Why Building Licenses Matter for Homeowners: Essential Insights
When choosing a construction company to build your home, licensing can become a key factor. However, it’s essential to understand that building licenses, such as CRMA and registration with Tarion, are necessary only in specific cases, and having them isn’t always required.
This article explains when licenses are genuinely needed and when construction can proceed without them, particularly if the house is being built for personal residence rather than sale.
1. CRMA and Tarion Licenses: When Are They Needed?
The CRMA building license and Tarion registration are required if the house is being built for eventual sale as a new home. These licenses are mandatory for developers planning to sell the house as new, offering guarantees and legal protection for future buyers.
If, however, the house is being built for personal use, these licenses aren’t necessary. In this case, the client doesn’t intend to sell the home as new and will reside in it personally.
2. When Are Licenses Not Required?
If you’re building a house for yourself and don’t plan to sell it as new on the market, you don’t need to demand CRMA licenses or Tarion registration from the construction company. This applies to personal-use projects, where the home is for your residence, not for sale.
For projects like Garden Suites, licenses aren’t required since they aren’t intended for sale as separate new homes. These projects are typically used to expand the living space on an existing property and don’t fall under new home sales regulations.
3. License Costs and Their Impact on Home Prices
It’s important to understand that homes built for sale as new cost more, as CRMA licenses and Tarion registration entail significant expenses for the developer. Licenses, warranties, and legal protections for buyers increase the project’s cost, which is reflected in the final price of the home. When building for personal use without sales plans, such expenses aren’t necessary, reducing overall construction costs.
Thus, homes intended for sale are a business for the customer and require additional licensing and certification expenses, making them costlier compared to homes built for personal residence.
4. Which Licenses Matter for Your Project?
Although licenses for new home sales may not be required, it’s still essential that the company holds licenses for specialized work, such as:
- Electrical work (ESA license).
- Gas systems (TSSA license).
- Plumbing and heating systems.
These licenses ensure that your home will be safe and comply with all standards.
Conclusion
CRMA and Tarion licenses matter only when a home is being built for subsequent sale as new. If you’re building a home for personal use or expanding your home with a Garden Suite, such licenses aren’t needed.
Homes built for sale as new are more expensive due to licensing and warranty costs required for their eventual sale. At VIGO House, we specialize in building homes for clients who plan to live in them, ensuring quality and safety without needing new home sale licenses.
