Ontario HCRA/Tarion Registered Builder Licensing
Exam Fundamentals Questions AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A
2026|INSTANT DOWNLOAD PDF
1. Which of the following best describes the primary role of
the Ontario Home Construction Regulatory Authority (HCRA)?
A. Inspecting homes after construction
B. Licensing and regulating builders and vendors
C. Setting mortgage rates for new homes
D. Providing insurance to homeowners
• Rationale:
o A. HCRA does not inspect homes; that is usually done
by municipal inspectors.
o B. Correct – HCRA licenses and regulates builders to
protect home buyers.
o C. Mortgage rates are set by banks, not HCRA.
o D. Insurance provision is through private insurers, not
HCRA.
2. What is the minimum warranty coverage a builder must
provide under Tarion for a newly constructed home?
A. 1 year for materials and labor
B. 2 years for major structural defects
,C. 7 years for major structural defects
D. 10 years for all defects
• Rationale:
o A. 1 year covers certain defects but not major
structural.
o B. 2 years is coverage for certain systems but not
structural.
o C. Correct – Tarion mandates 7 years for major
structural defects.
o D. 10 years is not a standard coverage period under
Tarion.
3. Under Ontario law, which of the following is required for a
builder to be registered with HCRA?
A. Proof of financial solvency
B. Proof of completion of a builder licensing course
C. Criminal record check
D. All of the above
• Rationale:
o A. Financial solvency ensures the builder can
complete projects.
o B. Licensing education ensures competency.
o C. Criminal record check protects buyers from fraud.
, o D. Correct – All are required for registration.
4. Which of the following is NOT covered under Tarion’s one-
year warranty?
A. Defects in work and materials
B. Water penetration through windows
C. Siding damage due to normal wear and tear
D. Improper electrical installation
• Rationale:
o A. Covered under the 1-year warranty.
o B. Covered if it affects habitability.
o C. Correct – Normal wear and tear is not covered.
o D. Covered under the 1-year warranty.
5. How soon must a builder provide the statutory warranties
after possession?
A. Immediately upon possession
B. Within 30 days of possession
C. Within 1 year of completion
D. Within 60 days of registration
• Rationale:
o A. Statutory warranties are effective at possession,
not delayed.
, o B. Some paperwork is required, but not specifically 30
days.
o C. Coverage begins at possession, not completion
date.
o D. Correct – Warranties are in effect from the day of
possession and registration.
6. What is the purpose of the Tarion deposit insurance?
A. Protects builders against non-payment from homeowners
B. Protects homeowners if a builder fails before occupancy
C. Provides insurance for builders’ equipment
D. Covers homeowner property damage after move-in
• Rationale:
o A. Tarion does not protect builders.
o B. Correct – It protects homeowners if the builder
cannot complete the home.
o C. Equipment insurance is separate.
o D. Homeowner damage after move-in is outside
deposit insurance.
7. When constructing a new home, which document must the
builder provide to the homeowner before any work begins?
A. Home inspection report
Exam Fundamentals Questions AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A
2026|INSTANT DOWNLOAD PDF
1. Which of the following best describes the primary role of
the Ontario Home Construction Regulatory Authority (HCRA)?
A. Inspecting homes after construction
B. Licensing and regulating builders and vendors
C. Setting mortgage rates for new homes
D. Providing insurance to homeowners
• Rationale:
o A. HCRA does not inspect homes; that is usually done
by municipal inspectors.
o B. Correct – HCRA licenses and regulates builders to
protect home buyers.
o C. Mortgage rates are set by banks, not HCRA.
o D. Insurance provision is through private insurers, not
HCRA.
2. What is the minimum warranty coverage a builder must
provide under Tarion for a newly constructed home?
A. 1 year for materials and labor
B. 2 years for major structural defects
,C. 7 years for major structural defects
D. 10 years for all defects
• Rationale:
o A. 1 year covers certain defects but not major
structural.
o B. 2 years is coverage for certain systems but not
structural.
o C. Correct – Tarion mandates 7 years for major
structural defects.
o D. 10 years is not a standard coverage period under
Tarion.
3. Under Ontario law, which of the following is required for a
builder to be registered with HCRA?
A. Proof of financial solvency
B. Proof of completion of a builder licensing course
C. Criminal record check
D. All of the above
• Rationale:
o A. Financial solvency ensures the builder can
complete projects.
o B. Licensing education ensures competency.
o C. Criminal record check protects buyers from fraud.
, o D. Correct – All are required for registration.
4. Which of the following is NOT covered under Tarion’s one-
year warranty?
A. Defects in work and materials
B. Water penetration through windows
C. Siding damage due to normal wear and tear
D. Improper electrical installation
• Rationale:
o A. Covered under the 1-year warranty.
o B. Covered if it affects habitability.
o C. Correct – Normal wear and tear is not covered.
o D. Covered under the 1-year warranty.
5. How soon must a builder provide the statutory warranties
after possession?
A. Immediately upon possession
B. Within 30 days of possession
C. Within 1 year of completion
D. Within 60 days of registration
• Rationale:
o A. Statutory warranties are effective at possession,
not delayed.
, o B. Some paperwork is required, but not specifically 30
days.
o C. Coverage begins at possession, not completion
date.
o D. Correct – Warranties are in effect from the day of
possession and registration.
6. What is the purpose of the Tarion deposit insurance?
A. Protects builders against non-payment from homeowners
B. Protects homeowners if a builder fails before occupancy
C. Provides insurance for builders’ equipment
D. Covers homeowner property damage after move-in
• Rationale:
o A. Tarion does not protect builders.
o B. Correct – It protects homeowners if the builder
cannot complete the home.
o C. Equipment insurance is separate.
o D. Homeowner damage after move-in is outside
deposit insurance.
7. When constructing a new home, which document must the
builder provide to the homeowner before any work begins?
A. Home inspection report
