Tarion New Home Warranty
At HomeLife Emerald Realty Ltd. Brokerage we deal with two different New Home Builders and when you buy a home from them you get a Tarion New Home Warranty on the home. Many people are not sure what the Tarion New Home Warranty covers and how long it is in effect for. Here is some basic information about the Tarion New Home Warranty:
Warranty Coverage for New Homes in Ontario*
Every new home in Ontario comes with specific warranty coverage provided by your builder and backed by Tarion Warranty Corporation or provided by Tarion directly. This coverage, up to $300,000, begins on your date of possession and remains in effect even if you sell your home before the warranty expires. Tarion was created in 1976 to administer the provincial laws that protect new home buyers in Ontario. These laws require every home builder to be licensed and to provide specific warranty coverage with every new home. Tarion maintains a fund that is used to ensure your warranty is honoured even if the builder refuses to do so or goes bankrupt.
This coverage includes:
- Protection for deposits;
- Protection against Financial Loss for Contract Homes;
- Compensation for delays in closing or occupancy;
- Protection against unauthorized substitutions;
- One and two year warranties for certain defects in work and materials;
- A seven year warranty for major structural defects; and
- Coverage for condominium common elements (the common or shared area of condominium buildings.)
Warranty coverage remains in effect even if the home is sold.
Customer Service Requirements
Tarion also sets minimum customer service requirements that have important benefits for home buyers:
1) Your builder must provide you with a copy of Tarion’s Homeowner Information Package at or before the Pre-Delivery Inspection (PDI) of your new home.
2) Your builder is required to guide you through a PDI of your completed home to assess its condition before you take possession.
3) Tarion has established specific repair time periods when a Statutory Warranty Form is submitted by a homeowner. Submission of a 30-Day, Year-End and/or Second-Year form triggers an initial 120-day period during which builders should work to correct a warranty related item. If a builder does not complete repairs or otherwise resolve the warranted items to your satisfaction by the end of this time, then you have 30 days in which to contact Tarion to request a conciliation inspection.
Tarion ensures new home buyers receive the statutory warranty coverage they are entitled to under the Ontario New Home Warranties Plan Act. Most issues are resolved by the Builder without having to have involvement by Tarion, however they will intervene if a Builder fails to honour their warranty obligations. Statutory warranty coverage is different from the warranties for items provided by manufacturers, suppliers or subcontractors (such as appliances or flooring). Claims for these items should be made directly to the product provider.
If you have any questions or would like more information about the Tarion New Home Warranty you can call us at 705-424-0770 or visit www.tarion.com or call 1-877-9TARION.
Broker of Record/Owner
1 There is a maximum of $15,000 for warranted damage caused by environmentally harmful substances or hazards and a maximum of $25,000 for coverage of septic systems.