Tarion is a private, not-for-profit consumer protection organization established by the Ontario government in 1976 to administer the province’s new home warranty program.
By law, all new homes built in Ontario are provided with a warranty by the builder. Tarion’s role is to ensure that buyers of newly-built homes in Ontario receive the coverage they are entitled to under their builder’s warranty.
Before buying a new pre-construction condo or home, understand the warranty coverage. Working with Tarion Warranty Program is an opportunity to enjoy the vital coverage.
Your builder provides the warranty coverage, which Tarion then supports.
There are several advantages of choosing a new pre-construction home or condo:
For every home built in Ontario, the builder must provide statutory warranty coverage.
The contents of the cover are:
When buying a home, the buyer needs to have a deposit. The builder puts the deposit in a trust. Alternatively, the builder can use other security means as in the Condominium Act.
The deposit you provide to your builder is protected up to certain limits if:
• Your builder goes bankrupt
• Your builder fundamentally breaches your agreement
• You exercise your right to terminate the agreement
Deposit coverage limits are as follows:
• Purchase price $600,000 or less: $60,000
• Purchase price over $600,000: 10% of purchase price to a maximum of $100,000
This protection includes the money you put down towards upgrades and other extras.
There are cases when your builder decides to terminate your purchase agreement. If this happens, you receive a deposit refund in about ten days.
The warranty safeguards your deposit for an extra $20,000.
The builder assures the home buyer that the home will be ready by a specific date in the purchase agreement or by a date that has been properly extended if circumstances occur that delay the home’s completion. However, the builder may fail to deliver as agreed. In such scenarios, you can claim up to $7,500 from your builder for unacceptable delays.
When you become a homeowner, the home warranty cover takes effect. Subsequently, the warranty is valid for seven years with a cover of up to $300,000. But there are other alternatives.
A homeowner under a two-year warranty is entitled to;
The seven-year warranty covers a homeowner from primary structural defects. Some of these defects include:
The Tarion home warranty program protects the homeowner from many risks. The program ensures that there is no infringement of the rights of the homeowner. However, the owners also have a part to play under the program. The roles of the homeowner are;
A homeowner may at one time have some problems. If a problem arises, notify the builder in advance and review and address the matter. Where necessary, like in making repairs, the owner will have to give the builder access to their home.
Tarion comes in when the builder fails to settle the matter. We assess the case and, if justifiable, resolve it. However, the owner must report the warranty claim in the given relevant timeframe to get our help.
Before taking full possession of your home, it is advisable to inspect the house. When checking, note down missing or damaged components. Your builder writes down the items in a PDI Form and hands you a copy. The PDI also grants you a chance to learn how to operate systems.
Your builder must address the issues noted on the PDI Form as long as they are under warranty.
On the inspection date, the buyer completes the Certificate of Completion and Possession. This document signifies the delivery of the unit from the builder to the program.
For more information about your home coverage, please visit Tarion.com.
