailing (s. 81(2)). The Tribunal may attach conditions to its order or to a licence (s. 43(9)).
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Immediate suspension
When proposing a suspension or revocation, the registrar can suspend your licence immediately if that is in the public interest. If you request a hearing, the order expires 15 days after the Tribunal receives your request, unless the hearing has started and the Tribunal extends it (NHCLA, s. 45).
Outcomes are public. The registrar must publish licensing information, suspensions and revocations, and discipline and appeals committee decisions (NHCLA, s. 82).
Checklist: Responding to the HCRA
Documents to gather
- The notice, order or referral, and proof of when and how it was served
- Licence applications and renewals, and any conditions on your licence
- Corporate records for the builder, its principals and related companies
- Agreements of purchase and sale, disclosures, advertising and deposit records
- Financial statements and records of any lawsuits, liens or judgments
- Correspondence with purchasers and with Tarion, if relevant
Details to check in the notice
- Which process applies: complaint, administrative penalty, discipline referral, or Notice of Proposal
- The service date and your 15-day window
- Both addresses for a hearing request: the registrar and the Tribunal
- Whether an immediate suspension is in effect
Rules and resources to consult
- New Home Construction Licensing Act, 2017, ss. 40–45, 53–63 and 75–82
- Regulations under the Act, including the code of ethics
- HCRA discipline and appeals committee information and Rules of Practice
- Licence Appeal Tribunal – General Service forms, rules and practice directions
Frequently Asked Questions
Is the HCRA the same as Tarion?
No. The HCRA licenses builders and vendors and enforces the NHCLA and its code of ethics. Tarion administers the new-home warranty program. A builder can face issues with both.
Can the discipline committee suspend my licence?
No. The discipline committee can order education, fines and costs (s. 57(4)). Suspension or revocation happens through a registrar’s proposal and, if you request one, a Licence Appeal Tribunal hearing (s. 43).
Will this be public?
Yes. The NHCLA requires the registrar to publish licensing actions and discipline outcomes (s. 82).
Sources
Statutory references are to the provisions listed below, as consolidated on e-Laws when this page was prepared.
- New Home Construction Licensing Act, 2017, S.O. 2017, c. 33, Sched. 1, ss. 40, 43, 45, 56–63, 75–77, 81–82 — e-Laws consolidation period beginning June 6, 2024; checked November 10, 2026.
- Licence Appeal Tribunal Act, 1999, s. 11 (NHCLA listed) — Checked November 10, 2026.
- HCRA, “Discipline & Appeals Committee” — Located November 10, 2026.
- HCRA, “If You Are the Subject of a Complaint” — Located November 10, 2026.