Application for Registration Information Sheet

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2 Application for Registration Information Sheet We encourage you to submit your application electronically via Tarion.com, where you can complete, pay and submit your application online. Once you have submitted your application online, you can sign-up for Tarion s BuilderLink, an electronic window into our systems that allows you to track the status of your application and accept your Conditions of Registration, if approval is granted. Alternatively, this Application for Registration and all documents may be submitted to: Tarion Warranty Corporation 5160 Yonge Street, 12 th Floor TORONTO, ON M2N 6L9 If at any time during your application process you have any questions, or for assistance with the application form, please contact the Licensing and Underwriting Department toll free at ext or via the Contact Us page at Tarion.com. Tarion is committed to providing an inclusive and accessible environment in which all members of the public have equal access to its services and are treated with dignity and respect. If you require Accommodation, please go to our website at Tarion.com or contact us at for assistance. Completing the Application All Applicants must complete Sections A to O on the Application for Registration form. PLEASE NOTE: Submission of an incomplete Application Package or missing documentation, will result in delaying the processing and potential approval of your application. Along with your Application for Registration and the $2,500 Application Fee* (HST exempt) you must also provide the following documents to support your application: 1. A copy of the completed and signed Vendor Agreement (if applying as a Vendor) 2. A copy of the completed and signed Builder Agreement (if applying as a Builder) 3. If you are applying as a Vendor only, or as a Builder only, provide a copy of the executed construction agreement between the Vendor and Builder 4. Copy of the Articles of Incorporation, if you are applying as an incorporated company, and/or if the Guarantor is a corporation 5160 Yonge Street 12 th Floor Toronto ON M2N 6L tarion.com

3 Application for Registration Information Sheet 5. Master Business Licence filed with the Ministry (if you will be using an Operating Name) 6. Shareholder Register, if the Applicant is a corporation 7. Initial Return/Notice of Change in Directors and Officers of the Applicant filed with the Ministry (for applicants that are corporation) 8. Guarantee and Indemnity Agreement completed and signed for each Guarantor 9. For each individual signing the Guarantee and Indemnity Agreement, or if you are applying as a Sole Proprietorship or Partnership, provide a completed Personal Net Worth Statement include supporting documents for each asset and liability listed, i.e. bank and investment statements, property tax bill for real estate held, externally prepared financial statements for businesses owned, etc. all supporting documents must clearly show the owner s name, date and current value, and must be no older than 6 months 10. If you are applying as an incorporated company, the most recent externally prepared Financial Statements, with signed engagement letter (Notice to Reader, Review or Audit Engagement) for the applicant, or the most recent Corporate Tax Return, including Schedules 100, 125 and If you are proposing to build Condominium units, the completed Condominium Project Profile and General Review Form 12. For proposed Condominium projects, please submit a copy of the Agreement of Purchase and Sale, Declaration and Disclosure Statement (draft documents acceptable) 13. A copy of the transcript (proof of course completion) for each Core Competency that you have completed. Alternatively, please complete the Equivalency Request form available at Tarion.com if you are requesting an equivalency for a competency 14. Based upon the type of organization you are applying as, please sign the correct area in Section O a. All applicants must complete the Date of Signing (Section O, Part 1) and have a Witness provide their Name and Signature (Section O, Part 2) b. If you are applying as a Corporation or Limited Partnership, sign and print your name in Section O, Part Yonge Street 12 th Floor Toronto ON M2N 6L tarion.com

4 Application for Registration Information Sheet c. If you are applying as a Sole Proprietorship, sign and print your name in Section O, Part 4 d. If you are applying as a Partnership or Joint Venture, each principal must sign and print their names in Section O, Part 5 As part of your application process, you should familiarize yourself with the Ontario New Home Warranties Plan Act and Builder Bulletins (accessible at Tarion.com), as they form part of the terms and conditions you will need to adhere to if your registration is approved. *Umbrella applicants, please contact Licensing & Underwriting toll-free at or ext for fee requirements. If you currently have another registration with Tarion, please proceed to complete the Application for Registration form and other documents. For all NEW applicants that are currently not registered, please read the below requirements for new applicants. Mandatory Core Competencies All new Vendor and/or Builder applicants proposing to build homes constructed under Part 9 of the Ontario Building Code must complete the Core Competencies listed below, in addition to Tarion s existing registration requirements. As of September 1, 2016, the Core Competencies are required as part of your Application for Registration with Tarion. If you are applying as a Vendor and/or Builder, all seven (7) Core Competencies are required. If you are applying as a Vendor only, five (5) Core Competencies are required; Building Codes and Construction Technology are excluded. You must provide Tarion with proof of completion for each Core Competency, or complete an Equivalency Request Form and provide all supporting documentation. Failure to provide supporting documents for Equivalency Request will result in your request being denied. Core Competency Business Planning and Management Financial Planning and Management Mandatory For All Applicants All Applicants 5160 Yonge Street 12 th Floor Toronto ON M2N 6L tarion.com

