requirements and health and safety standards of the...

Please keep this Homeowner Information Package in a safe placealong with copies of your Certificate of Completion and Possession

(CCP), and your purchase agreement (and its attachments). If you sell your home within seven years of the date of

possession, please give this booklet to the new owners. Coverage under the OOnnttaarriioo NNeeww HHoommee WWaarrrraannttiieess PPllaann AAcctt

remains in effect even if the home is sold.

The Homeowner Information Package will be updated periodically. Visit Tarion’s website at www.tarion.com to read the latest version.

TARION CUSTOMER CENTRE5150 Yonge Street, Concourse Level

TORONTO, ON M2N 6L8

Toll-Free Telephone: 1-877-9TARION (1-877-982-7466)

TM Trademark of Tarion Warranty Corporation.Printed in CanadaPublished in July, 2009

READ NOW to find out about your important statutory warranty process dates

HomeownerInformation

PackageA Guide to Your

New Home WarrantyFor all homes with a date of possession

on or after July 1, 2008

Manage your warranty online through the Homeowner Portal Register at www.tarion.com

* This publication provides a general overview of the coverages and procedures set out in the Act. If there is any conflict between this publication or the Act,the latter prevails. Tarion Warranty Corporation and your builder assume no liability for any omission or error in this publication. To view the full text ofthe Act, you should visit the Tarion website at www.tarion.com.

The contents of this publication will be updated periodically. This edition applies to freehold homes and condominium units with a date of possession on or after July 1, 2008 and does not apply to Condominium Common Elements.

Protecting your most important investmentYour new home is required to meet or surpass the structuralrequirements and health and safety standards of the OntarioBuilding Code. And like every new home in Ontario, it is protected by a mandatory warranty provided by your builder andbacked by Tarion Warranty Corporation (“Tarion”).

Tarion is a non-profit, private corporation established in 1976 toprotect new home buyers according to the terms of the OntarioNew Home Warranties Plan Act. Not only does the Act requirebuilders in Ontario to provide new home warranty coverage, butthey must also be registered with Tarion and enrol every newhome prior to the start of construction. The Act also gives Tarionresponsibility for managing a guarantee fund to ensure that thebuilder’s warranty will be honoured, and for enforcing the overallterms of the Act.

It is important that homeowners and builders are aware of andunderstand their rights and responsibilities under the Act.

Be Sure to Read and Keep this Booklet! Getting ready to move into your new home is an exciting andbusy time. However, it is important that you set aside some ofthat time to carefully read through this Homeowner InformationPackage* and become familiar with its contents. It describes your home’s statutorywarranties and the responsibilities of bothyou and your builder, and explains howTarion will handle a statutory warrantyclaim. Because of its importance, we recommend that you file this booklet withyour other new home documents so thatyou will be able to refer to it in the future.

If you are unsure about your rights underyour purchase agreement or the Act, youmay wish to seek the advice of a lawyer.

THIS IS AN IMPORTANTDOCUMENT1) Be sure to take the time

to read and understand its contents.

2) Keep it with your other new home documents for future reference.

3) If you have questions, call us at 1-877-9TARION (1-877-982-7466) or visit ourwebsite at www.tarion.com.

Manage your warranty online through our

new homeowner portal called MyHome

Register at www.tarion.com

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A G U I D E T O YO U R N E W H O M E WA R R A N T Y

As is the case with any important warranty,there are critical pieces of information (outlinedbelow) which you should be aware of. These and other useful points regarding your home’sstatutory warranty are covered in greater detail in this booklet.

1) Deposits Made to Your Builderare Covered

The deposit you make on your new home isprotected by Tarion, up to a maximum of$40,000 for freehold homes and $20,000 forcondominium units. Condominium depositsin excess of $20,000 are protected separately byOntario’s Condominium Act.

2) Delays in Closing or Occupancy are Covered

Every new home builder in Ontario mustprovide Delayed Closing or Occupancyprotection to purchasers. Delayed Closingprotection applies to freehold homes(excluding contract homes) and DelayedOccupancy protection applies to condominiumunits (see pages 7–11 for more details).

3) You Should Prepare for Your Pre-Delivery Inspection (PDI)

When your home is ready for Occupancy, yourbuilder is required to provide a PDI (see page4 for more details) so you have an opportunityto view the home in its completed state beforeyou move in. You should prepare well as this marks a key starting-off point in the newhome warranty process.

4) Statutory Warranty CoverageContinues for Seven Years

There are three statutory warranties that applyto your completed home: a one year warranty,a two year warranty and a seven year warranty.You can find detailed descriptions about thesewarranties beginning on page 12. With theexception of deposit coverage, all of yourstatutory warranties take effect on your home’sdate of possession and remain in effect even ifthe home is sold. Your builder may choose tooffer additional coverage as well.

Homeowner Information Package

5) Your Home is Covered for up to$300,000

You are entitled to statutory warranty coverageup to a maximum of $300,000 for most types ofclaims covered by the one, two and seven yearwarranties (some lesser limits apply to specificitems, such as septic systems).

6) Don’t Miss the Deadline for SubmittingYour 30-Day and Year-End Forms

You must use Statutory Warranty Formssupplied by Tarion to inform us of outstandingstatutory warranty items in your home. You have30 days, including the day you took possessionof your new home, to submit your 30-Day Formto your builder and Tarion. For example, if youtook possession of your new home onNovember 9, 2009, submit your 30-Day Form onor before December 8, 2009. It is youropportunity to inform Tarion of items listed onyour PDI Form and any new items that have notbeen addressed by your builder.

The next opportunity you will have to notify usof outstanding statutory warranty items is onyour Year-End Form. You must submit this Formduring the last 30 days of the first year ofpossession and before the first anniversary ofthe day you took possession of your new home.For example, if you took possession of yourhome on November 11, 2009, submit your Year-End Form to your builder and Tarion betweenOctober 11, 2010 and November 10, 2010.Timelines for submitting Tarion Forms must befollowed in order to protect your warranty rights(see pages 16 –17 for more details). Copies ofthe 30-Day Form, Year-End Form and Second-Year Form can be found at the back of thisbooklet or on our website at www.tarion.com.

7) Be Sure to Maintain Your New Home

Regular and proper maintenance of your homeis important. Please see page 23 and themaintenance checklist provided by Tarion. Yourbuilder is obliged to explain the use andmaintenance of major systems in the home. Youwill see that improper maintenance canadversely affect coverage of certain items.

8) Work with Your Builder to Resolve Deficiencies

By law, your builder must provide you with statutory warranties described in thisHomeowner Information Package. Tarion steps into enforce these obligations if the warranties arenot honoured. It is important that you maintaincommunication with your builder to assist inresolving deficiencies in your new home.

