Your Rights When Renovating

Most renovation horror stories start the same way: a handshake, a big deposit, and a contract nobody read. Ontario law gives you real protections before you sign — but only if you know them and use them. Here is what the Consumer Protection Act, 2002 actually gives you, in plain language.

Before you hire anyone

Get at least three written estimates from different contractors, and never accept one given over the phone or without the contractor inspecting the area. Good contractors ask a lot of questions — that is how they plan the job properly.

Check references properly: at least three, from people who had similar work done, and get some recent ones and some from further back. Problems in roofing or paving often do not show up for a year or more.

Before you sign, check the contractor and the person behind the business:

  • Ontario’s Consumer Beware List, for complaints or charges against them
  • Recent charges and convictions posted under the Consumer Protection Act
  • The Better Business Bureau, your local chamber of commerce, and your city
  • WSIB coverage — workers and independent operators in construction must have workplace safety and insurance coverage, with some exceptions
  • Skilled Trades Ontario certification for the tradespeople on your job
  • For electrical work, an ESA/ECRA licence number — no one may operate an electrical contracting business in Ontario without one, and the work vehicle should display it

A single operator may run several businesses or change a business name, so search both the business name and the operator’s name.

Your contract must be in writing

Under Ontario law, any home renovation contract worth more than $50 must be in writing. If something is not written in your contract, you may not get it.

Make sure your contract includes:

  • The contractor’s name, address, and contact information
  • A thorough description of the project, including the work to be done and the materials to be used
  • A clear description of any warranties
  • The total cost and the terms of payment
  • A work schedule, including start and completion dates
  • A payment schedule, including the deposit amount
  • Who is responsible for cleanup when the job is finished
  • All sub-trades that will be contracted out, and who pays for those sub-trades

For a major project, have a lawyer go over the contract and explain your rights before you sign. That one review is far cheaper than a dispute.

The 10% estimate rule

Insist that the written estimate is included as part of your contract. Once it is, the final price for all goods and services cannot be more than 10% over the original estimate — unless you have agreed to new work or a new price and signed a change to the contract.

That is why change orders matter: if new work comes up, your contractor should discuss it with you and ask you to approve and sign a change, including a new estimate, before proceeding. A contractor who bills 30% over with no signed change has broken this rule.

The 10-day cooling-off period

If you sign a home renovation or repair contract worth $50 or more in your home, you have a 10 calendar-day cooling-off period, starting the day you receive a written copy of the agreement. Within those 10 days you may cancel for any reason, without paying cancellation fees.

Two important qualifications:

  • If work started during the cooling-off period and you cancel, you are responsible for reasonable compensation for the work and materials the contractor has actually provided.
  • If you never received a proper written copy of the agreement, or the business made a false or misleading statement about the contract, you may be able to cancel up to one year after signing.

To cancel, notify the contractor — written notice is the wise move, and keep proof you sent it.

Deposits: keep them small

Ontario recommends keeping down payments to no more than 10% of the contract, and never paying the full amount before the work is done. A large upfront payment “to pay for materials” is the classic disappearing-contractor setup: the contractor cashes the deposit and never finishes — or never starts — the job. Legitimate renovation companies have enough credit to buy their own materials.

Avoid cash deals. Reputable companies charge and pay applicable taxes, and if you do pay cash, get a detailed, signed receipt — without proof of payment, you have little to stand on if anything goes wrong. If a contractor offers you financing, it is usually wiser to arrange your own.

Permits are your responsibility — unless the contract says otherwise

It is your responsibility to get building permits and meet the legal requirements for your renovation. If you want the contractor to get permits on your behalf, make sure it is spelled out in the contract — and do not allow construction to begin until you have seen the permits. Check with your city about zoning by-laws and rules, and make sure anyone preparing design plans for your permit application is registered on the Ministry of Municipal Affairs and Housing QuARTS registry.

Three scams Ontario warns about

The door-to-door game. A salesperson offers a “good deal” because they “just happen to be in the neighbourhood with all our material and equipment,” and the contract has to be signed right away to get the special price. Or they offer a “free inspection” of your furnace, chimney, or roof, then tell you immediate and expensive work is required — with a contract ready to sign.

The disappearing contractor. A large down payment is talked out of you “to pay for materials,” and the contractor vanishes with it.

The paper-free deal. No proper paperwork — no estimates, no contract, no licences, no permits. That is a warning sign, not a shortcut. A contract is your best protection as a consumer.

Ask these questions before you sign

  • Can I get references from people who had similar work done?
  • Will my estimate be included as part of my contract?
  • Will you get any building permits on my behalf? Can you say so in my contract?
  • How will we handle any disagreements or disputes? Can you include that in the contract?
  • If I cancel my contract after the work is started, will I have to pay for any work or materials?

If something goes wrong

First, put your complaint to the business in writing and keep proof of delivery. If that does not resolve it, you can file a complaint with Consumer Protection Ontario. And if the dispute is about payment, deficiencies, or a contractor who walked away, Ontario’s construction adjudication system can deliver a binding decision in weeks rather than years — Construction Dispute Adjudication in Ontario. If your contractor has already disappeared, Your Contractor Is Gone. Who Are You Going to Call?

Knowing your rights before you sign is what keeps a renovation from becoming a dispute. If you want a second set of eyes on a contract before you commit, The Reno Coach offers a free one-hour consultation for new clients — call 1-888-688-8864 or reach us through the contact page.

Sources: Ontario.ca, “Your rights when starting home renovations or repairs” (updated August 6, 2026); Ontario.ca, “Door-to-door sales and home service contracts”; Consumer Protection Act, 2002. This page is general information, not legal advice.