5 Application for Registration Information Sheet Project Management and Supervision Legal Issues in Housing Customer Service and Tarion Warranty Requirements Building Codes in Ontario Construction Technology All Applicants All Applicants All Applicants Vendor/Builder Applicants only Vendor/Builder Applicants only You can access further information, course listings and course providers for the Mandatory Core Competencies via Tarion.com. Tarion may grant exemptions for some of the education requirements on the basis of an applicant s prior experience and education. Exemptions will be considered for the following categories: o Applicants who were Principals, Officers, or Directors for five or more years with a registered builder; o Applicants who were employees engaged in the customer service, construction or business management of a registered builder, and who have five or more years in that capacity; o Applicants who have obtained comparable core competencies with another Canadian Warranty Program; o Applicants who have achieved a professional designation or obtained formal education in an area related to an area of competency; o Applicants who have achieved Ministry of Municipal Affairs and Housing recognition for competency in Part 9 of the Building Code. Exemption requests will be evaluated by Tarion on a case by case basis. If you think your experience and professional qualification may be eligible for an exemption, please complete the Equivalency Request Form and provide all supporting documentation. Failure to provide supporting documentation will result in your request being denied. Business Interview and Information Session New applicants are required to attend a Business Interview and Information Session after submitting their application. This will only be scheduled if the Core Competency requirements have been met, or an Equivalency Request form has been submitted and the equivalencies successfully granted Yonge Street 12 th Floor Toronto ON M2N 6L tarion.com

6 Application for Registration Information Sheet The purpose of the Business Interview and Information Session is to exchange information and establish an understanding of the expectations of each party. It includes a review of the applicant s planned business venture and their background, as it is our desire to understand your business proposal and your plans to make it successful. It also provides an overview of the applicant s responsibilities, timelines and customer service standard that you are expected to adhere to. Please prepare and submit the following information along with your application, or the latest, prior to your scheduled Business Interview date (you may documents to Licensing and Underwriting or your assigned Underwriting Coordinator): 1. Executive Summary, outlining the history of the applicant company. Include the Principals, Directors, Officers and management s resume/credentials (in detail). 2. Project Economics: budget/cash flow pro-forma; overhead costs; deposit schedule; assumptions; and equity. 3. Architectural plans or renderings with specifications. 4. Sample contract documents and forms, including the Agreement of Purchase and Sale, Schedule A or list of features, construction budget, sub-contractors construction contract, etc. 5. Market absorption/supply statistics for the applicable product/location. 6. Target Buyer Profile: Who is your customer and what niche are you going to fill? 7. Marketing material or marketing plan outlining the target market, business positioning and marketing strategy. 8. After sales service policy. 9. Cash flow and break-even analysis (source of funding for project). Should you have any questions or require assistance regarding the Business Interview, please contact either of the following individuals: Mike Hanas Andy Ferguson Mike.Hanas@Tarion.com Andy.Ferguson@Tarion.com ext ext Yonge Street 12 th Floor Toronto ON M2N 6L tarion.com

7 Application for Registration with Tarion Warranty Corporation We encourage you to submit your Application for Registration electronically via Tarion.com. After submitting your application online, you can signup for Tarion s BuilderLink, an electronic window into our systems that allows you to track the status of your application and accept the Conditions of Registration (if approval is granted). Alternatively, you can submit this application form, required documents and fee by mail to Tarion, at 5160 Yonge Street, 12th Floor, Toronto, ON, M2N 6L9. If you have any questions, please contact Licensing & Underwriting at ext or via the Contact link at Tarion.com. Please print all information clearly and keep a copy for your records. It is recommended you submit your application well before the date you want to start sales or construction. Submission of an incomplete application, WILL DELAY the processing and potential approval of your application. NOTE: As of September 1, 2016, new vendors/builders must complete the Core Competencies as outlined in Section L, or your application will NOT be accepted. Tarion is committed to providing an inclusive and accessible environment where all members of the public have equal access to its services, and are treated with dignity and respect. If you require an accommodation, please go to Tarion.com contact us at All references to a vendor/builder in this application may refer to a builder, a vendor, or both a vendor and builder, as defined below. Section A Please check (only one) the type of application that you are submitting. Are you planning to be a: Vendor and Builder - You will be both Selling and Building new homes This means you will sell and build homes not previously occupied (a new home) to an owner/purchaser and also includes a builder who constructs a home under a contract with the landowner (a contract home). As a Vendor and Builder you will undertake the performance of all the work and supply of materials necessary to construct a completed home, whether for the purpose of sale to a purchaser or under a contract with a landowner (i.e. contract/custom home). Vendor Only - You will only be Selling new homes This means you will only sell homes not previously occupied (a new home) to an owner/purchaser and will be transferring title of the unit(s) to the purchaser. A copy of the Agreement between you and the Builder must be provided. Builder Only - You will only be Building new homes This means you have entered into an agreement with a vendor to only build homes, and you will undertake the performance of all the work necessary to construct the completed home(s). A copy of the Agreement between you and the Vendor must be provided. Page 1 of 15

