Free Resources - Tarion Warranty
TARION NEW HOME WARRANTY PROGRAM
WHEN DOES THE TARION NEW HOME WARRANTY COVERAGE BEGIN?
Warranty coverage takes effect from the date of closing (or, in a condominium, from the date of available occupancy). In the case of condominiums, warranty coverage also includes the shared areas referred to as common elements. The coverage for the common elements begins on the day the condominium corporation is registered. (Registration of a condominium usually takes place within a few months after
available occupancy). Maximum coverage for a new residence is $150,000.00 (see details in www.Tarion.com).
DEPOSIT PROTECTION:
Deposit coverage begins the moment a deposit is paid. When you buy a new freehold home, you are protected against financial loss, including your deposit, to a maximum of $40,000.00, if the builder does not complete the sale through no fault of the purchaser (up to $20,000.00 if purchase agreement signed before February 1, 2003). When you buy a new condominium, deposits are protected up to $20,000.00 since new condominium purchasers are protected for deposits over $20,000.00 by the trust and excess deposit provisions in the Condominium Act, 1998.
ONE-YEAR WARRANTY PROTECTION:
The program warrants that the home is free from defects in materials and workmanship, is fit to live in, and meets the Ontario Building Code requirements for one year from the date that purchaser was entitled to occupy. Homeowners are responsible for notifying both the builder and the Tarion New Home Warranty Program in writing of any defects before the end of the first year. If Tarion does not receive notice in writing within the warranty period, the claim might not be allowed.
Builders will pass on to you any warranties given by manufacturers, suppliers and subcontractors that extend beyond the first year. In these cases, a purchaser should make any claims directly to the manufacturer or distributor.
Common Elements and Exclusive Use Common
Elements
Common Elements (as defined
by the Declaration and Description) are not covered under individual suite
warranty. Where applicable, the Common Elements are covered under the Ontario
New Home Warranty Program, separately. These issues should be addressed to the
Board of Directors, via Property Management and copied to your Customer Service
Representative.
TWO-YEAR WARRANTY
PROTECTION:: For homes enrolled on or after January 1, 1991, the
program warrants for two years against:
SEVEN-YEAR WARRANTY
PROTECTION:
Homes enrolled on or after January 1, 1991 are
protected for seven years against major structural defects; a major structural
defect is defined in the Ontario New Home Warranties Plan Act
as any defect in materials or work that results in the failure of a
load-bearing part of the home's structure, or any defect in materials or work
that significantly and adversely affects the use of the building as a home.
Limitations
The
obligations under TARION warranty, are strictly limited to those repairs and
time periods expressly set forth, and no other responsibility or obligation is
to be implied. In any event, TARION will not be responsible for any indirect,
secondary or consequential damage which may be attributable to defects to which
repair obligations apply, including and, without limitation to, damage to the
property of the owner or other chattels or other improvements made by anyone
other than an authorized representative of the developer.
What’s Not Covered
Knowing what’s not
covered by TARION warranty is just as important as knowing what is. New
Homebuyers should become familiar with what is not covered under warranty
protection:
PROTECTION AGAINST DELAYED CLOSING
FOR FREEHOLD BUYERS:
A builder can extend the closing date up
to a total of 120 days at any time prior to closing by giving written notice of
the extension. However, if the builder does not give the following written
notice of delays, you may be able to claim compensation for out-of-pocket
expenses. A claim can only be made when you become the owner.
A builder anticipating a delay in closing of
more than 15 days must notify you at least 65 days before the original closing
date and set a new closing date. The builder may extend the closing date once
by up to 120 days, if you are given written notice at least 65 days before the
closing date.
A builder anticipating a delay in closing of no
more than 15 days beyond the original or extended date as outlined above must
notify you at least 35 days before the original or extended closing date and
set a new closing date.
The builder is allowed up to five days grace
regarding last-minute closing delays without penalty. Beyond that, any builder
who fails to give proper notice will be required to compensate you up to $100 a
day for living expenses plus all direct costs caused by the delay, to a maximum
of $5,000.
To be compensated, you must complete the
purchase. If the builder refuses to close, call your TARION Office for
information on how this will affect coverage. Keep your receipts for expenses.
Claim forms are available from TARION. You must submit your claim in writing to
TARION before the end of the first year warranty period.
There is no compensation for delays caused by
events beyond the builder's control, e.g., strikes, fires, civil insurrection,
floods or acts of God, or for delays which are caused by the purchaser.
