PURCHASING NEW CONSTRUCTION

 

The Tarion Home Warranty

 

Tarion serves new home buyers by ensuring that their investment is protected.  The deemed statutory warranties created by the Ontario New Home Warranties Plan Act apply, for the most part, to all purchases of new homes whether or not the vendor is registered or the home is enrolled. This warranty protection is provided by Ontario’s builders and lasts up to seven years.  It is backstopped by Tarion.  Tarion serves Ontario’s public interest by enhancing fairness and building confidence in the new home buying experience.

Tasked with administering the Ontario New Home Warranties Plan Act (ONHWP), Tarion has a mandate to:

  • Protect consumers when builders fail to fulfill their warranty obligations

  • Educate new home buyers and new home owners about their warranty rights and responsibilities

  • Fairly and impartially resolve disputes between homeowners and builders over warranty coverage

  • Be an effective steward of the Guarantee Fund and build confidence in the warranty program

  • Ensure new home builders and vendors abide by the ONHWP Act

  • License new home builders and vendors

  • Investigate and prosecute illegal building practices

  • Set standards and raise accountability in education, construction performance, and customer service

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Warranty coverage takes effect from the date of closing for a house or from the date of occupancy for a condominium.  In the case of condominiums, warranty coverage also includes the shared areas referred to as common elements.  Coverage for the common elements begins on the day the condominium corporation is registered.  Depending on the issue, coverage extends for one, two, or seven years.

 

Coverage extends (but is not limited) to:

  • Deposits

  • Protection against delayed closings

  • Protection against delayed occupancy for condominium units

  • Walls, Ceilings, Doors

  • Electrical

  • Plumbing

  • Ventilation

  • Defects in Materials and Work

  • Appliances

  • Violations of the Ontario Building Code’s Health and Safety 

  • Provisions

  • Water Seepage

  • Structural defects

NEW HOME PRE-DELIVERY INSPECTION (PDI)

If you have purchased a newly constructed home, you should visit the property prior to closing to inspect and prepare a list of items requiring the attention of the builder. You must arrange the inspection appointment time with the builder's representative.  At the time of inspection, you will complete the Certificate of Completion and Possession for delivery by the builder to the TARION New Home Warranty Program.  All items outstanding must be noted. The Warranty Certificate issued should be received by you and a copy should be provided to your lawyer prior to the closing of the real estate purchase.  Note: Should you omit to note a deficiency at the PDI, you may note it on your 30 day report form if submitted within 30 days.

Home buyers can manage their new home warranty by registering for MyHome, the online service for new home owners.  MyHome lets you submit warranty forms electronically, keep track of important warranty dates, and schedule Tarion inspections.  

For more information, visit: TARION