EIGHT TIPS ABOUT YOUR NEW HOME WARRANTY



A G U I D E T O YO U R N E W H O M E WA R R A N T YA G U I D E T O YO U R N E W H O M E WA R R A N T Y

Your Home’s Statutory Warranty –Roles and Responsibilities . . . . . . . . . . . . . . . . . . . . 1

� The Homeowner’s Role . . . . . . . . . . . . . . . . . . . . . . . . . . . 1� The Builder’s Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2� Tarion’s Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

The Pre-Delivery Inspection (PDI) . . . . . . . . . . 4

� The PDI Form and Certificate of Completion and Possession . . . . . . . . . . . . . . . . . . 5

� What Should I Look for During the PDI? . . . . . 5� The PDI for Common Elements . . . . . . . . . . . . . . . . 6� What are Substitutions? . . . . . . . . . . . . . . . . . . . . . . . . . . 6� What Happens to the PDI Form? . . . . . . . . . . . . . . . 6

Your Home’s Statutory Warranty – What’s Included . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

� Deposit Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7� Financial Loss for Contract Homes . . . . . . . . . . . . 7� The Delayed Closing and Delayed Occupancy

Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Section A: For purchase agreements signed on/before June 30, 2008 . . . . . . . . . . . . . . . . . . 8Section B: For purchase agreements signed on/after July 1, 2008 . . . . . . . . . . . . . . . . . . . . 10

� The One Year Warranty . . . . . . . . . . . . . . . . . . . . . . . . 12� The Two Year Warranty . . . . . . . . . . . . . . . . . . . . . . . . 12� The Seven Year Warranty . . . . . . . . . . . . . . . . . . . . . . 13� Proving Your Statutory Warranty Claim . . . . 13� Your Home’s Statutory Warranty –

What’s Excluded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14� Contract Homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15� Other Types of New Homes . . . . . . . . . . . . . . . . . . . 15

Protect Your Statutory Warranty – Submit Your Forms On Time . . . . . . . . . . . . . . . 16

� Statutory Warranty Forms . . . . . . . . . . . . . . . . . . . . . 16� The 30-Day Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17� The Year-End Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17� The Second-Year Form . . . . . . . . . . . . . . . . . . . . . . . . . 17� The Major Structural Defect Form . . . . . . . . . . . 17

The Statutory Warranty Process – After Form Submission . . . . . . . . . . . . . . . . . . . . . . . 18

� The Initial Builder Repair Period . . . . . . . . . . . . . 18� Your Time Period to Request

Tarion’s Involvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18� The Builder’s Second Repair Period . . . . . . . . . . 18� Tarion Conciliates the Matter

(Adjudicates the Dispute) . . . . . . . . . . . . . . . . . . . . . . 19� Final Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19� The Right to Appeal a Tarion Decision . . . . . . 19� New Home Buyer Ombudsperson Office . . . . 19

Exceptions to the Statutory Warranty Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

� Emergencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20� Seasonal and Special Seasonal

Warranty Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21� Air Conditioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22� Extraordinary Situations . . . . . . . . . . . . . . . . . . . . . . . 22

Maintaining Your New Home . . . . . . . . . . . . . . 23

� Control the Moisture in Your New Home – It’s Important! . . . . . . . . . . . . . . . . . . . 23

� Home Maintenance Checklist . . . . . . . . . . . . . . . . . 25

Glossary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Statutory Warranty Forms (included in Back Pocket of this Booklet)

� The Confirmation of Receipt of theHomeowner Information Package Form

� The 30-Day Form� The Year-End Form� The Second-Year Form� Delayed Closing/Occupancy Claim Forms

CONTENTS

As required by the Ontario New Home WarrantiesPlan Act, every new home built in Ontario comeswith specific warranty coverage provided by yourbuilder (and backed by Tarion) or provided byTarion directly. This booklet provides details aboutyour home’s statutory warranty coverage and theprocess for addressing warranty-related matters.

The Statutory Warranty Process involves threeparties: the homeowner, the builder and Tarion.Each party has specific roles and responsibilitieswhich are outlined below.

The Homeowner’s RoleThere are a few things you must do to protect yourhome’s statutory warranty. Doing so will helpensure that you have a successful new homeexperience and failing to do so could put yourhome’s statutory warranty in jeopardy. To protectyour home’s statutory warranty:

1) You should attend the Pre-Delivery Inspection(“PDI”) with your builder in order to viewyour home before you take possession to assess its condition at that time and ensurethat any deficiencies are noted on the PDIForm provided by your builder. Use thisopportunity to learn how to operate yourhome’s systems, including heating, electrical,plumbing and air conditioning.

2) Complete the appropriate Statutory WarrantyForm(s) and submit them to Tarion on time.The required Forms for most of the items thatmay arise during the first two years ofpossession are included in this booklet.Please see page 16 for more detail about Forms.

3) Send a copy of your completed StatutoryWarranty Form(s) to your builder so they canrepair or otherwise resolve the items. Be sureto provide your builder and their tradespeoplewith access to your home during regularbusiness hours to make any necessary repairs.

4) After you submit a Statutory Warranty Form,your builder has a specific period of time inwhich to repair or otherwise resolve thewarranted items listed. If these items are notresolved within the appropriate time period(see page 18 for details about the InitialBuilder Repair Period), then you have 30 daysin which to contact Tarion to request aconciliation inspection. If you do not contactus within 30 days, we will not be able to helpresolve the situation, unless it’s an emergency.

For information about which construction deficiencies are and are not covered by the statutory warranty, please see the Construction Performance Guidelines at www.tarion.com.

Your Home’s Statutory Warranty – Roles and Responsibilities

1



5) It is important that you properly maintainyour home, as improper maintenance canaffect warranty eligibility. To help you do this,a maintenance information section is includedon page 23 of this booklet. If your builder hasprovided you with additional maintenanceguidelines, you should also refer to them.

6) Take the time to read through your purchaseagreement and review it with a lawyer. Thepurchase agreement is a contract between youand your builder which describes the termsunder which your new home will be provided,and it is important that you understand whatthese terms are.

The Builder’s RoleYour home is covered by the statutory warranty forseven years and your builder is responsible forfollowing the minimum customer servicerequirements to address warranty items as outlined in this booklet.

Your builder must:

1) Provide you with a copy of the HomeownerInformation Package at or before your Pre-Delivery Inspection (“PDI”) (described on page 4). It must contain your builder’scontact information for use should anemergency arise (this may be in a coveringletter or on a business card inserted into theinside back pocket). To confirm receipt ofthis booklet, you or your designate will beasked to initial the box on the Certificate ofCompletion and Possession (“CCP”) under the heading “Receipt of HomeownerInformation Package.”

2) Conduct a PDI of your completed home before you take possession to assess itscondition. At the PDI, they must provide youwith a copy of a completed PDI Form notingany deficiencies, unauthorized substitutions oritems that cannot be inspected because they areincomplete, missing, inaccessible or obscuredfrom view. Your builder should also take sometime to show you how to operate your home’s

systems (including heating, electrical, plumbingand air conditioning).

3) Provide you with a completed CCP for yourhome, including the date of possession (the dateon which your builder transfers the right ofoccupancy of the home to you). This is the dateon which your home’s one, two and seven yearwarranties begin.

4) Provide warranty service based on the regulatorytime periods described in this booklet. The timeperiods for repairs may vary depending onwhether the repair method would be affected bythe weather.

Your builder may choose to offer higherend workmanship or materials and/or additionalwarranties over and above the statutory warranty.You should refer to your purchase agreement todetermine whether your builder has agreed toprovide such supplemental work, materials orwarranties on your home.

2

Tarion’s RoleTarion is responsible for ensuring that new homebuilders provide the warranty coverage thathomeowners are entitled to under the Ontario NewHome Warranties Plan Act (“the Act”) and forensuring they follow minimum customer servicestandards to repair or otherwise resolve warranteditems in a new home.

