Tarion Application Process for Contract and Freehold Homes Glossary & FAQs

Below are definitions of the key terms used in this document (not in alphabetical order). These defined terms are generally indicated throughout the document with capitalized letters.

No. Obtaining or renewing a licence from the HCRA does not authorize you to offer or agree to Sell a home(s), or to build a home(s). Those authorizations can only be obtained by completing the application process with Tarion (via BuilderLink online portal) and by receiving confirmation from Tarion that you may sell and build the home(s).

The authorization to offer or agree to Sell a home is called “Qualification for Enrolment (QFE) Confirmation”. The authorization to build a home is called “Enrolment Confirmation”. It is a prosecutable offence to offer to Sell, agree to Sell, or to build a home without the relevant confirmation(s).

Please refer to Registrar Bulletins 10-FH, 10-CH, 10-Condo for an overview of the application process for Freehold, Contract and Condo projects. 

You can also reach out to our Underwriting Department at underwriting@tarion.com to answer any questions about the application process or via phone at 1-877-982-7466 ext.3001 . 

Whether you are building or selling, you will require authorization from Tarion before you can proceed. Refer to RB 10 for additional information.

If you have any additional questions or concerns please contact underwriting@tarion.com or speak with your assigned Underwriter to assess the best next steps. 

Yes. Each home that you intend to Sell and build requires QFE Confirmation and Enrolment Confirmation, though you may apply for multiple homes on a single application. For clarity, QFE Confirmation and Enrolment Confirmation are not one-time authorizations that subsequently allow you to Sell / build a limitless number of homes. If you have used up all of your allocated units that you have received QFE and/or Enrolment Confirmation for, you will then be required to submit a new application for additional units.

Once you obtain QFE Confirmation for a home or Project, it is in place unless it is specifically revoked or suspended by Tarion (which may happen in exceptional cases where eg. there is a material change in risk). Tarion conducts regular reviews of homes that have received QFE Confirmation – typically annually – up until the home(s) have been completed and handed over to the purchaser(s).

If the number of homes you plan to Sell/build increases from what has previously been authorized by Tarion, you must advise Tarion and submit a new application for any homes that were not covered by a previous application.

It is our objective to assist you with a quick and seamless application process. Below are examples of circumstances that may result in delays. Please factor these into your project timelines as you work through your Tarion application process:

• Interview requirements;
• Reference checks;
• Site visits;
• Additional review of problematic warranty history;
• Missing or incomplete documentation; or
• Time required for you to satisfy Terms and Conditions such as providing security prior to receiving QFE Confirmation and commencing sales

We encourage you to contact underwriting@tarion.com or your assigned Underwriter to ensure you are aware of all the required documents and steps pertaining to your application. 

Once you receive your Notice of Proposal (NOP) of Conditions, the next step is to satisfy the Terms and Conditions outlined in the NOP. The Terms and Conditions found within the NOP of Conditions are broken down into three categories:

(1) Conditions of QFE: requirements you must satisfy before Tarion issues written QFE Confirmation for the home(s), which authorizes you to begin sale (offering/entering into purchase agreements);

(2) Conditions of Enrolment: requirements you must satisfy before Tarion issues written Enrolment Confirmation for the home(s), which authorizes you to begin construction; and,

(3) Specified Terms and Conditions: requirements that you must satisfy on an ongoing basis (ie. even after you receive QFE or Enrolment Confirmation).

The most common example of a Terms and Condition is to provide Tarion with security. Security may be required either as a Condition of QFE or Condition of Enrolment depending on the type of home proposed (e.g., Freehold or Condominium) as well as other risk factors assessed by Tarion.

After all the Conditions of QFE outlined in your NOP of Conditions have been satisfied (for example, you have provided the required security to Tarion in a format acceptable to Tarion), Tarion will issue written QFE Confirmation for the home(s) via email or mail. You can proceed to offer and enter into agreements of purchase and sale for home(s) that received QFE Confirmation.

After all the Conditions of Enrolment outlined in your NOP of Conditions have been satisfied, you may submit the homes for enrolment through BuilderLink, pay the applicable enrolment fees, and then Tarion will provide you with written Enrolment Confirmation which authorizes you to Commence Construction of the home(s). 

Note: Your NOP of Conditions may include a time-limited condition to eg. provide Tarion with security by a specific date. If you fail to satisfy any time-limited condition within the set amount of time provided in the NOP of Conditions, Tarion reserves the right to close your application. You may reapply or ask to reopen your application in the future when you are prepared to meet the time-limited condition. 

