What is covered?
Below are some highlights of your warranty coverage. You should fully review your coverage by visiting Tarion's Web site at www.tarion.com. It contains useful information about the warranty, as well as other helpful publications that you can download. You can also request publications free of charge by calling Tarion toll-free at 1-877-9-TARION (1-877-982-7466).
1. Deposit Protection
If you are a freehold home buyer and your builder cannot complete the sale through no fault of yours, your deposit is protected up to a maximum of $40,000. Condominium deposits are protected up to $20,000 (plus interest, required by the Condominium Act). Condominium purchasers are protected for deposits over $20,000 by the trust and excess deposit provisions of the Condominium Act, 1998.
2. One-Year Warranty Protection
The builder warrants that your new 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 of possession. For condominiums, warranty coverage begins on the date of occupancy.
3. Two-Year Warranty Protection
The builder warrants against certain conditions for two years, such as water seepage through the basement or foundation walls or other defects that allow water penetration; defects in the electrical, plumbing and heating systems; and violations of the Ontario Building Code’s health and safety provisions.
4. Seven-Year Warranty Protection
Homes are protected against major structural defects for seven years. This includes defects in materials or workmanship resulting in failure of a load-bearing part of the home’s structure or adversely affecting your use of the building as a home, or the common areas of a condo.
5. Protection Against Delayed Closing Without Advance Notice
There are a number of complex regulations addressing the issue of delayed closings for freehold and condominium units. The goal is to ensure that you receive sufficient advance notice or that compensation is available to you.
6. Protection Against Substitutions Made Without Your Agreement
Any items not specifically selected but included in your purchase agreement can only be substituted by the builder with items of equal or better quality. If your purchase agreement allows you to select items of specific colour and styles, the builder cannot substitute these without seeking your consent.
Under the warranty program, the total maximum coverage of each home is $100,000. In condominiums, common elements are also covered for a total of $50,000 times the number of units, to a maximum of $2.5 million.
You should also review your documents to ensure that you understand what is not covered, such as personal or property damage caused by defects or damage resulting from improper maintenance or negligence on your part.
Bear in mind that your home is built with new materials, and it may need time to settle. This is why you should wait at least a year before making major decorating changes such as building a deck, finishing the basement or even applying wallpaper.
