Protection for Owners and Purchasers of New Homes Act, 2017, S.O. 2017, c. 33, Sched. 2 (Consolidation Period: From July 14, 2020 )

• Jurisdiction: Ontario
• Coming into Force: 14 July 2020
• Status: current

Protection for Owners and Purchasers of New Homes Act, 2017

S.o. 2017, chapter 33
Schedule 2

Consolidation Period: From July 14, 2020 to the e-Laws currency date.

Note: THIS ACT IS NOT YET IN FORCE. It comes into force on a day to be named by proclamation of the Lieutenant Governor.

Last amendment: 2020, c. 14, Sched. 5, s. 33 (1-8).

CONTENTS

Part I
INTERPRETATION and Application

Purposes

1 The purposes of this Act are,

(a) to establish strong warranties and other measures of protection for purchasers and owners of new homes for residential purposes; and

(b) to promote the construction in Ontario of properly built new homes for residential purposes.

Definitions

2 (1) In this Act,

“administrative agreement” means the agreement described in subsection 6 (1); (“accord d’application”)

“builder” means, subject to the prescribed requirements or restrictions, if any, a person who arranges for, manages or undertakes the construction of a new home or who agrees to do any of those things, whether the person is acting,

(a) for the purposes of selling or transferring the home, as prescribed,

(b) under a contract with a vendor,

(c) under a contract with an owner, or

(d) in the prescribed circumstances; (“constructeur”)

“claim” means a claim for compensation out of the guarantee fund in respect of a new home; (“réclamation”)

“common elements” means all the condominium property except the condominium units; (“parties communes”)

“common elements condominium corporation”, “common expenses” and “common interest” have the same meaning as in the Condominium Act, 1998; (“association condominiale de parties communes”, “dépenses communes”, “intérêt commun”)

“condominium corporation” means a corporation as defined in subsection 1 (1) of the Condominium Act, 1998; (“association condominiale”)

“condominium declaration” means a declaration as defined in subsection 1 (1) of the Condominium Act, 1998; (“déclaration de condominium”)

“condominium property” means property as defined in subsection 1 (1) of the Condominium Act, 1998; (“propriété condominiale”)

“condominium unit” means a unit as defined in subsection 1 (1) of the Condominium Act, 1998; (“partie privative de condominium”)

“delegated provisions” means the provisions of this Act and the regulations that the Lieutenant Governor in Council has designated as such under subsection 5 (2); (“dispositions déléguées”)

“Director” means the Director appointed under subsection 39 (1); (“directeur”)

“employ” means to employ, appoint, authorize or otherwise arrange to have another person act on one’s behalf, including as an independent contractor; (“employer”)

“guarantee fund” means the guarantee fund continued by subsection 49 (1); (“fonds de garantie”)

“information sharing agreement” means any of the agreements described in subsection 7 (3); (“accord d’échange de renseignements”)

“inspector” means an inspector appointed under subsection 55 (2) or the registrar acting as an inspector; (“inspecteur”)

“investigator” means an investigator appointed under subsection 57 (1); (“enquêteur”)

“licensee” means the holder of a licence issued under the New Home Construction Licensing Act, 2017; (“titulaire de permis”, see also “agréé”)

“Minister” means the Minister of Government and Consumer Services or any other member of the Executive Council to whom the responsibility for the administration of this Act is assigned under the Executive Council Act; (“ministre”)

“new home” means, subject to the prescribed requirements or restrictions, if any, any of the following property and any structure or appurtenance used in conjunction with it:

1. A building that is a residential dwelling, whether detached or attached to one or more other buildings by one or more common walls.

2. A residential dwelling in a building with more than one and less than the prescribed number of residential dwellings, all of which are under the same ownership.

3. In the case of a condominium corporation that is not a common elements condominium corporation,

i. a condominium unit that is a residential dwelling, including the common elements in respect of which the unit has an appurtenant common interest as described in the condominium declaration of the corporation, and

ii. the property owned by the corporation.

4. In the case of a common elements condominium corporation,

i. a parcel of land mentioned in subsection 139 (1) of the Condominium Act, 1998 to which a common interest is attached and that is described in the condominium declaration of the corporation, including the common elements in respect of that common interest, unless the parcel of land is not a residential dwelling, and

ii. the property owned by the corporation.

