A buyer is considering a new house from a small company that advertises homes for sale in a rural subdivision. Under s. 37 of the New Home Construction Licensing Act, 2017, what must the company hold before it may offer to sell a new home?
Correct Answer
A) A vendor licence issued by the Home Construction Regulatory Authority
Section 37(1) of the New Home Construction Licensing Act, 2017 says no person may act as a vendor, offer to sell a new home or sell one unless licensed as a vendor, and s. 37(2) requires a builder licence to construct a new home. The Home Construction Regulatory Authority (HCRA) licenses and regulates new home builders and vendors, and buyers can check the Ontario Builder Directory.
Why This Is the Correct Answer
Section 37(1) requires a vendor licence to offer or sell a new home, and the HCRA is the regulatory authority that issues it.
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