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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.

  • 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. 


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