8 Section B Application for Registration with Tarion Warranty Corporation a. Applying as a: Corporation Limited Partnership Sole Proprietorship Partnership or Joint Venture b. Name of legal entity registering with Tarion (name appearing on the Agreement of Purchase and Sale, or Construction Contract) c. Operating Name (include a copy of the Master Business Licence filed with the Ministry) d. Is the Applicant a bare trustee (e.g. a holding company)? If yes, indicate the name(s) for which the Applicant is a bare trustee: e. Have you previously applied for registration with Tarion? If yes, please list builder name(s) or Tarion reference number(s): f. Do you currently have an Umbrella Group Name with Tarion? If yes, please indicate your Umbrella Group Name: Section C Contact Person Information (all correspondence from Tarion, including confidential correspondence, will be sent to this person) Name of Contact Person Address Office Phone Number Mobile Phone Number Page 2 of 15

9 Application for Registration with Tarion Warranty Corporation Section D Business Address (*Required Information) Number and Street Name Unit/Suite Number / City/Town Province Postal Code Phone Number Fax Number Address Website Section E Mailing Address (* this is where all correspondence from Tarion will be directed) Same as Business Address, or Number and Street Name Unit/Suite Number / City/Town Province Postal Code Phone Number Address Page 3 of 15

10 Application for Registration with Tarion Warranty Corporation Section F Principals: If the Applicant is a Corporation, Limited Partnership or Joint Venture, please list all Principals (owning at least 10% of the applicant) per the Shareholder Register. If you are applying as a Sole Proprietorship or Partnership, please complete the information for yourself or all of the partners. Please complete all applicable fields, and include the Date of Birth*, plus the Social Insurance Number* and/or Driver s License Number* for each individual. If you require more space, please attach a separate sheet with the following information for each additional Principal, or another copy of this chart. Principal #1 Principal #2 Principal #3 Principal #4 Full Legal Name of Principal % Ownership (at least 10%) Mailing Address (confidential correspondence will be sent here) Phone Number Address Date of Birth * Social Insurance Number * Driver s Licence Number * Page 4 of 15

11 Application for Registration with Tarion Warranty Corporation If any of the Principals above are a business organization, please provide the full legal name of the Principals or Partners holding at least 10% ownersh in that company * This information is used for the purpose of properly verifying and linking information of each Principal submitted by the Applicant. Section G Directors/Officers: If the Applicant is a Corporation, Limited Partnership or Joint Venture, please list all Directors and Officers of the applicant company per the Initial Return/Notice of Change in Directors and Officers filed with the Ministry. If you are applying as a Sole Proprietorship or Partnership, the Directors/Officers chart is not applicable. Please complete all applicable fields, and include the Date of Birth*, plus the Social Insurance Number* and/or Driver s License Number* for each individual. Please note, the Directors and Officers must correspond to the Initial Return/Notice of Change in Directors and Officers filed with the Ministry. Any omissions or additions in the Director/Officers, or missing information, may result in a delay in the processing or potential approval of your application. If you require more space, please attach a separate sheet with the following information for each additional Director and/or Officer, or another copy of this chart. * This information is used for the purpose of properly verifying and linking information submitted by the Applicant Page 5 of 15

12 Application for Registration with Tarion Warranty Corporation Director and/or Officer #1 Director and/or Officer #2 Director and/or Officer #3 Director and/or Officer #4 Director and/or Officer (Please indicate all that apply) Director Officer Director Officer Director Officer Director Officer Full Legal Name Mailing Address (all confidential correspondence will be sent here) Phone Number Address Date of Birth* Social Insurance Number* Driver s Licence Number* Page 6 of 15

13 Application for Registration with Tarion Warranty Corporation Section H Required Supporting Documents for the Principal, Director and/or Officer, Legal Entity, and Guarantor Corporation Initial Return/Notice of Change in Directors/Officers Articles of Incorporation for a Corporate Applicant Trust Agreement, if applicant is a bare trustee Shareholder Register Partnership or Joint Venture Limited Partnership Partnership or Joint Venture Agreement Agreement of Purchase and Sale Limited Partnership Agreement Limited Partnership Report (from the Ministry of Articles of Incorporation of the General Partner Consumer and Business Services) Agreement of Purchase and Sale Declaration Form 3 under Limited Partner Act Guarantor(s) and Indemnitor(s) Competed Guarantee and Indemnity Agreement Personal Net Worth Statement with Supporting Documentation for each individual Guarantor Articles of Incorporation for Corporate Guarantor(s) Reviewed Financial Statements for each Corporate Guarantor Section I Previous Bankruptcies and Insolvencies Has the Applicant, or any of its Principals, Directors and/or Officers: a. Ever filed for bankruptcy under the Bankruptcy Act? Yes No b. Ever been discharged from bankruptcy? (If Yes, please provide a copy of the bankruptcy discharge papers, showing date of discharge) Yes No c. Ever been granted an Arrangement under the Companies Credit Arrangement Act (CCAA)? Yes No Page 7 of 15

14 Application for Registration with Tarion Warranty Corporation d. Ever been party to a Consumer Proposal or to a Business Proposal under the Bankruptcy Act? (If Yes, please provide a letter of explanation and supporting documentation) Yes No Section J New Homes Under Construction or Sold Without a Tarion Registration Do you have any freehold homes/condominium units under construction, already completed and/or have already been sold, prior to being approved for registration with Tarion? Yes No If no, please proceed to Section K; If yes, please provide the following details: Number of Homes: Municipal Address(es): Municipality: Selling Price or Contract Value: Date of Closing or Occupancy (or expected date): Page 8 of 15

