How to verify a property developer in Toronto

Corporate and licence registration

Before assessing marketing materials or submitting a deposit, verify that the legal entity selling the property is licensed to build and sell new homes in Ontario. Under the New Home Construction Licensing Act, 2017, all residential builders and vendors in Ontario must hold a valid licence issued by the Home Construction Regulatory Authority (HCRA).

Corporate existence and builder licensing are searched through two public databases:

• Ontario Builder Directory (OBD): Managed by the HCRA, this directory holds records on all licensed vendors and builders. A search by legal business name or umbrella corporation reveals licence status, conditions, refusal history, past project counts, and any convictions or administrative penalties.
• Ontario Business Registry (OBR) or Corporations Canada: To confirm the corporate structure of the entity, search the OBR (for provincially incorporated entities) or Corporations Canada (for federally incorporated companies). This confirms whether the company is active, its registered corporate address, and its legal directors.

Be aware that developers frequently establish a single-purpose entity (a Special Purpose Vehicle or SPV) for individual developments. In such cases, search both the specific SPV named on the Agreement of Purchase and Sale and the overarching parent company or corporate directors listed in the OBD.

Land ownership and title search

Marketing brochures and sales office displays do not guarantee that the developer legally owns the land. Land ownership in Toronto is verified through OnLand, the online portal for the Ontario Land Registration system managed by Teranet and the Ministry of Public and Business Service Delivery.

To verify property ownership:

1. Identify the site address or the specific Property Identification Number (PIN) assigned to the parcel. 2. Request a Parcel Register through the OnLand portal. The Parcel Register is the official title document showing the current registered estate owner, legal description, and all registered encumbrances. 3. Check the registered owner name against the vendor name on the Agreement of Purchase and Sale. If the vendor is not the registered owner, the developer must hold a registered agreement, option to purchase, or joint venture agreement granting legal control over the land. 4. Review registered mortgages, construction liens, or cautions. Multiple secondary mortgages or outstanding certificates of action for construction liens indicate financial encumbrances on the title.

Planning permissions and municipal approvals

Pre-construction units are frequently offered for sale before full municipal planning permissions are granted. In Toronto, planning status is verified directly through the City of Toronto Application Information Centre (AIC).

The AIC allows public searches by property address or file number to check active and historical planning applications. Verify the following specific approvals:

• Official Plan Amendment (OPA) and Zoning By-law Amendment (ZBA): Required if the proposed building height, density, or land use exceeds existing municipal zoning. Check whether the amendments have been passed by Toronto City Council or approved by the Ontario Land Tribunal (OLT).
• Site Plan Control Approval: Confirms that detailed architectural, engineering, and landscape plans have been approved by City Planning.
• Draft Plan of Condominium: Required for condominium developments to establish individual unit boundaries and common elements.

If the AIC indicates that planning applications are marked as 'Under Review' or 'Refused', the project cannot legally proceed to construction in its advertised form.

Track record and delivery history

Assess a developer's track record by checking past project completion history, delivery delays, and statutory warranty performance. In Ontario, mandatory coverage for new home warranties is administered by the Tarion Warranty Corporation.

Past delivery performance can be inspected through:

• HCRA Ontario Builder Directory: Shows the number of units built by the developer over the past ten years, statutory warranty claims paid out by Tarion, and any unresolved builder-paid claims.
• Tarion Directory: Details past warranty enforcement history, including paid claims for structural defects or delayed closing compensation.
• Land Registry condominium registrations: Confirm completed projects by searching past condominium corporation registrations (e.g., TSCC for Toronto Standard Condominium Corporation) on OnLand to verify historical timelines from sales launch to final registration.

Red flags requiring cancellation or refusal

Stop the transaction if any of the following facts are identified during independent diligence:

• Unlicensed vendor status: The vendor or builder is not listed or holds an 'Unlicensed' or 'Suspended' status on the HCRA Ontario Builder Directory. Selling new residential property without an HCRA licence is illegal in Ontario.
• No legal interest in land: The Parcel Register shows a third-party owner with no option, assignment, or title interest registered in favour of the developer.
• Refused planning applications: The City of Toronto AIC shows that OPA or ZBA applications were refused by City Council or dismissed by the OLT without subsequent resubmission.
• History of project cancellations: HCRA records show prior licence revocations or repeated project cancellations under the same corporate officers.
• Refusal to place deposits in trust: Demand from the seller to pay deposit funds directly to the corporate operating account rather than to a designated real estate broker's or law firm's trust account.