New Home Purchases
An Introduction to New Home Warranties (Originally posted in New Dream Homes and Condos Magazine)
(Here's a valuable article on Tarion and what you're entitled to as a new home purchaser. RS)
One of the greatest benefits of buying a new home or condominium in
Tarion is a private corporation that protects new home and condominium buyers according to the terms of the Ontario New Home Warranties Plan Act. The Act requires that builders in
New Home Warranty Protection
A new home’s statutory (legal) warranty begins with Deposit Protection which is available if the builder does not complete the sale of the home through no fault of the buyer. Homebuyers who took possession of a new home before July 1, 2006 have warranty coverage up to $150,000. Homes with a possession date on or after July 1, 2006 have warranty coverage up to $300,000. Deposits are protected up to $40,000 for freehold homes, while deposits on condominiums are protected up to $20,000, with amounts over that covered separately under the Condominium Act. There is also Delayed Closing Protection up to $5,000 if the closing on a new home is delayed beyond five days and the builder does not provide proper written notice. Once new home buyers move in, their home is protected by specific one, two and seven-year warranties.
Buyer and Builder Education
One of Tarion’s responsibilities is to educate consumers and builders about new home warranty coverage. This is accomplished in several different ways. Advertising describes Tarion’s mandate and encourages consumers to visit the website or to call for more information about warranty protection. Tarion also publishes a variety of helpful brochures which can be downloaded from its website and holds monthly educational seminars for which consumers can register online.
Two types of seminars are offered: “Buying a New Home,” which focuses on the process of purchasing a new home and “Understanding Warranty Coverage,” which provides homeowners with an overview of the comprehensive warranty coverage that comes with every new home built in
Part of Tarion’s mandate as the regulator of