Understanding Tarion: Safeguarding New Home Buyers Ontario
The recent surge in new construction projects across Ontario has led to a significant increase in the number of claims filed with Tarion, the organization responsible for new home warranties with a primary focus on safeguarding the rights of new home purchasers. This trend highlights the critical importance of understanding what Tarion covers and the specific timeframes within which claims can be made.
What Does Tarion Cover?
Tarion offers multiple layers of protection for the first time home buyer Ontario, ensuring that builders fulfill their obligations and providing homeowners with recourse if they do not. Tarion coverage begins on the date of possession and continues to be valid even if the home is sold before the warranty expires. Here’s a breakdown of what is covered and the relevant timelines for filing claims:
1. One-Year Warranty
Within one year of the date specified in the Certificate of Completion and Possession (CCP), Tarion covers all claims or deficiencies related to the construction of the home. This includes any issues affecting the home’s overall condition and its compliance with the Ontario Building Code. The term “fitness for habitation” is interpreted broadly, covering any elements of the home that are broken or not in the expected good condition, such as a broken window.
2. Two-Year Warranty
For up to two years after the date specified in the CCP, Tarion covers:
- Water penetration through the basement or foundation.
- Defects in materials such as windows, doors, and caulking that make the home vulnerable to water penetration.
- Defects in electrical, plumbing, and heating systems.
- Defects in exterior cladding that result in detachment, displacement, or physical deterioration.
- Building Code violations that affect the health and safety of the occupants, such as issues related to fire safety, insulation, and ventilation.
3. Tarion 7 Year Warranty
The most extensive coverage under Tarion warranty corporation, lasting up to seven years after the CCP date, applies to major structural defects. These include any defect in work or materials that compromises the load-bearing function of the home or significantly impacts its intended use. Examples include significant damage due to soil movement, major cracks in basement walls, and the collapse or serious distortion of roof structures.
Exclusions from Tarion Coverage
While Tarion provides comprehensive protection, certain items and issues are excluded from Tarion insurance. Notably, minor aesthetic choices like the color of paint, cabinets, countertops, roofing, and fixtures are not eligible for monetary compensation. Other exclusions include:
- Defects in materials or work provided by the homeowner.
- Secondary damages, such as property damage and personal injury.
- Normal wear and tear, including shrinkage of materials as they dry.
- Damage caused by poor maintenance or alterations made by the homeowner.
- Subsidence of land around the building, unless it affects the building’s footings.
- Damage from natural disasters, insects, or rodents (except when due to Building Code violations).
- Surface defects acknowledged and accepted in writing by the homeowner at the time of the CCP.
Why Tarion Matters
Tarion plays a crucial role in protecting people buying a house in Ontario. It provides a framework that holds Tarion builders accountable and offers homeowners a means to address issues that may arise with their new property. Additionally, Tarion coverage is a prerequisite for accessing the First-Time Home Purchaser Land Transfer Tax Rebate, making it an essential consideration for anyone buying a new home or real estate Ontario.
As new construction projects continue to increase, understanding Tarion’s coverage and timelines is more important than ever. Being informed about your rights and the protections available can help ensure that your home-buying experience is as smooth and worry-free as possible.