PROTECTION AGAINST DELAYED OCCUPANCY
FOR CONDOMINIUM BUYERS :
(For Agreements of Purchase and Sale
signed on or after April 1, 1991)
As in the case for delayed closings for freehold
homes, the builder may extend the confirmed occupancy date once by up to 120
days, if you are given written notice at least 65 days before the confirmed
date. The builder can also have a 15-day extension if you are given 35 days
notice. In all cases, builders are allowed a five-day grace period.
Any builder who fails to give proper notice will
be required to compensate you up to $100 a day for living expenses plus all
direct costs caused by the delay, to a maximum of $5,000.
HOW TO RESOLVE YOUR
COMPLAINT:
Be sure you bring any problems to the attention of
your builder and TARION in writing before the end of the warranty period. For
example, if you took possession of your new home on June 15, 1998, the first,
second and seven year warranties expire at midnight on June 14 of the
appropriate year. Make a note of when your warranty coverages expire.
At any time during the first 30 days after the
closing date with the builder (or after the interim occupancy closing date for
a newly constructed condominium), the Homeowner must use Tarion’s 30-day Form
in which one can request the repair of any item, which appeared on the PDI
Form, as well as any new items. Any time during the last 30 days of the first
year the Homeowner is entitled to submit a single Year-End Form outlining any
additional defects. When you follow up, and as you contact the builder’s
representative for after closing service on outstanding matters, it is wise for
you to send confirming letters or faxes each time you call the builder’s
representative (and keep copies of such communications) so that you can provide
copies of all correspondence to TARION if a complaint will ultimately be filed
by you for lack of response by the builder in satisfying any outstanding
deficiencies. Builders are rated by TARION with respect to their follow up on
after closing service.
If TARION does not receive your notice in
writing within the warranty period, your claim cannot be allowed. In your
letter, describe the problem and ask the builder to correct it. Remember to
include the enrolment number, your complete address, lot and plan numbers, or
the condominium address and unit number. Condominium unit owners who experience
common element problems should write to their Board of Directors once the
condominium is registered. The board is responsible for bringing common element
problems to the attention of the builder and TARION, if necessary.
Written notice of any complaint about a repair
must be received by TARION within the time period for the repair warranty to
apply.
TARION FEES:
Effective February 15, 2000, the deficit
recovery fee of $100 (+GST +PST) is being removed. However, if the builder
filed their enrolment form before February 15, 2000, the deficit recovery fee
still applies.
NEW HOME PRE-DELIVERY INSPECTION
(PDI):
If you have bought a newly constructed unit, you should
attend at the property prior to closing to inspect and prepare a list of
matters requiring the attention of the builder. The inspection appointment time
must be arranged by you 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 the lawyer prior to the closing of the
real estate purchase. Note: Should you omit to note a deficiency at the P.D.I.,
you may note it on your 30 day report form if submitted within 30 days.
NEED MORE
INFORMATION?
As a purchaser of a new home, you have various
rights pursuant to the Program and, in particular, there are provisions by
which you may compel the completion or rectification of prescribed items of
construction. To familiarize yourself with your rights as well as the
procedures and times within which they must be enforced, refer to the brochure
entitled "What Every New Home Buyer Should Know". If you do not already have a
copy of this pamphlet in your possession, please contact TARION at 5150 Yonge
Street, Concourse Level, Toronto, Ontario M2N 6L8 Tel. 1-800-668-0124.
WHEN DOES THE TARION NEW HOME WARRANTY COVERAGE BEGIN?
Warranty coverage takes effect from the date of closing (or, in a condominium, from the date of available occupancy). In the case of condominiums, warranty coverage also includes the shared areas referred to as common elements. The coverage for the common elements begins on the day the condominium corporation is registered. (Registration of a condominium usually takes place within a few months after
available occupancy). Maximum coverage for a new residence is $150,000.00 (see details in www.Tarion.com).
DEPOSIT PROTECTION:
Deposit coverage begins the moment a deposit is paid. When you buy a new freehold home, you are protected against financial loss, including your deposit, to a maximum of $40,000.00, if the builder does not complete the sale through no fault of the purchaser (up to $20,000.00 if purchase agreement signed before February 1, 2003). When you buy a new condominium, deposits are protected up to $20,000.00 since new condominium purchasers are protected for deposits over $20,000.00 by the trust and excess deposit provisions in the Condominium Act, 1998.
ONE-YEAR WARRANTY PROTECTION:
The program warrants that the home is free from defects in materials and workmanship, is fit to live in, and meets the Ontario Building Code requirements for one year from the date that purchaser was entitled to occupy. Homeowners are responsible for notifying both the builder and the Tarion New Home Warranty Program in writing of any defects before the end of the first year. If Tarion does not receive notice in writing within the warranty period, the claim might not be allowed.