If you disagree with the Terms and Conditions proposed by Tarion within an NOP of Conditions, or wish to dispute a proposal by Tarion to refuse, suspend, or revoke QFE Confirmation, we encourage you to contact Tarion’s Underwriting department to discuss your concerns. We will further explain the basis for Tarion’s proposal and work with you to try to resolve your concerns. For example, if Tarion’s proposal relates to a lack of financial equity, it may be that Tarion’s proposal can be adjusted if you are able to provide additional financial information, bring in a third party guarantor to support your financial obligations, or reduce the number of homes you are proposing to Sell.

If you are unable to resolve your dispute through discussions with Tarion, you may appeal any Notice of Proposal issued by Tarion to the Licence Appeal Tribunal. An appeal must be filed within 15 days of receiving Tarion’s Notice of Proposal. The Notice of Proposal document will explain the steps required to initiate an appeal.

The NOP of Conditions letter can be found in BuilderLink or alternatively you can reach out to your assigned underwriter to obtain a PDF copy of the document.

You must have applied to HCRA before you can submit to an application to Tarion. Tarion will review your application materials but can only issue a Notice of Proposal once you have a valid active HCRA licence. For Tarion’s purposes, you must maintain an active Licence to obtain QFE Confirmation and Enrolment Confirmation. Please contact the HCRA at info@hcraontario.ca for more information about licensing and renewal.

You may start the QFE application process while your renewal application is pending, however Tarion will not issue a NOP of Conditions and you will not be able to receive QFE and Enrolment Confirmation until your licence renewal with the HCRA is finalized.

No. You must hold a valid HCRA licence and receive authorization from Tarion before you offer or agree to enter into a purchase agreement with a purchaser. Qualification for Enrolment (QFE) Confirmation must be received before offering or agreeing to Sell a home, and Enrolment Confirmation must be received before Commencing Construction. Note that the Notice of Proposal (NOP) of Conditions letter issued by Tarion does not constitute confirmation of QFE or Enrolment. The Notice of Proposal (NOP) of Conditions letter simply outlines the conditions that must be met to achieve confirmation, which is provided by Tarion in writing once conditions are met.

No. This type of home is referred to as a “Contract Home”, which stands in contrast to home(s) that are sold along with the underlying land via a purchase agreement. In order to offer and enter into a construction contract with an owner of land to build them a Contract Home, and to Commence Construction of the Contract Home, you must: hold an active Vendor and Builder licence with HCRA; apply to Tarion for Enrolment Confirmation; satisfy the Terms and Conditions issued by Tarion; and receive Enrolment Confirmation from Tarion. Once you receive Enrolment Confirmation you can offer/enter into a construction contract with an owner. Within 30 days of entering the construction contract with the owner, before commencing construction, you must inform Tarion of the address of the Contract Home and pay any applicable security. You must then enrol the Contract Home through BuilderLink before commencing construction. 

If the home hasn’t been genuinely occupied by the Vendor/Builder, then the Vendor/Builder must apply to Tarion to receive QFE Confirmation entering into a purchase agreement.

The test for genuine occupancy is highly fact-specific. Short term or part-time occupancy by a builder may not be enough to remove the home from warranty coverage, the requirement to obtain QFE Confirmation, and to enrol the home in the warranty program. We encourage you to speak with your legal advisors and contact Tarion before selling a home that you have previously occupied without first receiving QFE Confirmation.

For any home where your plans are uncertain, e.g., if you are building a home but are not sure if you will sell it in the future, you should send an email to ismy homecovered <ismy.homecovered@tarion.com> to determine if an application is required.

Prior to February 1, 2021, the application to Tarion was submitted annually, i.e., the annual number of homes was proposed on the application and Tarion issued a Terms and Conditions letter that was applicable for that year. You could then Sell or build the estimated number of homes, provided that you met the conditions outlined in the Terms and Conditions letter. Any homes that were not sold or built in that year would then need to be reapplied for or restated in the following year.

The post February 2021 application process is different because once QFE Confirmation is received, it stays in place until it is suspended or revoked. Another key difference is that the Notice of Proposal (NOP) of Conditions letters do not need to be explicitly accepted or signed to take effect. Once the NOP of Conditions is issued, you have 15 days to appeal the Terms and Conditions to the Licence Appeal Tribunal. If the conditions are not appealed within that timeframe, then they are considered accepted.