15 Application for Registration with Tarion Warranty Corporation Section K Construction/Sales Plans- Please indicate how many freehold/contract homes or condominium units that you plan to build and/or sell over the next 12 months. Freehold Construction Freehold Construction are homes sold under an Agreement of Purchase and Sale (land is not owned by the purchaser) Number of Units Average Selling Price Municipality Where Units Will be Built Contract Homes Contract Homes are constructed under a Construction Contract (on land owned by the homeowner) such as a custom home Number of Units Average Selling Price Municipality Where Units Will be Built Condominium Construction For Condominium Construction plans, please complete the Condominium Project Profile and General Review Form, and submit it along with your application Number of Units Number of Condominium Corporations Number of Units per Condominium Corporation Average Selling Price Municipality where the Project will be Built Page 9 of 15

16 Application for Registration with Tarion Warranty Corporation Section L Mandatory Core Competencies: All new Vendor and/or Builder applicants proposing homes constructed under Part 9 of the Ontario Building Code, must complete the Core Competencies, in addition to Tarion s existing registration requirements. The Core Competencies are required as part of your Application for Registration, and if not complete, your application will be returned. You can access further information, course listings and course providers for the Mandatory Core Competencies via Tarion.com If you are applying as a Vendor and/or Builder, all seven (7) Core Competencies are required. If you are applying as a Vendor Only, five (5) Core Competencies are required; Building Codes and Construction Technology are excluded.* You must provide Tarion with proof of completion for each Core Competency, or complete an Equivalency Request Form and submit all supporting documentation. Failure to provide supporting documents for Equivalency Request will result in your request being denied. Date Course Completed (mm/dd/yy) Course Name 1. Business Planning and Management Name of Course Provider Sole Proprietor/Partner or, Director/Officer who Completed Course Sole Proprietor/Partner, or Director/Officer with Equivalent Education and/or Experience** 2. Financial Planning and Management 3. Project Management and Supervision 4. Legal Issues in Housing 5. Customer Service & Tarion Requirements 6. Building Codes in Ontario* 7. Construction Technology* Page 10 of 15

17 Application for Registration with Tarion Warranty Corporation Section M Financial Information a. Bank or other Financial Institution: Name and Address: b. How do you plan to finance this project? (check all that apply) Personal Funds Lending Institution Name: Private Lender Other Specify: c. Deposits for Freehold Construction only i. Who will be holding the deposits taken from purchasers? (check all that apply) Applicant Your Lawyer (in trust) Real Estate Agent (in trust) Other Specify: ii. Average deposit(s) to be taken prior to closing: $ ii. Maximum total deposit to be taken prior to closing $ Page 11 of 15

18 Application for Registration with Tarion Warranty Corporation Section N Notice and Consent Any person completing and/or signing and/or submitting this form and any attachments or accompanying answers, schedules, documents, records, statements or returns, either written or oral, ( accompanying documentation ) is hereby notified that the Tarion Warranty Corporation ( Tarion ) may verify the information on this form or the accompanying documentation, and in so doing, may request or collect additional information from, communicate with, disclose any such information to government and non-government bodies (which may include trade associations, designated education organizations and providers, and past, present, and prospective employers). You are notified that any information so collected or communicated will be for purposes that include, but are not limited to: 1. Determining an applicant s eligibility for registration or continued entitlement to registration under the Ontario New Home Warranties Plan Act, and its regulations and including any amendments or successor legislation ( ONHWP Act ), ensuring compliance, under the ONHWP Act, dealing and/or handling complaints and inquiries under the ONHWP act; and 2. For any other purpose consistent with the administration of the ONHWP Act, consumer protection, protecting the public, and/or verification of an applicant s association or membership with trade/professional associations, registration, history, including status, dates, employer s name and business address. I understand and consent that as part of the above process, Tarion may, at any time and from time to time, make inquiries and/or obtain searches of government, regulatory, discipline, or law enforcement records and databases, a record of offences, a record of judgments, financial institution records, or consumer reports. I further understand and consent that, Tarion, may, at any time, and from time to time, during my registration cycle make additional inquiries and/or obtain additional searches of government, regulatory, discipline, or law enforcement records and databases, a record of offences, a record of judgments, financial institution records, or consumer reports. I authorize Tarion to conduct such investigations of the Applicant`s activities and make such inquiries and obtain credit reports as may be necessary for its determination of the Applicant`s ability to meet its obligations. I am aware that Tarion is obligated to disclose information in accordance with law and is bound by its Privacy Policy. By completing and signing or submitting this form and any of the accompanying documents, I consent to Tarion verifying, requesting, collecting, communicating, disclosing, using, and maintaining such information in the manner provided above. If you have any questions concerning the collection or disclosure or use of any information, please contact Tarion. Page 12 of 15