As prescribed by the Act, Tarion’s responsibilitiescover three main areas:

1. Education� We offer a variety of information and

resources to help homeowners and builders understand their rights and obligations under the Act.

� Should you have any questions about your home’s statutory warranties, please feel free to contact us during regular business hours at 1-877-9TARION (1-877-982-7466), or refer to our website at www.tarion.com.

2. Warranty Enforcement� We work with homeowners and builders to

help resolve disputes about statutory warrantycoverage, however Tarion is able to becomeinvolved in a claim only at a homeowner’srequest so be sure to file your StatutoryWarranty Forms on time as you will not beable to request our help unless you do so(please see page 16 and 20 for more details).

� We manage a guarantee fund to ensure thatthe statutory warranty provided to newhome buyers is honoured if the builderrefuses to do so, or in the event of builderbankruptcy. Tarion’s guarantee does notextend to any supplementary warrantiesprovided by the builder or any contractualprovisions beyond the statutory warranty.

3. Builder Licensing� We act as the Regulator of the home building

industry in Ontario, and as such areresponsible for licensing all new home andcondominium builders in the province. Aspart of the licensing process, builders mustdemonstrate that they have the technicalexperience, customer service capabilities andfinancial standing required to successfullybuild new homes in Ontario.

3



The Pre-Delivery Inspection (“PDI”) takes placewhen your new home is ready for occupancy,making it the first opportunity to view yourcompleted home and assess its condition beforeyou take possession. During the PDI, you and/oran individual you select to attend (yourdesignate) will be given the opportunity toexamine the interior and exterior of the homewith your builder or your builder’s representativepresent. The objective of this inspection is tomake a written record of all items that areincomplete, damaged, missing, inaccessible,not operating properly or otherwise deficient.

One purpose of this record is to minimize later disputes between you and your builder as to who is responsible for damaged items byallowing your builder to have, as early aspossible, a list of your issues and concerns to work from. If you identify a defect duringyour PDI, your builder should note it on thePDI Form to establish that it existed prior toClosing and thus was not caused by you. It isyour builder’s responsibility to list these itemsand provide you with a copy of the completedPDI Form.

It is also the builder’s responsibility to explainhow the various systems in your home work –including the heating, electrical, plumbing andair conditioning – making the PDI a goodopportunity for your builder to go throughthem with you. It is very important that youunderstand how to operate your home’s systemsbecause not using them properly could affectyour warranty coverage.

Due to the importance of the PDI, we suggest that you choose a different time to show your new home to family and friends.Your focus during the inspection should be onobserving the home itself, listening to theinstructions provided by your builder andensuring that a complete list of deficiencies ismade by your builder.

Using a Designate at the PDIYou can have someone accompany you to the PDI or send a designate to attend on your behalf. There is no restriction as to whom you may choose to be your designate. However, ifyou intend to send a designate to the PDI in your place, your builder may require you to notify them in advance and to provide written authorization that this person may sign the PDI Form or the CCP on your behalf.Check your purchase agreement to see if such notification is required.

The Pre-Delivery Inspection (PDI)

4

The PDI Form and Certificate of Completion and Possession During the PDI, your builder will provide a PDIForm which will serve as the official record of thecondition of your home before you move in. Yourbuilder must review it with you or your designate.After all the items are recorded on the PDI Form,take care to review the list and ensure it iscomplete. You or your designate will be asked tosign it to confirm that the listed items are completeand accurate.

IMPORTANT:The PDI Form is not the same as a StatutoryWarranty Form, such as the 30-Day Form. It issimply a formal record of your new home’scondition before you moved in and will be usedby Tarion as a reference for assessing futurestatutory warranty claims. You must use aStatutory Warranty Form to initiate theStatutory Warranty Process. So, if you find thatany of the items listed on the PDI Form have notbeen repaired or otherwise resolved, you shouldlist them on the 30-Day Form.

You will also be asked to review and sign aCertificate of Completion and Possession. Thisdocument states your home’s enrolment numberwith Tarion and the date of possession, which isalso the start date of your home’s statutorywarranty. Your builder will give you copies of thecompleted PDI Form and CCP for your recordsand forward the CCP to us.

What Should I Look for During the PDI?During the PDI, you should identify any damaged,incomplete or missing items, as well as anythingthat is not operating properly or deficient in termsof workmanship or materials, and items that

cannot be assessed because they are obscured fromview or inaccessible. All such items should beincluded on the PDI Form.

Be sure to examine both the interior and exteriorof the home. While inside, look for things likechips in the porcelain or scratches on countertops,damage to floors or walls, and doors and windowsthat are not secure or do not open and close easily.When you go outside, check things like the qualityof brickwork and siding, whether window screenshave been installed, and the appearance of thedriveway and landscaping.

You should also note on the PDI Form anyunauthorized “substitutions” of items to be selected under or referred to in your purchase agreement. You should bring a copy of your purchase agreement with you to the PDIfor reference.

A more detailed description of the PDI – includinga checklist of interior and exterior items thatshould be examined – can be found in thebrochure called “Getting Ready for the Pre-Delivery Inspection,” which is published by Tarionand available in the Resources Section of ourwebsite at www.tarion.com.

Although the PPDDII FFoorrmm is arecord, not a claim, it is important that it isaccurate and thorough in order to formallycommunicate to your builder any items thatwere noted before you took possession ofyour new home. Your builder may respondto all the issues listed on your PDI Form, butTarion will only require resolution of theissues that are included on a StatutoryWarranty Form and found to be warranted.

5



The PDI for Common Elements(Applies to Condominiums Only)

Condominium Common Elements are notincluded in the PDI of your unit. Thecondominium Board of Directors may complete a separate PDI with the builder for all of thecommon elements. If you see any damage ordefects in the common elements, you should notify the Board of Directors so that they candecide whether to record them in a commonelements PDI or to take action under the commonelements warranty.

What are Substitutions?If your purchase agreement gave you the right toselect certain items of construction or finishing,such as colours and styles, these usually cannot besubstituted without your written consent. Inaddition, if your purchase agreement states thatyour new home will include particular items (suchas a certain model of appliance or a specific brandof window) but does not give you the right tomake a selection, then such items can only besubstituted with items of equal or greater quality.

If you think that an unauthorized substitution hasoccurred, it should be noted in the PDI Form. Ifyou are unsure about your rights regardingunauthorized substitutions, you may wish to seekthe advice of a lawyer.

What Happens to the PDI Form?Once the PDI Form has been completed andsigned, your builder will give you a copy foryour records and is required to keep it. Yourbuilder will submit the original form to us if aconciliation inspection is scheduled or at any othertime it is required by you or Tarion.

IMPORTANT: The PDI Form is not the same as a StatutoryWarranty Form, such as the 30-Day Form. It

6

The Act protects new homeowners by requiringthat all builders repair or otherwise resolve anyitem in a new home that is covered by the statutorywarranty. Like any warranty, it is important tounderstand what is and is not covered.

The following sections outline the variouswarranties and protections that are guaranteed tonew homeowners under the Act, and should beread with care. Exclusions are described on page 14 and should also be carefully noted.

Your home’s statutory protection begins before youmove in, providing both deposit protection andcompensation for Delayed Closing and DelayedOccupancy. After you move in, there are threespecific statutory warranties: the one yearwarranty, the two year warranty, and the seven yearwarranty covering major structural defects.