It is therefore very important to ensure that the correct Tarion contact is outlined in your application, as this individual will be receiving the Notice of Proposal (NOP) of Conditions letter for review. You may speed up the process by confirming acceptance of the conditions in writing prior to the 15-day deadline. This must be done by a signing officer of the company.

We recommend that you apply with the estimated number of homes you’re planning to build in that year. Once you receive QFE Confirmation for the home(s) on an application, the home(s) can be sold. They do not have to be sold within that year, e.g., if it takes 12, 18 or 24 months to Sell and build those homes, you do not have to reapply after you have confirmation. You can apply multiple times a year (if your plans change and you wish to Sell or build more homes). You do not necessarily need to apply annually and your submission of a Tarion application does not need to align with your HCRA licence renewal. Any Vendor with a valid HCRA licence can apply to Tarion at any time.

If sales/construction plans change and you wish to increase the number of homes, you will be required to submit a new application to Tarion.  You must receive QFE and Enrolment Confirmation from Tarion prior to Selling and building a new home. It is important to apply for new homes because you will not be permitted to  enrol new homes through BuilderLink if you have reached your previously confirmed enrolment limit. It is also a provincial offence to offer to Sell, agree to Sell, or build a new home without the requisite QFE and Enrolment Confirmation. It is therefore advisable to track your home balance on BuilderLink and to reach out to underwriting@tarion.com for any questions. Please allow for sufficient time for Tarion to process any new application. 

Your written Enrolment Confirmation(s) for home(s) can be viewed in BuilderLink.

If your NOP of Conditions specifies a home address that you are no longer planning to Sell or build or are looking to Sell or build the home at another location, you will need to advise Tarion as this is considered a material change. The same applies to any home(s) that you have already enrolled that later are subject to an address change. We would review your situation and depending on the changes, you may not need to reapply.

You will need to advise Tarion if you would like to build a different type of home(s) than what you specified on your application, as this is considered a material change. We would review your situation and depending on the changes, you may not need to reapply.

For any type of Condominium application, whether it’s a Common Element, Vacant Land, standard, or phased Project, you are required to fill out the Condominium Profile Form.

You should advise Tarion of any material changes to Principals, Directors, Officers or any Interested Persons by emailing underwriting@tarion.com. You should also advise the HCRA of these types of changes by emailing them at info@hcraontario.ca. You may have to complete new BuilderLink designate forms to ensure that the appropriate staff are designated to use different BuilderLink functions / receive certain correspondence from Tarion.

Any steps that Tarion may take when assessing an application depend on the specifics of the situation, and can include, but not be limited to, risk-based inspections, increased security, limits on the number of homes that may be sold/built, and generally any other customized conditions to appropriately mitigate risk. Tarion may refuse applications outright in exceptional cases.

If there is a merger of two separate companies, you will need to contact the HCRA to inform them of this change. From a warranty perspective however, the new company post-merger is responsible for maintaining the warranty obligations of any previous entities. Tarion may require additional information on how this will be facilitated. For example, we may require additional confirmation that the indemnities, Vendor/Builder Agreements and other statutory obligations can be met by the newco retroactively and on a go-forward basis. A merger, acquisition, or any other significant corporate change constitutes a material change and must be brought to the attention of both Tarion and HCRA well in advance. 

Only a licensed Vendor can Sell a home, and only a licensed Builder can build a home (though a single person or entity can hold both types of licenses). A person or entity who is licensed only as a Vendor, who wishes to build a home, must either become licensed as a Builder themselves, or partner with a separate licensed Builder who will be responsible for building the home.

Note: Contract Home Builders must hold both a Vendor and Builder Licence with the HCRA.

Contract Home Builders must also hold a Vendor licence because the Ontario New Home Warranties Plan Act deems a Builder of a contract home to be the “Vendor” who is responsible for providing the home’s statutory warranties.

Where the Vendor and the Builder are separate entities who plan to work together to Sell and build a home(s), the Vendor (as the warranty provider) submits the application for QFE and/or Enrolment to Tarion.

The Vendor must indicate in the application the name of the Builder who will build the proposed home(s). To assess the application, Tarion will require information from the applicant Vendor and the proposed Builder.

