Introduction to the Tarion Warranty Program: Tarion Warranty Corporation is a non-profit organization that administers the Ontario New Home Warranties Plan Act, protecting homebuyers of new construction homes. The warranty serves to ensure that builders adhere to provincial construction standards and that homeowners are protected against significant construction defects.
Comprehensive Coverage Details
1. First Year Warranty:
- Work and Materials: This covers defects in workmanship and materials used in the home, including issues with flooring, paint, trim, and the installation of fixtures.
- Unauthorized Substitutions: If the builder uses materials or products different from those specified in the purchase agreement without the homeowner’s consent, these are covered.
- Ontario Building Code Violations: Any health and safety-related violations of the Ontario Building Code identified within the first year are covered.
2. Second Year Warranty:
- Water Penetration: This includes protection against water seepage through the basement or foundation walls and issues with the windows or doors that could lead to water penetration.
- Heating, Plumbing, and Electrical Systems: The warranty covers defects in the supply and distribution of electricity and heat, as well as any plumbing system issues within the home.
- Ontario Building Code Violations: Covers any building code violations that affect the building envelope or the health and safety of the occupants.
3. Seven-Year Major Structural Defects Warranty:
- Major Structural Defects (MSD): This warranty covers significant structural defects that affect the building’s load-bearing components, compromising the structural integrity of the home. Examples include a collapse of the roof or foundation issues that threaten the home’s stability.
Additional Provisions and Conditions
Interim Occupancy for Condominiums:
- During the interim occupancy phase in condominiums, buyers might not yet have title to their units but can occupy the property. They pay interim occupancy fees covering the builder’s estimated costs until the condominium registration is complete.
Exemptions and Limitations:
- The warranty does not cover normal wear and tear, damage caused by the homeowner, secondary damage from defects (like personal property damage), or issues due to poor maintenance.
Other Exceptions
When homeowners opt to purchase only the shell of a house and undertake the completion of the interior or other improvements themselves, understanding the implications for their Tarion warranty coverage becomes crucial. Here’s how such choices can impact the warranty:
- Homeowner-Initiated Work: Any interior work completed by the homeowner or through subcontractors hired directly by the homeowner is not covered under the Tarion warranty. This includes defects, damages, or issues arising from these enhancements or modifications. Homeowners take full responsibility for the quality and completion of this work and must manage any issues that arise independently.
- Exceptions for Existing Foundations: Building on an existing foundation brings additional specific considerations:
- Structural Warranty Limitations: The Tarion warranty generally does not cover the existing foundation itself. Issues directly related to the original foundation are exempt from coverage.
- Builder’s Responsibilities: If the builder carries out modifications to or interacts with the existing foundation, that work might be covered under the warranty, provided the builder has agreed to be responsible for the entire structure’s integrity, including the pre-existing elements, in the building contract.
- Purchasing Only the House Shell:
- Coverage for the Shell: When a homeowner purchases just the shell of the house, Tarion’s coverage is limited to the construction quality of the shell itself and any other work completed by the builder.
- Homeowner’s Completion: Any further development or finishing done by the homeowner after purchasing the shell, such as installing interiors, plumbing, or electrical systems, will not be covered by the Tarion warranty. The homeowner is responsible for ensuring the work complies with building standards and for rectifying any issues that may arise from these efforts.
Claims Process and Dispute Resolution
Filing a Claim:
- Homeowners are required to submit warranty claims within specific timelines outlined by Tarion, using prescribed forms to describe the issues clearly and accurately.
Dispute Resolution:
- If there is a disagreement between the homeowner and builder over warranty coverage or claim handling, Tarion offers a conciliation process where they inspect the home and make a ruling. If the homeowner or builder disagrees with Tarion’s decision, they can appeal to the License Appeal Tribunal for a final resolution.
Conclusion
The Tarion Warranty Program offers critical protections for homeowners, ensuring that new homes meet specific standards and that builders rectify significant construction defects. Understanding the scope of this coverage helps homeowners manage their new home purchase confidently, ensuring they can address any issues under the warranty provisions effectively.
For the latest information, visit Tarion.com
