What is a Tarion New Home Warranty?
If you are in the market for a new build in Ontario you have likely heard of the Tarion New Home Warranty. Homeowners will be happy this private corporation protects you and your home now and into the future. They are the custodians of the Ontario New Home Warranties Plan Act and are a new homeowners safety net when they purchase a new build.
The Tarion Directory
Tarion licenses all new home and condominium builders in Ontario and publishes the Ontario Builder Directory. This directory is a who’s who in the new home building business. It lists whether the builder is licensed, how many homes they have built and whether there have been any issues with them in the past including warranty claims and refused or revoked licenses. If you are considering a purchase, checking out your builder is a must.
Tarion is pushing for legislation to make sure that all builders register with them, but there are still builders out there that are not registered with them. These builders often do not enroll their homes under the warranty program which can be a problem for new homeowners. If there is a problem with the home the buyer has no legal recourse to have it resolved. However, the Tarion warranty program has very specific guidelines and procedures in place that provide peace of mind and recourse if there are problems with a new build.
What the Tarion Warranty Covers
For instance, the Tarion New Home Warranty includes one year coverage against Ontario Building Code violations and defective materials and workmanship. The Tarion warranty also offers two year’s protection against water leaks, defective plumbing, heating or electrical and exterior materials such as your home’s doors and windows. You are also covered for two years for anything kind of health and safety such as unsafe building materials or flawed construction.
To top it all off, there is a seven-year warranty that covers any major structural defects. So you needn’t worry about the foundation crumbling or the roof falling in, even if you live in a condo.
Register Your Tarion Warranty Online
Tarion has an inline portal called MyHome where homeowners can track their warranties and submit paperwork when necessary. Tarion also encourages homeowners to take part in their annual Customer Satisfaction Survey. This survey is extremely important for builders and a chance for homeowners to have their say.
There is a huge push in the program to have builders resolve problems directly with the homeowner. Thus, if Tarion steps in, there are often repercussions.
Builders who get black marks for failing to meet the requirements of the program show up in their directory. Any potential buyer will be able to see this. This can make them lose business, plus they can be fined too. When an item is covered under the warranty and the builder does not resolve the issue within the applicable repair period Tarion follows up with them.
If you are considering buying a new home, be sure to do your research on the builder. The Ontario Builder Directory is available here. Having a reputable builder can save you money and years of frustration too. Don’t take chances with an unregistered builder. If a builder is good they stand behind their workmanship.
Have a question about purchasing and financing a new build in Ontario? Contact us today to speak to one of our mortgage professionals and learn all of your options.