Ontario New Home Warranty Program Administrators
While it is true that Tarion (the Ontario New Home Warranty Program) is there to protect the Homeowners. Keep in mind that it is also there to protect the Builders. Tarion sets performance guidelines and time-lines that both the Builder and New Owner must follow. As a Builder, I can assure you that it is not difficult to meet those standards if you use decent trades and have proper site supervision. As a Realtor I can also assure you that if the owner does not follow the guidelines and time-lines given to them by Tarion, items that would normally be covered can then be disputed and potentially no-longer covered under the Tarion warranty.
The Tarion Performance Guidelines set the bar to which Builders must follow. The Builder must build to all applicable Code and By-Laws but must also meet certain new home performance guidelines. Both New Owners and Builders use these guidelines to protect themselves against the unrealistic expectations of the other. If you don’t know the system, you can be taken advantage of. Experienced Builders are also experienced with Tarion interactions. They have played the game before and know how to manipulate the situation in order try to get away with things they shouldn’t. Tarion alone is not enough. Ontario New Home Owners should get help when purchasing a new home. Purchasers should still have a Realtor, Mortgage Planer Home Inspector and a Lawyer each with specific knowledge in New Home Construction.
Example Performance Guideline Taken from the Tarion Web Site:
Article Number: 1.11
Condition: CAST-IN-PLACE CONCRETE FOUNDATION WALL IS CRACKED
Acceptable Performance/Condition: Cracks resulting from normal shrinkage are acceptable; cracks in excess of 6 mm in width are not acceptable.
Warranty: One-Year – Work and Materials • Cracks resulting from normal shrinkage of materials caused by drying after construction are excluded from the statutory warranty.
Action: Walls with cracks exceeding the acceptable condition shall be repaired.
Remarks: Concrete walls naturally crack during curing due to shrinkage. Where lateral or vertical movement is evident, further investigation may be required. The colour and texture of a repaired area may not match the surrounding concrete.
As you can see, cracks in your foundation are allowed! They must be smaller than the thickness of a dime and you must report it before your one year warranty is up.
Also, Tarion does not cover all new homes. I can build a house for myself, live in the house for six months, or rent it for one day, then sell it without Tarion. It is difficult to catch people that do this. Some go as far as placing furniture in the home, never live in it, and sell it just to avoid taxes and to be able to sell the home in an “as is” condition. There is no New Home Coverage for renovations. For example, if I completely gut a home or only keep part of a foundation but the rest is brand new. Tarion does not cover the home (yet).
When buying a New Home, regardless if it is under Tarion or not, purchasers should be consulting a Realtor with specific knowledge of new homes. Your Realtor can then put you in contact with Mortgage planners, Lawyers and Home Inspectors that are qualified to protect the purchasers interests and have specific knowledge of new homes. Just having the Ontario New Home Warranty is not enough. If you miss a deadline, or forget to point something out, an owner can be responsible for the repair which, depending on the problem, can get expensive very quickly far exceeding the costs of having a team looking out for your interests.
Did you know that many builders pay your Realtors fee? That means that the builder covers the cost of the purchaser having someone protect the purchasers interests. Not taking advantage of this usually means more profit for the builder as the price of the home will not likely change as buyers are not skilled in negotiating with new home builders. Contact the Steven Silva Team if you are thinking of buying or selling a new home. I also provide new home warranty inspections.
(Tarion Performance Guidelines Here)
(More on Construction Here)
Ontario Residential will start offering New Home Consultations for Newly Built homes. Ontario Residential will service the areas near Toronto (GTA) and north up along the 400 highway.
I find that most home inspectors provide a product not geared to new homes. I am no longer performing home inspections but will provide a home consultation and assist you in filling out your Tarion Deficiency List.
If you would like some more information, send me an email to stevensilva@ontarioresidential.ca
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Sorry, I don’t believe for a second that you need to know how to deal with Tarion. We have met every deadline with Tarion been in a court battle and they are so unprofessional it’s sickening. They have never met a deadline and always turn the story al around to make us the homeowner responsible. We bought a brand new house and got screwed, Tarion said we should have had a home inspection done before we purchased. We have had over ten floods in less than ten years, have three industrial sump pumps and there is nothing wrong with our house. Oh we need to get a battery back up in case the power goes out, that would last us 21 minutes, another joke. I could go on for hours.
Your frustration comes across very clearly. In my other blog, intro to Tarion, I start to discuss how the New Home Warranty is there to protect the builder by providing a standard that they can fall onto. Tarion is run mostly by builders.
It is also wonderful how people love to point out that One Should Have Had A Home Inspection as if that was the ultimate protection. Yes, I am a strong supporter of home inspections but (as a person who has done quite a few) I can tell you that there are many limitations. Many defects are hidden and appear after the fact.
Unfortunately, you are not alone in your frustration.
The Pre-Delivery Inspection, known as PDI, is the first and best opportunity that new home purchasers have to assert their home warranty claims. Items not discovered during the PDI may not be covered under the warranty and could cost the purchasers thousands of dollars. The builder may also dispute whether or not the items in question are covered.
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