These warranties begin on the date you takepossession of your new home, which may bedifferent than the Closing Date. If you would likemore details about any aspect of your home’sstatutory protection, please visit our website atwww.tarion.com or contact us.

You are entitled to warranty coverage up to amaximum of $300,000 for most types of claimscovered by the one, two and seven year warranties.There is a maximum of $15,000 for warranteddamage caused by environmentally harmfulsubstances or hazards, and a maximum of $25,000for coverage of septic systems.

You should refer to your purchase agreement todetermine whether your builder will provide fasterservice or additional warranties or agree to mattersover and above items warranted by statute. Tarion’sguarantee extends to the statutory warranty butnot to supplementary contractual provisions in thepurchase agreement.

Deposit ProtectionYour deposit is protected by Tarion, up to amaximum of $40,000 for freehold homes and$20,000 for condominium units in the event thatyour builder is unable to complete the sale of yournew home because of bankruptcy, your builder’sfundamental breach of the purchase agreement, orin the event that you are otherwise legally entitledto treat your purchase agreement as terminated.

To make a claim for a deposit refund, pleasecontact us at 1-877-9TARION (1-877-982-7466).

Before treating your purchase agreement asterminated and to ensure that your claim will bewithin the scope of the deposit protection underthe Act, you may wish to consult a lawyer.

Financial Loss for ContractHomesIf you have entered into a contract with a builderto construct a freehold home on land that you own(a “Contract Home” – see page 15), the money thatyou pay to the builder under the constructioncontract will be protected up to $40,000. In theevent that the builder fails to substantially performthe contract, Tarion will pay the difference betweenthe value of the work and materials supplied by thebuilder and the amount you paid the builder, up toa total of $40,000.

To make a claim for a financial loss on a contracthome, please contact us at 1-877-9TARION (1-877-982-7466).

The Delayed Closing andDelayed Occupancy Warranties Under the delayed closing warranty, your builderguarantees that your home will be ready for you tomove in either by a Closing Date specified in thepurchase agreement or by a date that has beenproperly extended if circumstances occur thatdelay the home’s completion. In many cases, yourbuilder will be required to compensate you if adelay occurs.

Your Home’s Statutory Warranty – What’s Included

7


Condominium deposits in excess of $20,000 and up to an additional $20,000 are protected by the excessdeposit provisions of the Condominium Act.

1

1

If you have received a paymentfrom another party or other benefit inrespect of warranted items, any payment duefrom Tarion will be reduced by the amountof such payment or benefit.


There are two sets of delayed closing and delayedoccupancy warranties, which are described inSections A and B below.

� Freehold home buyers: the warranty thatapplies to your home is based on the date onwhich you signed the purchase agreement.

� Condominium buyers: the warranty thatapplies to your home is based on the date thatthe purchase agreement for the first unit soldin your condominium project or phase wassigned. (Ask your builder to provide thisinformation to you.)

If you are unsure about your rights regardingdelayed closing or delayed occupancy, you maywish to seek the advice of a lawyer.

Section A: Applies to purchase agreementssignedonor before June 30, 2008If you are entitled to delayed closing/occupancycompensation, as described below, you can make aclaim to your builder after you complete thepurchase of your new home at any time during thefirst year of possession. If your builder does notpay your claim or if you and your builder cannotagree on the amount of compensation payable, youmay then make a claim to Tarion during the firstyear of possession. To do so, please contact us toobtain a Delayed Closing/Occupancy Form package.Be sure to keep all receipts and other supportingdocuments related to your expenses during theperiod in which the Closing or Occupancy wasdelayed, as you may be required to provide themduring the assessment of your claim.

Freehold Home Buyers

With proper written notice as described in thesection below, your builder may delay the Closingof your home for up to 120 days without payingyou compensation. Your builder may also delayclosing for up to five days without giving notice orpaying compensation. However, if the Closing Dateof your new home is delayed more than five dayswithout proper written notice, or more than 120days in total from the Closing Date specified inyour purchase agreement (either the originalClosing Date or a new Closing Date specified in anamendment to the purchase agreement agreed toby you and your builder), then you may be entitledto compensation from your builder up to amaximum of $5,000.

There is no compensation for unavoidable delayssuch as strikes and fire or for delays for which youare responsible.

Note: Should you agree to extend your ClosingDate by way of an amendment to your purchaseagreement, you may not be eligible for compensation.

8

When proper written notice is given, your builderis also allowed to extend the Closing Date of yournew home once, as follows:

� Closing may be extended by up to 15 days ifthe builder gives you written notice of a newClosing Date at least 35 days in advance; or

� Closing may be extended by up to 120 days, ifthe builder gives you written notice of a newClosing Date at least 65 days in advance. If thisnew date is insufficient, your builder may thendelay closing by a further 15 days, if they giveyou proper written notice of a new ClosingDate at least 35 days in advance and if the finalnew Closing Date is not more than 120 dayslater than the original Closing Date specifiedin your purchase agreement.

Termination of the Purchase Agreement

If the Closing Date of your home is delayed morethan 120 days from the Closing Date specified inyour purchase agreement (or in an amendment toit), you have the right to terminate the agreementbetween day 121 and day 130. If you don’tterminate the agreement by day 130, your builderis entitled to additional delays of up to 120 days intotal. During this time, your new Closing Date willbe deemed to be the date that is five days after the

date on which construction of your home iscompleted. If the further 120 days expire withoutclosing, and you and your builder cannot mutuallyagree to a new Closing Date, then the agreementwill automatically terminate and your builder mustrefund your deposit plus interest for the periodthat has elapsed beyond the initial 120-day delay.

Condominium Buyers

If proper written notice is provided (see below fordetails), your builder may delay occupancy of yourcondominium unit for up to 135 days after settinga confirmed Occupancy Date without payingcompensation. Your builder may also delayoccupancy for up to five days without giving noticeor paying compensation. However, if theOccupancy Date of your new home is delayedmore than five days without proper written notice,or more than 135 days in total from the confirmedOccupancy Date which may be specified in yourpurchase agreement (or set in accordance withyour purchase agreement), then you may beentitled to compensation from your builder up to amaximum of $5,000. There is no compensation forunavoidable delays such as strikes and fire or fordelays for which you are responsible.

Note: Should you agree to extend your confirmedOccupancy Date by way of an amendment to yourpurchase agreement, you may not be eligible for compensation.

Confirmed and Tentative Occupancy Dates

Every purchase agreement for a condominium unitmust include either a confirmed Occupancy Dateor a tentative Occupancy Date. If a tentativeOccupancy Date is given, your builder is requiredto inform you in writing of the confirmedOccupancy Date no later than 30 days after theroof assembly is completed (or another specificstage of construction as specified in the purchaseagreement). If you are not given notice of theconfirmed Occupancy Date by at least 90 daysbefore the tentative Occupancy Date, then thetentative Occupancy Date will automaticallybecome the confirmed Occupancy Date for thepurpose of calculating compensation for the delay.