Builders will pass on to you any warranties given by manufacturers, suppliers and subcontractors that extend beyond the first year. In these cases, a purchaser should make any claims directly to the manufacturer or distributor.
- Walls/Ceilings Repairs to shrinkage cracks due to settling and corner bead splits will be done as a courtesy
only once within the one-year period. Repair will not include repainting or
replacing upgrades.
- Electrical Defects in materials or
installation to wiring, light switches, duplex outlets, electrical panel and
breakers are covered by this warranty. The addition of breakers or circuits or
any alterations to the electrical system by the Homeowner voids this warranty
item.
- Plumbing Defects due to materials or
improper installation for all copper piping, drains, soldered joints and
shut-off valves. Finishes on plumbing fixtures or faucets are covered by the
manufacturer’s warranty where applicable. Plumbing blockages caused by
Homeowners are not applicable under this warranty. The satisfactory
operation of the faucets is covered under the manufacturer’s warranty where an
extended warranty applies.
- Doors Warped or ill-fitting interior
doors (except closet sliders and cabinet doors). Normal shrinkage and
expansion due to humidity levels will occur and will usually correct itself in
the first year.
- Ventilation Fans Performance of
kitchen/stove hood fan and bathroom fan(s), provided the fans/filters have been
kept free of grease and dirt build-up.
- Appliances Manufacturer’s
warranty-deal with the manufacturer directly.
Common Elements and Exclusive Use Common
Elements
Common Elements (as defined
by the Declaration and Description) are not covered under individual suite
warranty. Where applicable, the Common Elements are covered under the Ontario
New Home Warranty Program, separately. These issues should be addressed to the
Board of Directors, via Property Management and copied to your Customer Service
Representative.
TWO-YEAR WARRANTY
PROTECTION:: For homes enrolled on or after January 1, 1991, the
program warrants for two years against:
- Water seepage through the basement or
foundation walls (in condominiums, this protection includes all below-ground
areas such as parking garages)
- Defects in materials and work including
caulking, windows and doors so that the building envelope prevents water
penetration
- Defects in materials and work in the
electrical, plumbing and heating delivery and distribution systems
- Defects in materials and work which result in
the detachment, displacement or deterioration of exterior cladding
- Violations of the Ontario Building Code's
health and safety provisions
SEVEN-YEAR WARRANTY
PROTECTION:
Homes enrolled on or after January 1, 1991 are
protected for seven years against major structural defects; a major structural
defect is defined in the Ontario New Home Warranties Plan Act
as any defect in materials or work that results in the failure of a
load-bearing part of the home's structure, or any defect in materials or work
that significantly and adversely affects the use of the building as a home.
Limitations
The
obligations under TARION warranty, are strictly limited to those repairs and
time periods expressly set forth, and no other responsibility or obligation is
to be implied. In any event, TARION will not be responsible for any indirect,
secondary or consequential damage which may be attributable to defects to which
repair obligations apply, including and, without limitation to, damage to the
property of the owner or other chattels or other improvements made by anyone
other than an authorized representative of the developer.
What’s Not Covered
Knowing what’s not
covered by TARION warranty is just as important as knowing what is. New
Homebuyers should become familiar with what is not covered under warranty
protection:
- Defects in materials, design and work supplied
or installed by the Homeowner/Purchaser, e.g., cabinets, flooring, and
painting
- Secondary damage caused by defects under
warranty. While the defects themselves are covered, the personal or property
damage they cause is not. Often, Homeowner’s insurance covers secondary
damage.
- Normal wear and tear
- Normal shrinkage of materials that dry out
after construction
- Damage resulting from improper maintenance or
Homeowner negligence. For example, dampness or condensation caused by
Homeowner failing to maintain proper ventilation levels.
- Alterations or additions made by the
Homeowner.
- Settling soil around the building or along
utility lines.
- Damage caused by Homeowner, tenants and
guests.
- Damage from insects or rodents, unless
construction does not meet the Ontario Building Code.
- Damage beyond the Homeowner’s control, e.g.,
floods, acts of God, wars, riots and vandalism.
- Damage caused by municipal services and other
utilities.
- Surface defects in work and materials noted in
writing and accepted by the Homeowner at the time of possession.
- Homes that have been lived in or rented prior
to sale.
- Home purchased from a receiver or trustee may
not have warranty coverage.
PROTECTION AGAINST DELAYED CLOSING
FOR FREEHOLD BUYERS:
A builder can extend the closing date up
to a total of 120 days at any time prior to closing by giving written notice of
the extension. However, if the builder does not give the following written
notice of delays, you may be able to claim compensation for out-of-pocket
expenses. A claim can only be made when you become the owner.