19 Application for Registration with Tarion Warranty Corporation Section O Declaration and Signatures I/we declare that the preceding information is correct and accurate. If registered, I/we accept and agree to abide by the provisions of the Ontario New Home Warranties Plan Act, Regulations, Builder Bulletins, the Vendor and/or Builder Agreements, and any Tarion policies currently in place or which may hereafter be adopted. I/we agree that all such provisions, regulations etc. are available to me/us for review on the Tarion website at Tarion.com, and that I/we have had the opportunity to review such. 1. Date of Signing: (All Applicants MUST provide the Date of Signing) Month Day Year 2. Witness: (All Applicants MUST provide a Witness) Print Name of Witness Signature of Witness 3. Corporation or Limited Partnership: (Sign here if you are applying as a Corporation or Limited Partnership) Print Name(s) of Authorized Signing Officer(s) Signature of Authorized Signing Officer(s) I/We Have Authority to Bind the Entity Page 13 of 15

20 Application for Registration with Tarion Warranty Corporation 4. Sole Proprietorship: (Sign here if you are applying as a Sole Proprietorship) Print Name of Sole Proprietor Signature of Sole Proprietor 5. Partnership or Joint Venture: (Sign here for all partners, if you are applying as a Partnership or Joint Venture) Print Name of All Partners Signature of All Partners We Have Authority to Bind the Entity Page 14 of 15

21 Application for Registration with Tarion Warranty Corporation Section P Checklist: Please include the following documents required to process your application. Submission of an incomplete application will delay the processing and potential approval of your application. Completed Application for Registration form Registration fee (please make cheque payable to Tarion Warranty Corporation) Completed Vendor Agreement (if applying as a Vendor only or both Vendor and Builder) Completed Builder Agreement (if applying as a Builder only or both Vendor and Builder) Construction Agreement between the Builder and Vendor, if they are different entities Completed and signed Guarantee and Indemnity Agreement for each guarantor Current financial statement of applicant and/or any corporate guarantors and indemnitors Updated Personal Net Worth Statement(s) and supporting documentation for individual guarantors and indemnitors Course Transcript (proof of successful course completion) and/or a completed Equivalency Request Form with supporting documentation for each Core Competency. Articles of Incorporation (if applying as a corporation, and/or if the guarantor is a corporation) Master Business Licence filed with the Ministry (if you have a different Operating Name) Shareholder Register showing the principals (if applying as a corporation) Initial Return/Notice of Change in Directors and Officers filed with the Ministry (if applying as a corporation) For Limited Partnerships, a copy of: i) Limited Partnership Agreement ii) Limited Partnership Report iii) Declaration Form 3 under the Limited Partner Act iv) Articles of Incorporation for General Partner v) Agreement of Purchase and Sale Completed Condominium Project Profile and General Review Form, and a copy of the Agreement of Purchase and Sale, Disclosure Statement and Declaration (if proposing a condominium project) Bankruptcy Discharge papers (if applicable) Page 15 of 15

22 Equivalency Request Form Equivalency Request Form Core Competencies Core Competency Business Planning and Management Name of Principal, Director, and//or Officer Residential Construction Experience: 5 Years with References Related Education. Degrees, Diplomas, Courses. Professional Designations Financial Planning and Management Project Management and Supervision Legal Issues in Housing Building Codes Construction Technology Customer Service & Tarion Requirements 5 years related industry experience is required for each equivalency requested. Related Education will be assessed against the minimum Core Learning Requirements and Level of Knowledge for each competency Assessment of equivalency may include an Interview and / or Technical Testing Vendors only require 5 Competencies; Vendors and Builders require 7 competencies All Equivalency Request Forms must be accompanied with supporting documentation. Failure to provide supporting documentation will result in your request being denied Yonge Street 12 th Floor Toronto ON M2N 6L tarion.com

23 Builder Agreement and Vendor Agreement Instructions for Completing the Builder Agreement and/or the Vendor Agreement If you are applying as a Builder (you intend to build new homes), you will need to complete the Builder Agreement. If you are applying as a Vendor (you intend to sell new homes), you will need to complete the Vendor Agreement. If you are intending to act as both a Builder (you intend to build new homes) and a Vendor (you intend to sell new homes), you will need to complete both the Builder and Vendor Agreements. Completing Page 1 of the Agreement 1. On the first line, enter the date that you are completing the Agreement. 2. On the second line, enter the name of the company (if you are applying as a corporation), the name of your partnership or joint venture, or your personal name (if you are applying as a sole proprietor). Note: The name here is the name that you are using to apply to Tarion with. 3. On the third line, enter the name of the City/Town where you or your company resides. Signing the Agreement 1. On Page 10 of the Builder Agreement and Page 11 of the Vendor Agreement, print the name you are using to apply to Tarion with on the Registrant Name line. 2. An authorized signing officer of a corporation, the sole proprietor, or partners must sign on the Registrant Signature line. This signature must be witnessed. 3. If the Registrant is a partnership or joint venture, all parties must sign and their signatures must be witnessed. If you require additional signature space, please use the open area on the right hand side of the signature page. 4. Have a witness print their name and provide their signature and address under the signature line. If you have a corporate seal, you may use it in lieu of a witness. If you have any questions, please do not hesitate to contact Tarion s Licensing and Underwriting department at ext. 3001, or by at L&U@tarion.com Yonge Street 12 th Floor Toronto ON M2N 6L tarion.com