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When Proper Written Notice Must be Given

Once the confirmed Occupancy Date is established,your builder is allowed to extend it as follows:

� Once by up to 15 days if written notice of anew confirmed Occupancy Date is provided atleast 35 days in advance; or

� Once by up to 120 days if written notice of anew confirmed Occupancy Date is provided atleast 65 days in advance. If that is insufficient,your builder may extend the Occupancy Dateby a further 15 days, if proper written notice ofa new confirmed Occupancy Date is providedat least 35 days in advance, and if the final newconfirmed Occupancy Date is not more than135 days later than the original confirmedOccupancy Date.

Section B: Applies to purchaseagreements signed on or afterJuly 1, 2008.*

If you are entitled to delayed closing/occupancycompensation, you may make a claim to yourbuilder within 180 days of your Closing/OccupancyDate or the date on which you terminate yourpurchase agreement, as described below. Be sure to attach all receipts and other supportingdocuments for costs incurred as a result of theClosing/Occupancy delay, so that your builder canresolve your claim with you. Keep copies of yourreceipts and other supporting documents, althoughreceipts relating to living expenses are not required.

If your builder does not pay your claim, or if youand your builder are unable to agree on the amountof compensation payable, you may make a claim toTarion during the first year of possession of yournew home (or up to 365 days after you terminatedthe purchase agreement). To do so, please completethe Delayed Closing/Occupancy Claim Formincluded with this booklet. Be sure to attach copiesof all receipts and other supporting documents forcosts incurred as a result of the Closing delay, otherthan for living expenses for which a set per dayamount is payable without receipts.

Freehold Home Buyers

There is an Addendum to your purchaseagreement that clearly indicates when your builderexpects to finish your home, as well as the latestdates permitted for extensions and Closing. Whenyou sign your purchase agreement, your buildermust also complete and attach this Addendum,which is provided by Tarion and includes aStatement of Critical Dates as its first page thatsummarizes these key dates. It must be signed byboth you and your builder.

If your new home is not ready on the Closing Datemutually agreed upon by you and your builder, orby a date that was properly extended as per theAddendum, then your builder must compensateyou for all costs incurred by you as the result of thedelay up to a maximum of $7,500 (including afixed amount of $150 per day for living expenses).


The Addendum also specifies a date on which thePurchaser’s Termination Period begins. This is aperiod of 30 days during which you have the rightto terminate the transaction if closing has notoccurred. Should this occur, you are entitled toDelayed Closing Compensation and a full refundof all monies paid (i.e., deposits, extras, upgrades)plus interest.

In rare circumstances (for example, in the event of astrike or a fire), a Closing Date may be unavoidablydelayed by your builder. In such cases, your buildermust inform you at the outset of the delay(including an estimate of how long the delay isexpected to last) and must provide written noticeas soon as the delay has ended. More detail aboutunavoidable delays is available in the DelayedClosing section of the Tarion website,www.tarion.com.

10* Capitalized terms in this section are defined in The Addendum to the purchase agreement.

Eligibility for Delayed Closing Compensation

Delayed Closing Compensation is payable if:

� Closing occurs on a date after your home’sFirm Closing Date; or

� Closing is delayed beyond the Outside Closing Date, and you exercised your right toterminate the purchase agreement during thePurchaser’s Termination Period described inyour Addendum.

Compensation includes a fixed amount of $150 aday for living expenses (meals and accommodation)for each day of delay until the Delayed ClosingDate or the date of termination of the purchaseagreement, plus other costs incurred by you as aresult of the delay (such as additional moving andstorage costs). Delayed closing compensation ispayable from 10 days before the Firm Closing Date(i.e., an increase of $1,500 (10 days x $150) if yourbuilder fails to give you at least 10 days notice of aClosing delay). The maximum amount of delayedclosing compensation payable to you is $7,500.

Condominium Buyers

There is an Addendum to your purchaseagreement that indicates when your builderexpects to finish your condominium unit, as wellas the latest dates permitted for extensions andOccupancy. When you sign your purchaseagreement, your builder must also complete andattach this Addendum, which is provided byTarion and includes a Statement of Critical Datesas its first page that summarizes these key dates. Itmust be signed by both you and your builder.

If your new condominium unit is not ready on theOccupancy Date mutually agreed upon by you andyour builder, or by a date that was properlyextended as per your Addendum, then your buildermust compensate you for all costs incurred by youas the result of the delay up to a maximum of$7,500 (including a fixed amount of $150 per dayfor living expenses). The delayed occupancywarranty does not apply to CondominiumCommon Elements.


The Addendum also specifies a date on which thePurchaser’s Termination Period begins. This is aperiod of 30 days during which you have the rightto terminate the transaction if Occupancy of yourcondominium unit has not taken place. Shouldthis occur, you are entitled to Delayed OccupancyCompensation and a full refund of all monies paid(i.e., deposits, extras, upgrades) plus interest.

In rare circumstances (for example, in the event ofa strike or fire), an Occupancy Date may beunavoidably delayed by your builder. In such cases,your builder must inform you of the delay(including an estimate of how long the delay isexpected to last) and must provide written noticeas soon as the delay has ended. In addition, yourbuilder must provide you with a new OccupancyDate(s), adding the length of the delay onto theoriginal dates shown on your Addendum.

Eligibility for Delayed Occupancy Compensation

Delayed Occupancy Compensation is payable toyou if:

� The Firm Occupancy Date is not met; or

� Occupancy is delayed beyond the OutsideOccupancy Date and you exercised your rightto terminate the purchase agreement duringthe Purchaser’s Termination Period describedin your Addendum.

Compensation includes a fixed amount of $150 aday for living expenses(meals and accommodation)for each day of delay beyond the Firm OccupancyDate, plus other costs incurred by you as a result ofthe delay (such as additional moving and storagecosts). Delayed Occupancy Compensation is payablefrom 10 days before the Firm Occupancy Date (i.e.,an increase of $1,500 (10 days x $150) if yourbuilder fails to give you at least 10 days notice ofdelay of the Firm Occupancy Date). The maximumamount of delayed occupancy compensationpayable to you is $7,500 and compensation ispayable only if Occupancy occurs or if the purchaseagreement is terminated.

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The One Year Warranty Your home’s statutory one year warranty coveragebegins on the date you take possession of the homeand ends on the day before the first anniversary ofthis date. For example, if your home’s date ofpossession is November 8, 2009, the one yearwarranty begins on November 8, 2009 and ends onNovember 7, 2010. The one year warranty isprovided by your builder and it requires that thehome be:

� Constructed in a workmanlike manner and free from defects in material;

� Fit for habitation;

� Constructed in accordance with the Ontario Building Code; and

� Free of major structural defects.

The statutory warranties remain in effect even ifthe home is sold.

Note: Your home’s date of possession will bespecified in your Certificate of Completion andPossession and in some cases may not be the sameas your Closing Date.

The Two Year Warranty Your home’s statutory two year warranty coveragebegins on the date you take possession of the homeand ends on the day before the second anniversaryof this date. For example, if your home’s date ofpossession is November 8, 2009, the two yearwarranty begins on November 8, 2009 and ends onNovember 7, 2011. The two year warranty isprovided by your builder and covers:

� Water penetration through the basement or foundation walls;

� Defects in materials, including windows, doorsand caulking, or defects in work that result inwater penetration into the building envelope;

� Defects in work and materials in the electrical,plumbing and heating delivery and distributionsystems;

� Defects in work or materials which result in thedetachment, displacement or deterioration ofexterior cladding (such as brickwork,aluminum or vinyl siding);

� Violations of the Ontario Building Codeaffecting health and safety (including, but notlimited to, violations relating to fire safety andthe structural adequacy of the home); and

� Major structural defects*.

