{"id":891,"slug":"rule-buyer-search-obd-before-signing-not-listed-means-unlicensed","title":"RULE: Buyers should search the Ontario Builder Directory before signing any Agreement of Purchase and Sale; not listed = unlicensed = walk away","kind":"rule","scope":"business","status":"current","audiences":["kevin","smb-owner","candid-team"],"topics":["gc-vertical","public-registries","regulatory-signals"],"reference_body":"**Rule:** Every Ontario new-home buyer should search the **Ontario Builder Directory at obd.hcraontario.ca** before signing any Agreement of Purchase and Sale. **If the builder is not listed, do not buy from them — full stop.**\n\nHCRA's own plain-language guidance: *\"If a builder is not licensed, do not buy from them.\"*\n\n**Source:** <https://www.hcraontario.ca/blog/2022/03/15/the-obd-step-1-in-choosing-a-new-home-builder/>\n\n**Confidence:** Verified.\n\n**The 10-step buyer workflow:**\n1. Get the **exact legal entity name** from the APS — not just the marketing brand.\n2. Search the OBD by legal name, operating name, licence number, **and** principal name (see [[obd-search-workflow-buyer-due-diligence]]).\n3. Confirm \"Licensed\" status with no expired/suspended flag and an expiry date in the future.\n4. Open the **Regulatory Activities and Enforcement tab.** Read every charge, conviction, NOP, compliance order, suspension, revocation, and Discipline outcome.\n5. Apply the **Insolvency Status filter.**\n6. Review the **Tarion Warranty Overview tab** — claims paid, chargeable conciliations, per-property complaints.\n7. Review **Properties / Condo Projects** — cancellations and the reasons for them.\n8. Search by **principal name** to surface related companies that may carry the real track record (Albion → Dynasty).\n9. Confirm **Tarion enrolment for the specific home** via \"Confirm Your Home's Warranty\" on the OBD homepage.\n10. Verify the licence number on the builder's marketing matches the OBD.\n\n**Red flags:** Builder not listed; \"Refused/Suspended/Revoked\" status; restrictive conditions; high chargeable-conciliation count; recent receivership against related entities; shared-principal companies with prior convictions; pressure to sign deposit-cancellation amendments.\n\n**For Candid client work:** This workflow is the canonical reason a builder client should *want* their HCRA licence number prominently displayed and linked to the OBD on their own site — see [[rule-display-hcra-licence-number-link-to-obd-on-builder-sites]]. A buyer who finds a clean record on the OBD via the builder's own footer link converts faster than a buyer who finds it on the AG report.","rationale_body":"The single highest-leverage step a buyer can take. Both for buyer-facing content and as the backbone of the case to display the OBD link on builder websites.","metadata":null,"links":{"outgoing":[{"slug":"ontario-builder-directory-obd-public-registry","title":"Ontario Builder Directory (obd.hcraontario.ca) — public registry showing licence status, homes built, Tarion claims, charges, convictions, discipline","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"obd-search-workflow-buyer-due-diligence","title":"OBD search workflow — search by legal name AND principal name; umbrellas and Phoenix applications hide history under marketing brands","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"tarion-plus-hcra-dual-gate-requirement","title":"HCRA + Tarion are two distinct gates — an Ontario new-home builder needs both to legally build or sell","kind":"rule","scope":"business","link_type":"depends-on"},{"slug":"auditor-general-2025-hcra-99pct-approval-1526-backlog","title":"Auditor General 2025 report on HCRA: 99%+ approval rate (including 2,026 of 2,042 who failed credit), 1,526 complaint backlog, 419-day avg close","kind":"reference","scope":"business","link_type":"relates-to"}],"incoming":[{"slug":"research-brief-hcra-ontario-may-2026","title":"Research brief: Ontario Home Construction Regulatory Authority (HCRA) — definitive reference (May 2026)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"rule-display-hcra-licence-number-link-to-obd-on-builder-sites","title":"RULE: Every Candid builder-client site must display HCRA licence number(s) in the footer of every page and link directly to the builder's OBD profile","kind":"rule","scope":"business","link_type":"relates-to"}]},"created_at":"2026-05-24T13:50:00.868Z","updated_at":"2026-05-24T13:50:00.868Z"}