24 THIS AGREEMENT made the day of, 20, B E T W E E N:, (Print the exact legal name of the Builder) of the City of, in the Province of Ontario (hereinafter referred to as the Registrant ); Tarion Warranty Corporation, a private, non-profit corporation, incorporated without share capital, pursuant to the laws of the Province of Ontario (hereinafter referred to as Tarion ) WHEREAS: BUILDER AGREEMENT 1. Tarion is a private, non-profit corporation designated by the Lieutenant Governor in Council to administer the Ontario New Home Warranties Plan Act, as amended from time to time (the Act ); 2. the Registrant applied to Tarion for registration as a builder under the Act; 3. Tarion grants registration conditional upon the Registrant executing this Builder Agreement (the Agreement ), which Agreement deals with the Registrant s rights and obligations as a builder under the Act, the regulations enacted thereunder, as amended from time to time (the Regulations ) and all applicable builder bulletins issued by Tarion from time to time (the Bulletins ); NOW THEREFORE IN CONSIDERATION OF the registration of the Registrant under the Act, and for other good and valuable consideration (the receipt and sufficiency of which is hereby expressly acknowledged), Tarion and the Registrant hereby confirm the veracity of the foregoing recitals and that same comprise an integral part of this Agreement, and agree with each other as follows: BUILDER AGREEMENT Page 1 of 10 Tarion

25 ARTICLE 1.0 APPLICATION AND REGISTRATION Authority of the Registrant to enter into the Agreement Commitment to act as a Builder only Commitment to true and accurate disclosure Commitment to submission of security, financial information and other documentation 1.1 The Registrant represents and warrants to Tarion that the Registrant has full capacity, power and authority to enter into this Agreement, holds all necessary licenses and permits required to carry on the business of constructing homes in the Province of Ontario and, if a corporation, is a duly organized and validly subsisting corporation under the laws of the Province of Ontario (or alternatively is a duly organized and validly subsisting extraprovincial corporation or federal corporation, and licensed to carry on business in the Province of Ontario). 1.2 The Registrant represents and warrants to Tarion that the Registrant will not act as a vendor unless the Registrant registers as a vendor and executes a Vendor Agreement with Tarion. 1.3 The Registrant further represents and warrants to Tarion that the information set forth in the application for registration of the Registrant under the Act, and in other documents furnished by the Registrant to Tarion in connection with such application, is true and correct in all material respects and does not omit to communicate any fact, circumstance or information that may have a material adverse impact on the Registrant s ability to fulfill its obligations under this Agreement, or that may reasonably have a material affect on the risk assessment undertaken (or to be undertaken) in connection with the registration (or continued registration) of the Registrant under the Act. 1.4 The Registrant shall, upon the request of Tarion and at the expense of the Registrant, furnish Tarion with such guarantees, indemnities, surety bonds, letters of credit, deposit trust agreements, undertakings, collateral charges and/or other security instruments, as Tarion may reasonably require in accordance with the Act and the Regulations, together with statements of personal net worth, bank statements, drivers licenses, birth certificates, articles of incorporation, sample signatures, corporate by-laws, financial statements and/or such other documentation, records and security as Tarion may reasonably require for the purpose of initial registration, renewal of registration and/or securing the obligations imposed upon the Registrant by the Act, the Regulations, this Agreement and/or the Bulletins. Between renewal dates, Tarion shall not require additional documentation or security from or on behalf of the Registrant, unless Tarion reasonably believes that intervening circumstances have arisen which may impair the Registrant s ability to build homes and/or carry out any warranty work. Use of credit information 1.5 The Registrant hereby authorizes Tarion to procure and utilize, from time to time, credit information in respect of the Registrant, and agrees that no action, claim or other proceeding shall be instituted or pursued against Tarion in respect of any damages BUILDER AGREEMENT Page 2 of 10 Tarion

26 incurred by the Registrant thereby, provided such credit information is not disclosed to any third party, except for credit reporting agencies to whom Tarion owes a duty of disclosure, and except as otherwise required by law. Builder s ongoing disclosure obligation 1.6 The Registrant shall be obliged to communicate to Tarion any fact, circumstance or information that may have a material adverse impact on the Registrant s ability to build homes and/or carry out any warranty work. Tarion s disclosure obligation 1.7 Tarion agrees to advise the Registrant, in writing, of all notices of claims or potential claims that Tarion receives from any purchaser(s) or homeowner(s) in respect of any home(s) constructed by or on behalf of the Registrant, in those circumstances where the Vendor of such home(s) is unable or unwilling to satisfy its warranty obligations. Tarion also agrees to provide the Registrant with a reasonable opportunity (as may be specified by the Act and/or the Regulations from time to time) to rectify or remedy any warrantable work prior to Tarion initiating any enforcement proceedings or remedial work. Termination of the Registrant s obligations 1.8 This Agreement and all obligations of the Registrant hereunder may not be unilaterally terminated by the Registrant, but rather, shall remain in full force and effect and continue to bind the Registrant, notwithstanding any expiry or revocation of the registration of the Registrant under the Act and notwithstanding any amendment, alteration or modification of the Act or the Regulations until the earlier of the date that: (i) all obligations and liabilities of the Registrant to Tarion have been fulfilled or complied with; or (ii) all applicable warranty or limitation periods have expired, with no claims having been filed with Tarion prior thereto; in respect of any homes enrolled (or that ought to have been enrolled) by the Registrant. Consent to transfer or assign the registration No unauthorized use of the registration number 1.9 The registration of the Registrant under the Act is not transferable or assignable by the Registrant, whether by way of power of attorney, sale, amalgamation or otherwise, without prior written consent of Tarion The Registrant shall not permit the use of the Registrant s registration number by any other party save and except by a registered vendor who has entered into a Vendor Agreement with Tarion, and without limiting the generality of the foregoing, the Registrant shall immediately report the use of the Registrant s registration number by any other party to Tarion upon becoming aware of same. BUILDER AGREEMENT Page 3 of 10 Tarion