12* Major structural defects are specifically defined in the Act, and are discussed in more detail on page 13

of this booklet.

Homes are the result of theapplication of human trade skills to a widevariety of materials which by their nature are notperfect. Terms such as “workmanlike” and “freefrom defects in material” are therefore notintended to mean perfection. Reasonabletolerances should be expected. Tarion’s decisionsabout warranty coverage are based on industry-accepted standards many of which are gathered

for ease of reference in the ConstructionPerformance Guidelines available for review onthe Tarion website.

You should be aware that natural settling and thedrying of construction materials will take placein your new home during the first year and thismay affect items that are both warranty-relatedand non-warranty related.

The Seven Year Warranty Your home’s seven year warranty covers majorstructural defects (MSD) and begins on the dateyou take possession of the home and ends on theday before the seventh anniversary of that date. Forexample, if your home’s date of possession isNovember 8, 2009, the seven year MSD warrantybegins on November 8, 2009 and remains in effectuntil and including November 7, 2016.

A major structural defect is defined in the Act as:

� Any defect in work or materials that results inthe failure of a load-bearing part of the home’sstructure or materially and adversely affects itsload-bearing function; or

� Any defect in work or materials that materiallyand adversely affects the use of the building asa home.

The seven year MSD warranty includes significantdamage due to soil movement*, major cracks in basement walls, collapse or serious distortion of joints or roof structure and chemical failure of materials.

In addition to the general exclusions described onpage 14, the seven year MSD warranty specificallyexcludes: dampness not arising from failure of aload-bearing portion of the building; damage todrains or services; and damage to finishes.

Proving Your Statutory Warranty ClaimThe Ontario New Home Warranties Act places theonus on you to show that there is a warranteddefect in your home. “Onus” means that you arerequired to show Tarion the defect about whichyou are reporting. In most cases, this is donesimply by pointing out a problem or damage – acrack in a floor would be an example. Once theproblem has been pointed out, Tarion will be ableto assess whether the problem is “warranted.” Aproblem is warranted if it falls below the standardsrequired by the statutory warranty; for example, aproblem is an item that amounts to a defect inwork and materials.

For information about what is and is not coveredunder the statutory warranty, please consult theConstruction Performance Guidelines which areavailable on our website at www.tarion.com.They describe many of the most commonwarranty items that homeowners submit to Tarion and indicate which are covered by thestatutory warranty.

If the defect you are reporting on is not in theConstruction Performance Guidelines, or is notreadily visible or explainable, you may wish toretain outside assistance to help establish yourclaim. If your claim was denied because of lack ofevidence, and you are uncertain of what kind ofevidence would help you, you should contact theField Claims Representative who conducted yourconciliation inspection.

If the defect you are reporting on is a MajorStructural Defect, you should also considerobtaining expert engineering evidence to helpsupport your claim.

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* Soil movement means subsidence, expansion or lateral movement of the soil not caused by flood,earthquake, “acts of God” or any other cause beyond the reasonable control of the builder.


Your Home’s Statutory Warranty – What’s ExcludedThe following conditions and/or items are not covered by the statutory warranty:

Homeowner Action/Involvement

� The statutory warranty applies to new homesbuilt by a builder. If you as homeownerexercise significant control over construction(e.g., entering into contracts directly withsubtrades) or contribute one or more essentialelements (e.g., footing/foundation, exteriorcladding, building envelope, or an electrical,plumbing or heating system), then the homemay not qualify for the statutory warranty.

� Damage resulting from improper maintenancesuch as dampness or condensation caused bythe homeowner’s failure to maintain properventilation levels or improper operation of ahumidifier, hot tub or other moisture-producing device. Please see page 23 forinformation about how to ensure you areproperly maintaining your new home.

� Alterations, deletions or additions made by thehomeowner (such as changes to the directionof the grading or the slope of the ground awayfrom the house).

� Defects in materials, design and work suppliedor installed by the homeowner/purchaser.

� Damage caused by the homeowner or visitors.

Note: The Pre-Delivery Inspection andcompletion of a PDI Form during thisinspection are very important in terms ofresolving potential disputes about who isresponsible for damage in the home. If you areclaiming an item of damage that is not listedon the PDI Form, it will be important for youto provide some explanation as to how thedamage was caused and why it was not listedon the PDI Form (for example, if the damage was caused later during repair work to the home).

Normal Wear and Tear

� Normal wear and tear, such as scuffs andscratches to floor and wall surfaces caused by homeowners moving, decorating and/orday-to-day use of the home.

� Normal shrinkage of materials that dry out after construction (such as nail “pops”or minor concrete cracking).

� Settling soil around the house or along utility lines.

Third Party Damage

� Damage arising from municipal services and utilities.

� Damage from floods, “acts of God”, wars,riots or vandalism.

� Damage from insects or rodents, unless it isthe result of construction that does not meetthe Ontario Building Code.

Secondary/Consequential Damage

� Secondary damage caused by defects underwarranty. While the defects themselves arecovered, the personal or property damage theycause is not. However, your homeownerinsurance may cover such secondary orconsequential damage.

� Personal injury and loss of income associatedwith defects or repairs.

Supplementary Warranties/Agreements

� Warranties or agreements provided by yourbuilder over and above the statutory warranty.Such matters are between you and your builderand are not enforced by Tarion.

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Contract HomesIn general terms, a “contract home” is a home thatis built on land (a vacant lot, for example) that isalready owned by the prospective homeowner.The home is constructed in accordance with aconstruction contract between the homeownerand a builder, and a contractor undertakes theperformance of all of the work and the supply of all materials necessary to construct thecompleted home.

If a homeowner, rather than a contractor, exercisessignificant control over the construction of a newhome, or is responsible for contributing essentialelements to it, the home may no longer becharacterized as a contract home, but rather itbecomes an “owner-built home.” This is importantbecause a contract home is entitled to statutorywarranty coverage (except for Delayed ClosingCoverage) but an owner-built home is not.

As an owner, the important thing to remember isthat the statutory warranty is intended for homeswhere a builder does the work. It is not meant toprotect a landowner who is building a home, or forsituations where separate contractors are buildingdifferent stages of a home.

If you are building a contract home, it isrecommended that you visit the Tarion website forinformation. You should also consult a lawyer toassist you with the construction contract andexplain your rights and obligations.

Other Types of New HomesThere are other types of new homes that may ormay not be entitled to statutory warranty coverage.Information on these is available throughwww.tarion.com.

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Tarion is responsible for ensuring that buildersprovide the warranty coverage that homeownersare entitled to under the Act and for ensuring thatthey follow minimum customer service standardsto repair or otherwise resolve warranted items.We work with homeowners and builders to resolvedisputes about statutory warranty coverage and todetermine how repairs should be completed andhow much time they will require. Under the Act,Tarion is able to become involved in a claim onlyat the homeowner’s request, so be sure to file yourStatutory Warranty Forms on time as you will notbe able to request our help unless you do so.

When considering whether to submit a StatutoryWarranty Form, you should refer to your PDIForm or purchase agreement to determine whetherany items remain outstanding or unresolved. If youare in doubt as to whether an outstanding item iscovered by your home’s statutory warranty, youcan refer to Tarion’s Construction PerformanceGuidelines which outline what does and does notrepresent a warrantable defect for almost 300items. The Guidelines are available on our websiteat www.tarion.com.

