A home before it's built: the days to cancel, deposit protection and the builder's licence in four provinces

Tarion backs the new home warranty, including deposit protection, and the Home Construction Regulatory Authority (HCRA) licenses builders and vendors.

• Deposits on a freehold home (agreements on or after January 1, 2018): "Up to $60,000" for a sale price of $600,000 or less, and "10% of purchase price" "(to a maximum of $100,000)" above it.
• Deposits on a condominium unit: "up to $20,000".
• A delayed closing: "$150 per day for direct living expenses"; "The maximum amount of compensation under the warranty is $7,500."
• A new condo: buyers have "a 10-day cooling off period in which to rescind the agreement of purchase and sale of their condo", which "starts from the moment buyers have the purchase agreement, disclosure statement and this guide" (the Condominium Authority of Ontario's Condo Buyers' Guide).
• A new freehold home: the Ministry of Public and Business Service Delivery and Procurement introduced changes "to update the implementation date for the cooling-off period for buyers of new freehold homes" "and Ontario's new home information sheets and addenda requirements to January 1, 2028" (Tarion).
• The builder's licence: the HCRA's Ontario Builder Directory shows whether a builder or vendor is licensed and its published actions.

• 7 days to rescind: "a purchaser of the development unit may rescind the purchase agreement by serving written notice of the rescission on the developer within 7 days after the later of" the date of the agreement and the date the developer obtained the buyer's written acknowledgement of the disclosure statement (Real Estate Development Marketing Act, s. 21).
• The deposit: the developer "must promptly place the deposit with a brokerage, lawyer, notary public or prescribed person who must hold the deposit as trustee in a trust account in a savings institution in British Columbia" (s. 18(1)).
• Not the 3-day rule: British Columbia's 3 business day rescission period for resale homes, with its fee of 0.25% of the price, "does not apply to a contract of purchase and sale to which section 21 of the Real Estate Development Marketing Act applies" (Property Law Act, s. 42).
• The builder and the warranty: "In B.C., builders must be licensed by BC Housing and arrange for third-party home warranty insurance", the 2-5-10 warranty (2 years materials and labour, 5 years building envelope, 10 years structure). Its New Homes Registry shows homes registered "since November 19, 2007".

• The warranty: "One year for labour and materials", "Two years for delivery and distribution systems", "Five years for building envelope protection" and "10 years for major structural components", at "a minimum of $265,000 for a single family home" and "$130,000 for a unit in a condominium or other multi-family complex".
• Since when: "Every home built in Alberta since February 1, 2014, requires warranty coverage", and "All residential builders constructing new homes in Alberta since December 1, 2017, require a valid builder licence." Alberta's public registries show who is licensed and whether a home has warranty coverage.
• A new condo: "A purchaser may rescind a purchase agreement by providing written notice to the developer within 10 days of the later of" receiving the developer's documents and signing, and the developer "shall hold in trust all money" the purchaser pays until title is issued (Condominium Property Act, ss. 13 and 14).
• A new house: the required warranty covers defects; Alberta lists "Deposit protection insurance" among optional products, and says buyers "may also register a caveat on the title for deposits paid to the builder".

• Mandatory since 1999: the Régie du bâtiment du Québec says the plan "includes protection of your partial payment to the contractor (up to $50,000) and a warranty against construction defects"; Garantie de construction résidentielle (GCR) administers it.
• Which condos: GCR lists buildings with "quatre parties privatives superposées ou moins" (four or fewer private portions one above the other).
• The contractor: the RBQ's licence holders' repertory shows a contractor's licence, and GCR's directory of accredited businesses shows whether the contractor is accredited and the project registered.

• "The new deeming rule applies in respect of transactions occurring on or after January 1, 2023."
• A flipped property is a housing unit in Canada that "was owned by the taxpayer for less than 365 consecutive days prior to the disposition", unless a life event the CRA lists applies (among them a death, a separation, a new job or a serious illness).
• The profit "is fully taxable as business income" and "does not qualify for the 50-per-cent capital gains inclusion rate or the Principal Residence Exemption."

Beside the agreement, the site has its own public records: the applications filed for it, the permits issued, and its zoning. OfferDue's builder and project check reads them with the builder's licence and company records, and sets the agreement's deposit beside Tarion's protection.

• A sample builder and project check, for a made-up project.

• Are there planning applications on file for the home itself?Applications for this address
• What development applications are active near the home?Development applications within 300 m
• What building permits are on record for the home?Permits and renovations
• What zone is the home in, and what does the zone permit?Zoning
• What does the Official Plan designate the land as?Official Plan designation