5. Any other prescribed residential dwelling; (“logement neuf”)

“officer” includes,

(a) the chair and any vice-chair of the board of directors, the president and any vice-president, the secretary and assistant secretary, the treasurer and assistant treasurer and the general manager and assistant general manager of a corporation or the warranty authority,

(b) a partner or general manager and assistant general manager of a partnership,

(c) any other individual designated as an officer by by-law or resolution of an organization,

(d) any other individual who performs functions normally performed by an individual occupying an office described in clause (a), (b) or (c), and

(e) any other prescribed individual; (“dirigeant”)

“owner” means, subject to the prescribed requirements or restrictions, if any, a person who,

(a) first acquires an interest or right in a new home from a vendor,

(b) for the purposes of a new home built under a contract with a person other than a vendor, is the owner of the land who has entered into the contract with the builder, or

(c) a prescribed successor to the person described in clause (a) or (b); (“propriétaire”)

“owner-builder” means, subject to the prescribed requirements or restrictions, if any, an individual who constructs or manages the construction of a residential dwelling for the individual’s personal use and occupation and who meets the prescribed requirements, if any; (“constructeur-propriétaire”)

“Plan” means the Ontario New Home Warranties and Protection Plan continued by section 40; (“Régime”)

“prescribed” means prescribed by the regulations; (“prescrit”)

“regulations” means regulations made under this Act; (“règlements”)

“regulatory authority” has the same meaning as in the New Home Construction Licensing Act, 2017; (“organisme de réglementation”)

“Tribunal” means the Licence Appeal Tribunal established under the Licence Appeal Tribunal Act, 1999 or whatever other tribunal is prescribed; (“Tribunal”)

“vendor” means, subject to the prescribed requirements or restrictions, if any, the person who sells or transfers, as prescribed, the prescribed property interest or right of the person in a new home to an owner, whether or not the person is a builder who builds the home under a contract with the owner; (“vendeur”)

“warranty authority” means the corporation that the Lieutenant Governor in Council has designated as such under subsection 5 (1). (“organisme de garantie”)

Interested person

(2) For the purposes of this Act, a person shall be deemed to be an interested person in respect of another person if the person is associated with the other person or if, in the opinion of the registrar,

(a) the person has or may have a beneficial interest in the other person’s activities;

(b) the person exercises or may exercise control either directly or indirectly over the other person; or

(c) the person has provided or may have provided financing either directly or indirectly for the other person’s activities.

Associated persons

(3) For the purposes of this Act, one person is associated with another person in any of the following circumstances:

1. One person is a corporation of which the other person is an officer or director.

2. One person is a partnership of which the other person is a partner.

3. Both persons are partners of the same partnership.

4. One person is a corporation that is controlled directly or indirectly by the other person.

5. Both persons are corporations and one corporation is controlled directly or indirectly by the same person who controls directly or indirectly the other corporation.

6. Both persons are members of the same voting trust relating to shares of a corporation.

7. Both persons are associated within the meaning of paragraphs 1 to 6 with the same person.

Owner of common elements

(4) For the purposes of Parts III and IV, a condominium corporation shall be deemed to be the owner of the common elements in the corporation.

Claim re common elements, etc.

(5) For the purposes of Part IV and despite subsection (4), an owner who is not the condominium corporation described in that subsection may, in the circumstances that are prescribed, make a claim to the warranty authority with respect to the common elements or the property owned by the corporation that is a new home under subparagraph 3 ii or 4 ii of the definition of that term in subsection (1).

Crown bound

3 Subject to the prescribed restrictions, if any, this Act binds the Crown.

Act prevails

4 This Act applies despite any agreement to the contrary.

Part II
ADMINISTRATION

Delegation

Designation of warranty authority

5 (1) The Lieutenant Governor in Council may, by regulation, designate a not-for-profit corporation without share capital incorporated under the laws of Ontario as the warranty authority for the purposes of this Act.

Delegated provisions

(2) Subject to subsection (3), the Lieutenant Governor in Council may, by regulation, designate provisions of this Act and the regulations, except for this Part and sections 68, 69 and 70, as the delegated provisions.

Restriction

(3) In a regulation mentioned in subsection (2), the Lieutenant Governor in Council may restrict the...