RESOURCES

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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Taimoor Qureshi is an Associate Lawyer at Kormans LLP. You can reach Taimoor here: tqureshi@kormans.ca. The information and comments herein are for the general information of the reader and are not intended as advice or opinion to be relied upon in relation to any particular circumstances. For particular application of the law to specific situations, the reader should seek professional advice. Kormans LLP cannot be responsible for the content of other sites. We expressly disclaim all liability with respect to actions taken or actions not taken based on content received from a third party website linked, directly or indirectly, to that of Kormans LLP.  The link to another site is not to be construed in any way as an endorsement of the host, the site or the information contained therein, nor is such link to be inferred as an association or affiliation with the host.