Statutory Warranty FormsIn order to protect your warranty, you must usespecific Statutory Warranty Forms to submitoutstanding warranty items to Tarion, and youmust submit the Forms within specific timeperiods as follows:

� During the first year of possession of your new home, a 30-Day Form can be submittedduring the first 30 days after you takepossession and a Year-End Form can besubmitted within the last 30 days of the firstyear of possession (with the deadline beingone day prior to the anniversary of yourhome’s date of possession).

� During the second year of possession, aSecond-Year Form can be submitted anytime.

� During years three through seven ofpossession, a Major Structural Defect Form canbe submitted anytime.

Submission periods are subject to the December 24to January 1 (inclusive) Holiday Period. Inaddition, where the submission period for aStatutory Warranty Form ends on a weekend orholiday, it is extended to the end of the nextbusiness day that is not a holiday (i.e., where thetime period to submit a 30-Day Form ends on aSunday, it will be extended to end on the nextMonday where Monday is not a holiday). Anexample of this is provided in the Year-End Formsection on page 17.

These Forms may be submitted to Tarion onlinethrough our new homeowner portal calledMyHome. You may also bring them to our office orsend them via fax, courier or mail. Upon receipt ofa Statutory Warranty Form, Tarion will send youa notice acknowledging the receipt of your Form,and indicating whether or not it is on time. If youdo not receive a confirmation within a reasonabletime (10 days), please contact us. You should beaware that if a Form is sent by regular or registeredmail, submission is effective on the postmark date.Forms sent by regular mail must be received by uson or before 10 days after the submission expirydate for that particular Form. If a Form is sent byregistered mail and the postmark is missing orillegible, the date on the receipt given to you by thePost Office will be used. Submission by regular orregistered mail is not advisable during a generalinterruption of postal service (during a labourdispute, for example).

During the first two years of possession, a copy ofeach Form you submit to Tarion should also besent to your builder so they can repair or otherwiseresolve the item.

Protect Your Statutory Warranty – Submit Your Forms On Time

Submit forms online. You cancomplete the 30-Day, Year-End and Second-Year Forms and submit them through ournew homeowner portal called MyHome.


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The 30-Day FormUse the 30-Day Form (provided with this booklet) tonotify Tarion of outstanding warranty items duringthe first 30 days of possession of your new home. Forexample, if your home’s date of possession isNovember 8, 2009, you can submit your 30-DayForm between November 9, 2009 and December 8,2009. When the deadline date ends on a holiday orweekend, the deadline is extended to the nextbusiness day, which is the case with this example.

We recommend that you fill out and submit a 30-Day Form on or about the 25th day after yourhome’s date of possession. On this Form, you mayinclude items that were listed on your Pre-DeliveryInspection Form that have not yet been addressed, aswell as new items that you have discovered sincetaking possession of your home. Tarion will onlyaccept and act on the first 30-Day Form that isproperly submitted on time, and only one 30-DayForm may be submitted, so make sure it is complete.If we do not receive a 30-Day Form from you ontime, then you will have to wait until the last 30 daysof the first year of possession of your home to notifyus of outstanding warranty items.

The Year-End FormUse the Year-End Form (provided with this booklet)to notify Tarion of outstanding warranty itemsduring the last 30 days of the first year of possessionof your new home (with the submission deadlinebeing one day prior to your home’s date ofpossession). For example, if your home’s date ofpossession is November 8, 2009, you may submit aYear-End Form to us between October 8, 2010 andNovember 7, 2010. Since, in this example, the year-end expiration of November 7, 2010 falls on aSunday, the submission period is extended to thenext business day, which is November 8, 2010.

You may submit only one Year-End Form, so be sureit is complete. Tarion will only accept and act on thefirst Year-End Form that has been properlysubmitted on time. If we do not receive a Year-EndForm from you on time, then you will have to waitand you will only be able to report two yearwarranty items to us at that time.

The Second-Year FormUse the Second-Year Form (provided with thisbooklet) to notify Tarion of outstanding warrantyitems covered by the two year warranty or themajor structural defect warranty that occursduring the second year possession. For example, ifyour home’s date of possession is November 8,2009, you may submit a Second-Year Form to us atany time between November 8, 2010 andNovember 7, 2011. Second-Year Forms may besubmitted to Tarion anytime during this periodand as often as required.

The Major Structural Defect FormAt any time during the third year of possession ofyour new home, but no later than the end of theseventh year of possession, you may make a claimregarding any MSD items directly to Tarion using aMajor Structural Defect Form. For example, if yourhome’s date of possession is November 8, 2009,you may submit a Major Structural Defect Formbeginning on November 8, 2011 through untilNovember 7, 2016.

You can obtain this Form by calling us at 1-877-9TARION (1-877-982-7466). Upon receiptof your Form, Tarion will schedule and conduct aninspection within 30 days.

Protect your warranty bysubmitting a 30-Day Form. If you fail to do so,you will have to wait until the last 30 days of thefirst year of possession of your new home tonotify us of outstanding warranty items.


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Submission of a Statutory Warranty Form triggersa specific process and series of time periods, asdescribed below. Specific exceptions to thisStatutory Warranty Process are describedbeginning on page 20.

Note: All time periods below are subject to theDecember 24 to January 1 (inclusive) Holiday Period.

In addition, where a time period ends on aweekend or holiday, it is extended to the end of thenext business day that is not a holiday (i.e., wherethe time period to submit a 30-Day Form ends ona Sunday, it will be extended to end on the nextMonday where Monday is not a holiday). Anexample of this is provided in the Year-End Formsection on page 17.

The Initial Builder Repair Period Submission of a 30-Day, Year-End and/or Second-Year Form triggers the builder’s initial 120-dayrepair period as follows:

� The builder repair period for the 30-Day Formbegins 31 days following the date ofpossession. If, for example, your home’s date ofpossession is November 8, 2009, the builderrepair period for warranted items listed onyour 30-Day Form would begin on December9, 2009.

� The builder repair period for the Year-EndForm begins on the anniversary of the date ofpossession. So, for example, if your home’sdate of possession is November 8, 2009, thebuilder repair period for warranted items listedon your Year-End Form would begin onNovember 8, 2010.

� The builder repair period for warranted itemslisted on your Second-Year Form begins on theday after Tarion receives the Form.

During this period it is important that you provideyour builder and their tradespeople access to your home.

Your Time Period to RequestTarion’s Involvement If your builder does not complete repairs orotherwise resolve items you believe are warrantedto your satisfaction by the end of the 120-dayperiod, you will have 30 days to contact Tarion andrequest conciliation. When you do, we willschedule a conciliation inspection with youbetween 30 days and 60 days after your request orwe will arrange a desk assessment. We will alsocharge you a $250 (plus GST) fee, which will berefunded if at least one item listed on yourStatutory Warranty Form is determined to bewarranted. After you request conciliation, youshould send Tarion a copy of your purchaseagreement and all its schedules, amendments andattachments, as well as any photographs thatsupport your claim. To encourage resolution ofdisputes, we have introduced a fee of $1,000payable by the builder if at least one item isdetermined to be warranted.

