Consumer Protection : A New Home Is A Milestone Event

Purchasing a condominium or new home is one of the most significant investments you will make in your lifetime.Moving in to your new place is a milestone event — one you look forward to with excitement and anticipation.Occasionally, however, it is an event that requires some patience. Sometimes construction of a new condominium can be delayed for reasons beyond a builder’s control, and this can create uncertainty and stress for both the buyer and the builder.Some Ontario builders and purchasers are faced with this situation right now.Last May, a strike by five different unionized construction trades — frame, trim, drywall, tile and electrical — went on strike. The labour disruption created a dramatic slowdown in home building in various parts of the province. In some cases, construction ground to a complete halt.The strikes are now over, but their effects are not.Some builders are still having difficulty completing homes according to agreed-upon timelines because they have faced unexpected challenges in getting construction capacity back up to pre-strike levels — challenges that stem from ripple effects of the strike.Trades who were not on strike were also affected by the labour disruption because they were unable to work until construction sites returned to normal operation.In addition, the supply chain for materials for new construction in the province was seriously impacted. Some suppliers were forced to lay off staff during the strikes and then found it difficult to ramp up deliveries of materials because these laid-off staff found new employment elsewhere.In fact, the sheer scope of the strikes’ continuing impact on the delivery of finished new homes and condominiums is unparalleled in Ontario.As a result, occupancy dates set out on the Agreements of Purchase and Sale may no longer be realistic because homes are simply not ready for move-in. For a new condo owner, this means that their milestone plans to move in to their new home may have to be delayed for a while. For builders, the delay affects their core business of building and selling condominiums and homes.Faced with the unprecedented nature of this situation, new condo buyers should review their Agreements of Purchase and Sale and Tarion.com to understand both their contractual and their warranty rights.At the same time, we strongly encourage purchasers and builders to work together to find mutually agreeable solutions to these delays.No one likes to put plans on hold. Purchasers are eager to start this new chapter in their lives, and builders have financial and reputational reasons to ensure their customers move into their new homes as fast as circumstances allow.Keep in mind that Tarion backstops what is in fact the builder’s warranty. The great majority of purchasers in Ontario enjoy a positive and productive relationship with their builder. That’s why we feel it is important – for the mutual benefit of purchasers and builders – to communicate openly and find common ground on how to manage these delayed closings. This will help preserve the quality of this important relationship going forward.Consumers with questions relating to the new home warranty, including delayed occupancy, should visit Tarion.com or call 1-877-9-TARION (1-877-982-7466) HOWARD BOGACH is president and CEO of Tarion Warranty Corp., a private corporation established to protect the rights of new homebuyers and to regulate new home builders. Tarion.com