Tarion will respond to the application by issuing Terms and Conditions (in the form of an NOP of Conditions) to the Vendor. The Terms and Conditions must be satisfied by the Vendor unless the wording of the conditions specify otherwise. 

The Vendor must enrol the home(s) through BuilderLink and obtain Enrolment Confirmation (to be shared with the Builder, to indicate to the Builder that Tarion has authorized construction to commence). 

Only the Vendor can offer or agree to Sell the home(s) (i.e. offer or enter into purchase agreement and subsequently transfer title). Only the Builder can Commence Construction of the home(s) and act as the Builder throughout the course of construction.

Although the Vendor is the provider of the statutory warranties, the Builder’s performance in constructing the home(s) in compliance with the warranties will be tracked and considered by Tarion when assessing future applications that involve the Builder.

Where the Vendor and the Builder are separate entities who plan to work together to Sell and build a home(s), the Vendor (as the warranty provider) submits the application for QFE and/or Enrolment to Tarion.

The Vendor must indicate in the application the name of the Builder who will build the proposed home(s). To assess the application, Tarion will require information from the applicant Vendor and the proposed Builder.

Tarion will respond to the application by issuing Terms and Conditions (in the form of an NOP of Conditions) to the Vendor. The Terms and Conditions must be satisfied by the Vendor unless the wording of the conditions specify otherwise. 

The Vendor must enrol the home(s) through BuilderLink and obtain Enrolment Confirmation (to be shared with the Builder, to indicate to the Builder that Tarion has authorized construction to commence). 

Only the Vendor can offer or agree to Sell the home(s) (i.e. offer or enter into purchase agreement and subsequently transfer title). Only the Builder can Commence Construction of the home(s) and act as the Builder throughout the course of construction.

Although the Vendor is the provider of the statutory warranties, the Builder’s performance in constructing the home(s) in compliance with the warranties will be tracked and considered by Tarion when assessing future applications that involve the Builder.

To “enrol” a home involves logging into BuilderLink to provide Tarion with specifics about the home (eg. the address) so Tarion can properly track the home in its systems. In also involves paying the applicable enrolment fees.

One the home is properly enrolled in Tarion’s systems, and any other applicable Enrolment Conditions (as outlined in the NOP of Conditions) have been satisfied, Tarion provides you with written Enrolment Confirmation for the home. Enrolment Confirmation authorizes you to Commence Construction. 

These forms will be added to our website soon and they will be linked to the appropriate Registrar Bulletin 10. In the interim, please contact underwriting@tarion.com for a copy of the forms. It is recommended to submit applications via our BuilderLink platform where the majority of the forms and agreements can be completed online. 

Freehold and Contract Homes need to be enrolled any time before Construction Commences, and condominiums need to be enrolled 30 days prior to Commencing Construction. Enrolments are submitted through BuilderLink, and you must ensure all enrolment conditions in your NOP of Conditions are met including security requirements, and any other conditions that are applicable, including the enrolment fees. 

Yes. Commencing construction of a home(s) that has not received Enrolment Confirmation is a prosecutable offence under the Ontario New Home Warranties Plan Act. 

The Terms and Conditions indicated in your NOP of Conditions are specific to your situation, however, security is typically due to be paid upfront, before QFE (sales) or at the time of enrolment.

Tarion typically accepts a surety bond or a letter of credit in a Tarion-approved format. We can also accept cash security in the form of a certified cheque from a certified Canadian financial institution if it’s $250,000 CDN or less.

Registrar Bulletin 11 outlines the taking and releasing of security which depends upon Builder experience and the type of home. There are three different versions of Registrar Bulletin 11, depending on the type of construction.

The template for surety bonds is not currently available on   however, you can contact us at  underwriting@tarion.com and we can provide you with one.

Security submitted prior to Feb. 1 will follow the applicable Bulletin and your risk assessment would indicate how long we would hold security. Warranty performance is also considered, as are any material changes that may have occurred such as ongoing claims or issues that present risk to Tarion. We may also request additional financial information or updates before considering release of security.

The amount of security depends on your risk assessment score and other factors discussed in Registrar Bulletin 11, such as experience and the specifics of the home you are building (e.g., a high-value home). For more information on security assessments, please refer to the applicable version of Registrar Bulletin 11.

You must contact a surety provider, which can be recommended by a commercial broker. You may also reach out to Tarion’s Underwriting Department at underwriting@tarion.com for a template of the bond.