A builder anticipating a delay in closing of
more than 15 days must notify you at least 65 days before the original closing
date and set a new closing date. The builder may extend the closing date once
by up to 120 days, if you are given written notice at least 65 days before the
closing date.
A builder anticipating a delay in closing of no
more than 15 days beyond the original or extended date as outlined above must
notify you at least 35 days before the original or extended closing date and
set a new closing date.
The builder is allowed up to five days grace
regarding last-minute closing delays without penalty. Beyond that, any builder
who fails to give proper notice will be required to compensate you up to $100 a
day for living expenses plus all direct costs caused by the delay, to a maximum
of $5,000.
To be compensated, you must complete the
purchase. If the builder refuses to close, call your TARION Office for
information on how this will affect coverage. Keep your receipts for expenses.
Claim forms are available from TARION. You must submit your claim in writing to
TARION before the end of the first year warranty period.
There is no compensation for delays caused by
events beyond the builder's control, e.g., strikes, fires, civil insurrection,
floods or acts of God, or for delays which are caused by the purchaser.
PROTECTION AGAINST DELAYED OCCUPANCY
FOR CONDOMINIUM BUYERS :
(For Agreements of Purchase and Sale
signed on or after April 1, 1991)
As in the case for delayed closings for freehold
homes, the builder may extend the confirmed occupancy date once by up to 120
days, if you are given written notice at least 65 days before the confirmed
date. The builder can also have a 15-day extension if you are given 35 days
notice. In all cases, builders are allowed a five-day grace period.
Any builder who fails to give proper notice will
be required to compensate you up to $100 a day for living expenses plus all
direct costs caused by the delay, to a maximum of $5,000.
HOW TO RESOLVE YOUR
COMPLAINT:
Be sure you bring any problems to the attention of
your builder and TARION in writing before the end of the warranty period. For
example, if you took possession of your new home on June 15, 1998, the first,
second and seven year warranties expire at midnight on June 14 of the
appropriate year. Make a note of when your warranty coverages expire.
At any time during the first 30 days after the
closing date with the builder (or after the interim occupancy closing date for
a newly constructed condominium), the Homeowner must use Tarion’s 30-day Form
in which one can request the repair of any item, which appeared on the PDI
Form, as well as any new items. Any time during the last 30 days of the first
year the Homeowner is entitled to submit a single Year-End Form outlining any
additional defects. When you follow up, and as you contact the builder’s
representative for after closing service on outstanding matters, it is wise for
you to send confirming letters or faxes each time you call the builder’s
representative (and keep copies of such communications) so that you can provide
copies of all correspondence to TARION if a complaint will ultimately be filed
by you for lack of response by the builder in satisfying any outstanding
deficiencies. Builders are rated by TARION with respect to their follow up on
after closing service.
If TARION does not receive your notice in
writing within the warranty period, your claim cannot be allowed. In your
letter, describe the problem and ask the builder to correct it. Remember to
include the enrolment number, your complete address, lot and plan numbers, or
the condominium address and unit number. Condominium unit owners who experience
common element problems should write to their Board of Directors once the
condominium is registered. The board is responsible for bringing common element
problems to the attention of the builder and TARION, if necessary.
Written notice of any complaint about a repair
must be received by TARION within the time period for the repair warranty to
apply.
TARION FEES:
Effective February 15, 2000, the deficit
recovery fee of $100 (+GST +PST) is being removed. However, if the builder
filed their enrolment form before February 15, 2000, the deficit recovery fee
still applies.
NEW HOME PRE-DELIVERY INSPECTION
(PDI):
If you have bought a newly constructed unit, you should
attend at the property prior to closing to inspect and prepare a list of
matters requiring the attention of the builder. The inspection appointment time
must be arranged by you 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 the lawyer prior to the closing of the
real estate purchase. Note: Should you omit to note a deficiency at the P.D.I.,
you may note it on your 30 day report form if submitted within 30 days.
NEED MORE
INFORMATION?
As a purchaser of a new home, you have various
rights pursuant to the Program and, in particular, there are provisions by
which you may compel the completion or rectification of prescribed items of
construction. To familiarize yourself with your rights as well as the
procedures and times within which they must be enforced, refer to the brochure
entitled "What Every New Home Buyer Should Know". If you do not already have a
copy of this pamphlet in your possession, please contact TARION at 5150 Yonge
Street, Concourse Level, Toronto, Ontario M2N 6L8 Tel. 1-800-668-0124.
