Homeowner Orientation: An Overview of Tarion’s New Home Warranty

Purchasing a new home is a big investment, and it’s natural to want to ensure that it’s protected from defects and issues that could arise. Tarion’s New Home Warranty program provides homeowners with the reassurance they need to protect their investments. The program covers defects in workmanship and materials, offering homeowners the security and confidence they need to fully enjoy their new homes.

Today, we’re breaking down the different warranty stages, including the pre-delivery inspection, 30-day warranty, 1-year warranty, 2-year warranty, and 7-year warranty that all serve to provide peace of mind to new homeowners. With Tarion’s New Home Warranty, you can feel secure in your purchase, knowing that your new home is protected.

What is Tarion?

Tarion is a non-profit organization established by the Ontario government to oversee the New Home Warranty program in the province. The Ontario New Home Warranties Plan Act mandates that all newly-built homes in Ontario come with a warranty provided by the builder. Tarion’s main objective is to ensure that new homebuyers receive the coverage they’re entitled to under their builder’s warranty.

How does the Tarion New Home Warranty work?

According to the Ontario New Homes Warranties Plan Act (ONHWP), a newly-constructed home that is built by a builder/vendor licensed by the Home Construction Regulatory Authority (HCRA) can qualify if it satisfies four specific requirements: there must be a “home,” “vendor,” “builder,” and “owner.” The coverage provided by the warranty begins when you sign the Agreement of Purchase and Sale and continues for a duration of up to 7 years, even if you choose to sell the home.

Who provides the warranty?

In order to receive an Enrolment Confirmation, the vendor or builder pays Tarion a warranty enrolment fee. If it’s a freehold home, the fee can be paid before construction begins. 

What are the different warranty stages?

Tarion’s New Home Warranty coverage encompasses two key aspects: protection before the home is transferred to the buyer and protection against construction defects that might emerge after the buyer has taken possession.

Before Possession

There are four main types of warranty coverage during this period. These include deposit protection, custom finishings, financial loss coverage for contract homes, and delayed closing/occupancy coverage and cancellations.

The Pre-Delivery Inspection

A pre-delivery inspection (PDI) is a thorough walk-through led by your builder before you take possession/occupancy of your new home. This is an important step in the process, where homeowners can document any deficiencies or concerns they notice before moving in. The PDI allows homeowners to ensure that the home meets the agreed-upon standards and allows for timely resolutions before occupancy. It’s also a chance to learn about how systems work and how to maintain parts of your home.

After Possession

Tarion’s New Home Warranty coverage is divided into the following time periods:

30-Day Warranty: This stage covers any unresolved warranty items identified during the PDI, as well as any new items that may have arisen since the buyer took possession of their home.

1-Year Warranty: This stage kicks in after the 30-day period and lasts for one year from the date of possession. The coverage addresses defects in workmanship, materials, and unauthorized substitutions outlined in the Purchase Agreement. It also protects the owner against Ontario Building Code violations and ensures the home is fit for habitation. 

2-Year Warranty: The 2-year warranty covers major systems. This includes defects in the home’s electrical, mechanical, and plumbing systems, as well as issues affecting functionality.

7-Year Warranty: The final stage of the Tarion New Home Warranty covers major structural defects after the second year of possession, but no later than seven years from the date of possession. This coverage ensures that any issues compromising the home’s structural integrity and making it unsafe or uninhabitable are addressed. 

What other coverage is available?

Incidental Costs: On occasion, homebuyers may encounter unexpected expenses due to authorized repairs on one or more warranted items in their new home. For instance, if a homeowner needs to hire a professional to relocate a major appliance in order for necessary floor repairs to be carried out, these expenses are known as incidental costs. In such situations, Tarion may offer further reimbursement to cover the costs associated with moving and/or replacing items during the duration of a warranted repair performed by, or on behalf of, Tarion.

Temporary Relocation Allowance: Sometimes, homeowners face unexpected costs because their home becomes uninhabitable during the repair or remediation of a warranted item. These costs may include accommodation, food, travel, and storage.

It’s important to note that to benefit from Tarion’s warranty protection, homebuyers should ensure that their builder is registered with Tarion. This can be confirmed by checking the Ontario Builder Directory, which lists all builders licensed to build new homes in Ontario.

Tarion’s website is an excellent resource for homeowners to learn more about their New Home Warranty, including the coverage types and limitations. The website also provides homeowners with access to resources, guides, and information that can be helpful when navigating the warranty process.

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