Tarion Warranty – Tips For The New Home Buyer

By law all new home builders and vendors in Ontario have to be registered. check your builders registration by calling their regional office in Ottawa at 613-724-4882.

Here are some quick figures for you to think about:

1. Deposit coverage is limited to $20,000.00 in event of non-completion; and

2. Maximum coverage on any housing unit is $300,000.00.

Home owner is responsible for notifying builder and TARION in writing of any complaints within 30 days of possession and within 30 days prior to the one year anniversary date.

Note: When submitting any form to TARION you should always add an update list of defects etc to your form. This keeps your file current and up to date. TARION might assume anything not on last submittal has been rectified and consider it completed.

There web site has both Customer Service Standards and Construction Performance Guidelines which are explained below.

Customer Service Standards which include mandatory requirements for builders in terms of after-sales service. These standards include the introduction of a standard Homeowner Information Package, a required Pre-Delivery Inspection, and specific timelines within which builders must provide necessary after-sales service.

Construction Performance Guidelines which provide factual information to assist with the resolution of warranty-related issues and help new homeowners understand what is and is not included in their statutory warranty coverage.

Some Coverage’s Include:

Water seepage, leakage through the building envelope, defective plumbing, heating or electrical systems, and the doors, windows and exterior cladding are all protected for TWO years.

Major structural defects are covered for seven years. Home built prior to 1990 are covered for five years.

Download complete book on TARION’s coverage from tarion.com, this will guide you through all the details and prepare you for completing the necessary forms. This is highly recommended, as a home inspector I have seen many contractors trying to rush their buyer through their inspection so that the initial report doesn’t contain many items. They then have been known to stall repairs until warranty runs out. Ensure your pre-delivery inspection is complete to the most minor defect. This is where a home inspector can really help you find every item that requires fixing.

I cannot stress the importance of insuring that TARION’s Certificate of Completion and Possession (CCP) contains anything and everything you are not satisfied with. This is a legally binding document you are signing and saying you didn’t know or didn’t notice will not help you getting the builder to fix anything that is not noted. I am not saying every builder will not fix things that are not written down, but the majority will not.

caveat emptor let the buyer beware