In a previous blog post, we outlined the details of what is covered under Tarion Warranty when purchasing a new-construction property from a Builder.

We often get inquiries from purchasers stating that they are buying a property from a “small builder” and are not sure what type of warranty coverage is being provided.

Our strong recommendation is NOT to purchase a property from a Builder unless there is sufficient proof that the Builder is registered and licensed under Tarion and the Ontario New Home Warranties Plan Act, R.S.O. 1990, c. O.31 (the “ONHWP Act”).

In the event you do find yourselves in a binding agreement to purchase a property from a Builder that is not registered with Tarion, there are statutory warranty provisions under the “ONHWP Act” that may be of use to you.

Every builder of a new home must provide the purchaser with the following representations and warranties as per section 13(1) of the ONHWP Act:

(a) That the home:

1. (is constructed in a workmanlike manner and is free from defects in material,
2. is fit for habitation, and
3. is constructed in accordance with the Ontario Building Code;

(b) That the home is free of major structural defects as defined by the regulations; and

(c) Such other warranties as are prescribed by the regulations.  R.S.O. 1990, c. O.31, s. 13 (1).

This warranty is valid for one year from when it takes effect and is enforceable even if there is any agreement to waive the rights to same!

Please feel free to contact one of our lawyers should you have questions about this topic.

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