27 Designation as Registered Builder 1.11 During the term of the registration of the Registrant under the Act, the Registrant shall be entitled to hold itself out as a Registered Builder. ARTICLE 2.0 LIABILITY AND INDEMNITY Warranty obligations during the warranty periods Obligations of Registrant and Tarion for major structural defects Obligations of Registrant if acting as a vendor 2.1 It is understood and agreed that where the Registrant builds a home for or on behalf of a vendor, whether or not such vendor is registered under the Act, then the Registrant shall be responsible for fulfilling each and every obligation imposed upon the Registrant by the Act, the Regulations, this Agreement and any Bulletins, in respect of the construction of such home (and completion items) for which the Registrant has received payment, and the Registrant shall indemnify and save Tarion harmless from and against all losses, claims, costs, damages and/or liabilities whatsoever heretofore or hereafter suffered or incurred by Tarion resulting from (or arising out of) non-performance or inadequate performance of such work, in whole or in part, provided written notice of a claim against the Registrant (or in respect of any home enrolled or that ought to have been enrolled by the Registrant) has been given to Tarion within the relevant warranty period(s). This paragraph shall not limit the right of Tarion to enforce obligations owed by the vendor of such home to Tarion. 2.2 Without limiting the generality of the foregoing, it is understood and agreed that the Registrant shall indemnify and save Tarion harmless from and against all losses, claims, costs, damages and/or liabilities whatsoever heretofore or hereafter suffered or incurred by Tarion resulting from (or arising out of) any major structural defect in any home enrolled (or that ought to have been enrolled) by the Registrant, all in accordance with the Act and Regulations. 2.3 It is further understood and agreed that in the event the Registrant acts as a vendor without registering with Tarion as a vendor (and without executing a Vendor Agreement) then the Registrant shall indemnify and save Tarion harmless from and against all losses, claims, costs, damages and/or liabilities whatsoever heretofore or hereafter suffered or incurred by Tarion resulting from (or arising out of) any failure to perform or fulfil the obligations that the Registrant would have been obliged to fulfil had the Registrant registered as a vendor with Tarion and executed a Vendor Agreement with Tarion. Enforcement of obligations 2.4 Tarion shall not be obliged to proceed against the vendor of any home enrolled (or that ought to have been enrolled) in respect of which the Registrant acted as a builder, prior to proceeding to enforce the obligations of the Registrant under this Agreement. Preservation of rights and claims against others 2.5 The Registrant shall preserve all assignable rights and claims that the Registrant may have against manufacturers, suppliers, vendors, builders, contractors, sub-contractors and others in respect of any BUILDER AGREEMENT Page 4 of 10 Tarion

28 major structural or other construction defect(s), or with respect to any contravention of the Ontario Building Code, in respect of any homes enrolled (or that ought to have been enrolled) by the Registrant, and in those circumstances where the Registrant is not diligently enforcing or pursuing such rights and claims, and to the extent permitted by law, the Registrant shall, forthwith upon the request of Tarion, assign and transfer all such rights and claims to and in favour of Tarion, and shall execute and deliver such assignments and other instruments and do such acts and things as Tarion may reasonably require in order to enable Tarion to prosecute and enforce such rights and claims as fully and effectually as the same could be prosecuted and enforced by the Registrant. Administration fee 2.6 The Registrant shall pay to Tarion an administration fee equivalent to fifteen (15%) per cent (or such other per cent as may be stipulated from time to time by the Regulations) of each amount paid out by Tarion to any purchaser(s), homeowner(s) or third party contractor(s)/consultant(s) in respect of the obligations imposed upon the Registrant by the Act, the Regulations, this Agreement and/or the Bulletins. Interest on debt 2.7 The Registrant shall pay to Tarion interest on any amounts owed to Tarion by the Registrant by virtue of the Act, the Regulations, this Agreement and/or the Bulletins, which interest shall accrue at the rate of eighteen (18%) per cent per annum, calculated annually, not in advance (or such other interest rate as may be stipulated from time to time by the Regulations) and accruing from and after the respective date(s) that any amount(s) is/are so due or owing to Tarion, to and until the date that all such amounts (together with all interest accrued thereon as aforesaid) have been fully paid or remitted to Tarion. Binding nature of the Agreement 2.8 This Agreement shall extend and enure to the benefit of the successors and assigns of Tarion and shall be binding upon the Registrant and the heirs, estate trustees, legal representatives, successors and permitted assigns of the Registrant. ARTICLE 3.0 ONGOING TERMS AND CONDITIONS OF REGISTRATION Access to inspect and copy relevant books and records 3.1 Upon reasonable prior notice the Registrant shall allow Tarion free access, during normal business hours, to inspect (and make copies of all relevant portions of) the Registrant s books and records in respect of the construction of homes enrolled (or that ought to have been enrolled) by the Registrant to ensure compliance with the Act, the Regulations, this Agreement and/or the Bulletins. Provision of documents 3.2 The Registrant shall, at the Registrant s expense and upon the request of Tarion, furnish to Tarion copies of all purchase agreements, construction contracts, insurance contracts, construction reports and such other documents in respect of any homes enrolled (or that ought to have been enrolled) by the BUILDER AGREEMENT Page 5 of 10 Tarion

