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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). 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.
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.
TWO-YEAR WARRANTY PROTECTION:
For homes enrolled on or after January 1, 1991, the program warrants for
two years against:
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Water
seepage through the basement or foundation walls
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Defects in materials and work including caulking, windows and doors so
that the building envelope prevents water penetration
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Defects in materials and work in the electrical, plumbing and heating
delivery and distribution systems
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Defects in materials and work which result in the detachment,
displacement or deterioration of exterior cladding
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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.
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.
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 coverage expires.
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. Written
notice of any complaint about a repair must be received by TARION within
the time period for the repair warranty to apply.
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. Future Homes provides this
service to all our Clients. 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. |
