Tarion and Condos

By Marcia Luke

By now, most of you know what Tarion is and what it does for new homeowners. But if you don't, here it is: Tarion governs the new home warranty protection offered by builders in Ontario.

The new home warranty protects you as a new owner from incidental flaws that might occur during the construction or the side effects of natural settling that can occur during the first year or so after a new home is completed. Tarion can help by acting as a third party to ensure the warranty is carried out as promised. This way, the homeowner can expect a certain quality of product.

Some of the items covered under the warranty include: deposit protection (up to $20,000), protection against defects in work and materials, protection against unauthorized substitutions (the developer must substitute materials for that of equal or greater quality), and protection against delayed closings or delayed occupancies without proper notice (minimum notice of 35 days and maximum delay of 135 days).

It's important to be aware that the warranty covers more than just the first year of home ownership. The warranty is active at varying degrees for up to seven years. In stages of one, two, and seven years, your warranty will cover different issues, issues you should be aware of if you're to make a claim at the appropriate time. Something that's only covered in the first stage will not be accepted in year three. Keep in mind that as an owner it is up to you to be proactive. Much of a warranty's success relies on the homeowner. It is the homeowner's responsibility to report and claim the things that are covered by the warranty. Tarion employees cannot be expected to do personal inspections as a warranty ends, therefore it's imperative the owner be the eyes and ears for their warranty.

Condominiums - Year One

The Pre-Delivery Inspection (PDI) is your first opportunity to make sure that everything in your condominium is the way it should be. The builder will take you through your condo, which is essentially finished at this point, and you can take note of anything that is missing, damaged, or different from how it should be. This is also your opportunity to ask any questions about your new condo, how its systems operate, or its features/finishes. A PDI is also completed for the common elements of the condominium by the condominium?s board of directors and the builder. This means that the common elements of the condominium are covered under the warranty as well. Any damages or defects you see in the common areas are reported to the condominium's board of directors so that they can decide what action needs to be pursued. A PDI Checklist can be found at www.tarion.com.

In the first year, there are two opportunities to make claims under the warranty. The first opportunity is the 30-day form and the second is the year-end form, to be submitted in the final thirty days of the first year. For both of these you must fill out the appropriate forms and submit them on time. The 30-day form should include anything that was missed during the PDI or things that weren't corrected after being noted during the PDI. The year-end form will ideally catch any of the effects of settling and of surviving a winter season.

In subsequent issues we will discuss Tarion and what it can do for new homeowners at the second and seven year stages of new home ownership.

For more information visit www.tarion.com/home or call 1-877-9TARION.

Forms and Documents

Schedule C - Sets out the boundaries between your unit and the project's common elements.

Pre-Delivery Inspection Form (PDI) - This form is filled out by yourself and the builder's representative during the PDI and outlines anything that's incomplete, damaged, missing, inoperable, or cannot be inspected because it's not installed or not visible.

Schedule F - Outlines the common elements and exclusive use common elements.

30-Day and Year-End Forms - These are forms that you fill out independently from the builder and submit to Tarion to claim items under warranty coverage.