29 Registrant and which are in the Registrant s possession or control, as Tarion may reasonably require from time to time. Limits on construction 3.3 The Registrant shall not commence (or cause to be commenced) the construction of: (i) any home in excess of the maximum number permitted by Tarion, (if any) to be constructed by the Registrant; or (ii) any home of any class the construction of which has been restricted by Tarion; without obtaining the prior written consent of Tarion. Written notice in advance of inspections Obligation for annual renewal of registration Obligation to enrol freehold homes Obligation to enrol condominium units 3.4 The Registrant shall provide to Tarion written notice of the completion of any stage of construction in respect of any homes enrolled (or that ought to have been enrolled) by the Registrant, as specified by Tarion as a condition of the registration of the Registrant, in order to allow for whatever inspections Tarion may wish to have carried out with respect to same. 3.5 The Registrant shall annually apply for the renewal of its registration under the Act and shall pay the renewal fee as prescribed from time to time by Tarion, notwithstanding the delivery or non-delivery to the Registrant of the prescribed renewal application form. 3.6 The Registrant shall enrol each home to be constructed by the Registrant, other than condominium dwelling units, by submitting a completed enrolment form and paying the enrolment fee as prescribed from time to time by Tarion forthwith upon issuance of a building permit in respect of such home. 3.7 If the Vendor has not already done so, the Registrant shall enrol each condominium project and each condominium dwelling unit therein to be constructed by the Registrant by submitting a completed enrolment form and paying the enrolment fee as prescribed from time to time by Tarion not less than thirty (30) days prior to the earlier of: (i) commencement of construction of such condominium project; or (ii) the issuance of a full or partial building permit in respect of such condominium project. Provision of documents prior to construction 3.8 Without limiting the obligations of the Registrant to Tarion arising under section 1.4 hereof, the Registrant shall, prior to commencing construction of any home, furnish to Tarion such documentation, agreements and security as Tarion may require in order to secure the performance and fulfillment of the Registrant s obligations and BUILDER AGREEMENT Page 6 of 10 Tarion

30 liabilities to Tarion arising under the Act, the Regulations, this Agreement and/or the Bulletins. Compliance with Builder Bulletins Notification of business changes to Tarion Term and condition of registration 3.9 The Registrant shall diligently comply with the provisions of the Bulletins issued by Tarion from time to time in accordance with the Act and the Regulations, where applicable to the Registrant, provided Tarion has given the Registrant reasonable prior notice of the provisions of the Bulletins. Tarion confirms and agrees that any Bulletins issued shall not have retroactive effect with respect to any home(s) under construction as at their respective issue dates, unless otherwise required pursuant to any applicable judicial ruling or statutory provision The Registrant shall notify Tarion in writing of any change in the mailing address or facsimile number of the Registrant, any change in the members of (or partners in) the Registrant, and/or any change in the officers, directors or shareholders of the outstanding voting shares of the Registrant, within fifteen (15) days after the date of any such change Compliance with the provisions of this Agreement shall form a term and condition of the registration of the Registrant under the Act. ARTICLE 4.0 ADMINISTRATIVE MATTERS 4.1 Reserved Notice by Registrant or Tarion Tarion reporting of Registrant s performance 4.2 Any notice desired or required to be given by either of the parties hereto to the other shall be conclusively deemed to have been sufficiently given if delivered by ordinary mail, hand/courier or by telefax only on business days (excluding Saturdays, Sundays and statutory holidays), and shall be deemed to have been received on the fifth business day after any such notice has been mailed/posted, or on the day that same has been delivered by hand/courier or telefaxed, on the express understanding that any notice delivered by hand/courier or telefaxed after 4:30 p.m. shall be deemed to have been received on the next business day following the date of such delivery or such telefax transmission (as the case may be), and provided further that if telefaxed, a confirmation of such telefax transmission must be received by the transmitting party at the time of such transmission, otherwise same shall be deemed not to have been properly or sufficiently telefaxed to the intended party. In the case of the Registrant, any notice given by Tarion shall be delivered to the Registrant s address or telefax number as specified in this Agreement or at such other address or telefax number as the Registrant may, from time to time, designate by way of written notice received by Tarion. 4.3 The Registrant hereby authorizes Tarion to report on the Registrant s performance and/or compliance status in respect of BUILDER AGREEMENT Page 7 of 10 Tarion