Report : Tarion
By NextHome Staff
February 23, 2017
February 23, 2017
Almost Every New Home in Ontario is Protected. Is Yours?Did you know that almost every newly constructed home in Ontario is covered by the province’s new home warranty?And that every new home builder must be registered with Tarion? It’s one way you are protected from buying a home from a builder who cannot pass the technical or financial requirements needed to legally build homes in Ontario. Ensuring that your builder is registered with Tarion is key to making sure one of your biggest investments is protected.Your builder must be registered Almost all new homes in Ontario come with a new home warranty. The warranty is provided by registered builders. Tarion backstops the warranty in the event that the builder cannot or will not fulfill their obligations. Warranty protection begins as soon as you sign a purchase agreement, and includes protections for your deposit and delayed occupancy. Once you move in, the new home warranty can last up to seven years. If your builder is not registered, it means your home is built illegally. It also means you are likely not aware of the warranty protection to which you may be entitled.
Illegal building puts you at risk Illegal home building has led to the completion of substandard homes, puts home buyers at risk, and hurts the reputation of the building industry.When examining illegally-built houses, Tarion representatives often find that the homes haven’t been built to meet the requirements of the Ontario Building Code.Illegal builders may also be less likely to follow workplace and health and safety laws, which can leave home buyers open to potential liability.What’s more, when an illegal builder fails to inform the buyer about the mandatory warranty, home buyers may miss out on warranty coverage because claims are filed too late.In 2015 alone, Tarion paid over $2 million in claims on illegally built homes.
Research your home builder There are steps you can take to protect yourself from purchasing an illegally-built home. Before entering into any type of purchase agreement, research your builder on Tarion’s Ontario Builder Directory. This comprehensive directory provides a 10-year history for all registered builders, as well as for those who are no longer registered to build homes or have been refused registration.Don’t be swayed by builders who claim that they have a special exemption or that you don’t need the statutory warranty because they offer their own. Being licensed and providing a Tarion warranty isn’t optional — it’s the law.Get informed. Exercise your responsibilities and protect your warranty rights. For over 40 years, Tarion has administered the warranty program and regulated Ontario builders. Since 1976, the new home warranty program has enrolled more than two million Ontario homes, and provided consumer protection to millions of new home owners — delivering more than 40 years of building confidence.
Illegal building puts you at risk Illegal home building has led to the completion of substandard homes, puts home buyers at risk, and hurts the reputation of the building industry.When examining illegally-built houses, Tarion representatives often find that the homes haven’t been built to meet the requirements of the Ontario Building Code.Illegal builders may also be less likely to follow workplace and health and safety laws, which can leave home buyers open to potential liability.What’s more, when an illegal builder fails to inform the buyer about the mandatory warranty, home buyers may miss out on warranty coverage because claims are filed too late.In 2015 alone, Tarion paid over $2 million in claims on illegally built homes.Research your home builder There are steps you can take to protect yourself from purchasing an illegally-built home. Before entering into any type of purchase agreement, research your builder on Tarion’s Ontario Builder Directory. This comprehensive directory provides a 10-year history for all registered builders, as well as for those who are no longer registered to build homes or have been refused registration.Don’t be swayed by builders who claim that they have a special exemption or that you don’t need the statutory warranty because they offer their own. Being licensed and providing a Tarion warranty isn’t optional — it’s the law.Get informed. Exercise your responsibilities and protect your warranty rights. For over 40 years, Tarion has administered the warranty program and regulated Ontario builders. Since 1976, the new home warranty program has enrolled more than two million Ontario homes, and provided consumer protection to millions of new home owners — delivering more than 40 years of building confidence.