Tarion Makes Revision To Its “Ontario New Home Warranty Program”



Effective July 1st, 2012 new home enrolment fees have dropped by $150.   This is good news for you,  if you are about to purchase a new home from a builder in which the Tarion enrolment fees are extra.

Also, there has been a significant reconstruction of the Seven Year Warranty framework:

  • Builders/vendors accountability/liability for any Major Structural Defects (MSD)  have increased for the full seven years.  Previously, the builders/vendors were responsible for only the first two years and Tarion the remaining years.  Now claims not FULLY resolved by the builder/vendor will result in a claim showing up on the Tarion website.
  • The definition of MSD has been extended.  Tarion clarifies three tests to determine whether a claim represents a valid MSD claim.  It claims this will result in more consistent and transparent warranty decisions.
  • Tarion has set out a detailed MSD claims process including a claims schematic that helps understand the process.

Effective October 1st, 2012 other changes include:

  • Better disclosure of all fees.  All adjustments to the price must be located in a single location “Schedule B”.
  • New forms have been created to allow for more flexibility for changing critical dates by mutual agreement.

> Tarion Website:  New Policies in Effect July 1st, 2012


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