HCRA ISSUES OVER $170,000 IN PENALTIES TO UNLICENSED BUILDERS AND SELLERS

Regulatory action reaffirms commitment to protecting consumers

TORONTO, July 8, 2025 /CNW/ - The Home Construction Regulatory Authority (HCRA) has issued more than $170,000 in administrative penalties to two unlicensed builders and sellers in Guelph and Tillsonburg. The penalties stem from investigations into illegal building and selling, and are part of the HCRA's broader strategy to combat illegal activity and protect homebuyers.

Administrative penalties are financial penalties imposed for violations of the New Home Construction Licensing Act, 2017 and the Ontario New Home Warranties Plan Act. In these two cases, violations included selling a new home without a licence, failing to enrol a new home in the province's warranty plan, and acting as a builder while unlicensed.

"Administrative penalties are a key enforcement tool to hold illegal actors accountable and uphold the rules in place to protect consumers," says Wendy Moir, the HCRA's Chief Executive Officer and Registrar. "Whether it's selling a new home without a licence or advertising as a builder while unlicensed, illegal building and selling misleads consumers and can leave them at higher risk for defects in their new homes and with limited warranty protection if something goes wrong."

The largest penalty – over $165,000 – was issued to Jacob Hiebert for selling a new home in Tillsonburg without being licensed and without enrolling the home in the warranty plan. Without these protections, homebuyers are left vulnerable. Enforcement in cases like this is essential to ensure that those who operate illegally are held accountable and do not profit at the expense of consumers.

The HCRA also issued a penalty of $5,978 to Destination Estates Ltd. in Guelph for acting as a builder while unlicensed. The company actively promoted new home construction services online, misleading consumers into believing it was working with licensed professionals. Such conduct not only puts homebuyers at risk — it undermines trust in the sector and the protections that Ontario's licensing system is designed to uphold.

These enforcement actions reflect the HCRA's commitment to accountability, consumer protection, and the integrity of Ontario's new homebuilding sector.

"These penalties send a clear message: those who operate outside the law will face serious consequences," says Moir. "The HCRA will not tolerate violations that put consumers at risk or undermine fair competition in the marketplace. We urge all homebuyers to verify that their builder or seller is licensed using the Ontario Builder Directory."

About the HCRA

The Home Construction Regulatory Authority is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders.

In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and hosts the Ontario Builder Directory – the authoritative source of background information about each of Ontario's 7,000 new home builders and sellers.

SOURCE Home Construction Regulatory Authority (HCRA)

Tess Lin, [email protected]