If you do not request a conciliation during thistime period, Tarion will consider all the itemslisted on your Statutory Warranty Form resolvedand the matter closed.

(Note: You may resubmit the item(s) at a later date if the warranty covering the item(s) is still in effect.)

The Builder’s Second Repair PeriodAfter you request conciliation, your builder willhave 30 days from the day that the request wasmade to repair or otherwise resolve theoutstanding warranted items described on theStatutory Warranty Form.

The Statutory Warranty Process –After Form Submission

Provide access to your builderWhen necessary work is required, be sure to give your builder and their tradespeople access to your homeduring normal business hours, at a time mutually agreed upon in advance. Your builder will arrange thiswith you at least 24 hours in advance. Failure to do so will jeopardize your statutory warranty rights.

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Tarion Conciliates the Matter(Adjudicates the Dispute)

If the repairs are not completed by the end of the30 days described above, Tarion will conduct thescheduled conciliation inspection with you andyour builder present, and will send you a report ofour findings within 30 days. The report willoutline which items your builder must resolveunder the terms of the statutory warranty and listthose that are not covered. There may be itemswhich require further investigation, and if so, youwill be notified. Your builder will, in most cases,then be given 30 days after the date of the report toresolve any warranted items. The time period givento your builder may be extended beyond 30 days incertain situations, including where the repair willbe affected by the weather, or where the materialsrequired for the repair are unique and additionaltime is reasonably required to obtain them. If thereis at least one warranted item, your $250 fee (plus GST)will be refunded to you.

Final ResolutionTarion will contact you 30 days after the date ofthe report to confirm that all the warranted itemslisted in the report have been repaired or otherwiseresolved. If any of the items remain outstanding atthat time, Tarion will work with you directly toresolve them.

The Right to Appeal a Tarion DecisionIf you disagree with a claims decision made byTarion and wish to appeal it, you should request inwriting a Decision Letter from us. In your request,list the items you wish to appeal. You have a rightto appeal claims decisions made by Tarion to theOntario Licence Appeal Tribunal, an independenttribunal created by the Ontario government toprovide an impartial appeals process forconsumers. In most cases, appeals are settledbetween homeowners and their builders prior toany hearing taking place before the Tribunal. Formore information about your statutory appealright, please visit our website at www.tarion.com.For more information about the Tribunal, you mayvisit www.lat.gov.on.ca.

New Home BuyerOmbudsperson OfficeThe New Home Buyer Ombudsperson Office is asecond avenue of assistance for homeowners whobelieve Tarion has treated them unfairly orimproperly or in a manner that is outside the“intent and spirit” of the Ontario New HomeWarranties Plan Act.

Complaints received by the Ombudsperson will beinvestigated to determine whether they have beenhandled in accordance with Tarion’s practices andprocedures. If not, the Office will seek resolutionin a timely and effective manner.

The Office is not meant to replace establishedchannels of assistance, but may be used if anindividual needs assistance identifying how toresolve a complaint, would prefer to discuss aproblem with an impartial third party, or hasalready gone through established channels without satisfaction.

The Ombudsperson operates independently of allother departments at Tarion.


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There are circumstances that may affect yourbuilder’s ability to repair or otherwise resolvewarranted items according to the process andtimelines described in the previous section forstatutory warranty claims. While these areinfrequent, it is important that you understandwhat they are.

EmergenciesCertain severe conditions constitute an emergencysituation. An emergency is any warrantabledeficiency within the control of your builder that,if not attended to immediately, would likely result in imminent and substantial damage to yourhome, or would likely represent an imminent and substantial risk to the health and safety ofits occupants. Examples of emergency situations include:

1) Total loss of heat between September 15 andMay 15; 2) Gas leak;* 3) Total loss of electricity;*4) Total loss of water supply;* 5) Total sewagestoppage;* 6) Plumbing leakage that requirescomplete water shut-off; 7) Major collapse of anypart of the home’s exterior or interior structure;8) Major water penetration on the interior walls orceiling; 9) A large pool of standing water inside thehome; or 10) Any situation where, in the opinionof Tarion, the home is uninhabitable for health orsafety reasons.

During this period, it is important that you provide your builder and their tradespeople accessto your home.

What to do in an Emergency Situation

There are a few things you must do to protect yourhome’s statutory warranty. Doing so will helpensure that you have a successful new homeexperience and failing to do so could put yourhome’s statutory warranty in jeopardy. To protectyour home’s statutory warranty:

1) You should immediately call the emergencycontact telephone number provided by yourbuilder when you received this booklet.

2) If you are unable to reach your builder or ifyour builder does not assess and correct thesituation within 24 hours, you should contactus at 1-877-9TARION (1-877-982-7466) forfurther assistance.

3) If you cannot reach your builder or Tarion,and have no other option but to have the workcompleted, you or your contractors shouldcorrect the situation. However, only the emergency condition should be correctedand the problem should be documented withpictures taken before and after the repair,if possible.

4) You should not repair any damage to builder-installed materials. If your builder isresponsible for the emergency item and youhave notified them, they should resolve thedamage to builder-installed materials causedby the emergency condition within 30 days. Ifyour builder fails to do so, we will work withyou directly to settle the matter.

5) To recover costs for the circumstances set outin item 3 above, you will need to submit anEmergency Form to us and your builder as soonas possible after completing the repair. ThisForm is available by contacting us. Apart fromtaking steps to protect your property, youshould not undertake any repair work withoutgiving your builder 24 hours to assess theproblem and take corrective measures. You willnot automatically receive reimbursement foremergency repairs, and, in addition,completing the work without an assessment byyour builder may jeopardize your statutorywarranty coverage.

Exceptions to the Statutory Warranty Process

* Emergency situations due to the failure of a municipality or utility to provide the service are notcovered under warranty because they are not within the builder’s control.

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Seasonal and Special SeasonalWarranty ItemsSpecial Seasonal Warranty Items are items on theexterior of or outside your home that can only berepaired effectively in favourable weatherconditions. The period from May 1 to November15 is generally considered to have suitable weatherconditions for making such repairs.

Seasonal Warranty Items

Seasonal Warranty Items include:

� Exterior painting;

� Exterior cement/concrete work (including parging application/repair);

� Exterior mortar work (including brickinstallation/repair);

� Exterior stucco work/repairs (including repairsto exterior insulation finishing systems);

� Exterior caulking; and

� In-ground support for decks.

These items should be listed on your 30-Day, Year-End or Second-Year Form, as appropriate (see page17). They will be dealt with according to thetimelines set out in the Statutory Warranty Process(see pages 18 and 19), subject to suitable weatherconditions as described above. If, however, yourbuilder cannot complete or repair a SeasonalWarranty Item within the required timelines dueto unsuitable weather conditions, they must do soas soon as possible after suitable weatherconditions return, and in any event between thefollowing May 1 and September 1.

If for any reason your builder does not complete or repair a Seasonal Warranty Item to yoursatisfaction within this time period, you have 30 days (until October 1) to contact us and requestour assistance. If you do not do so, the SeasonalWarranty Items listed on your Statutory WarrantyForm will be considered resolved and the matterwill be closed.

(Note: You may resubmit the item at a later date ifthe warranty covering the item is still in effect.)

Special Seasonal Warranty Items

Special Seasonal Warranty Items include thecompletion of your new home’s final grading,landscaping (laying sod, etc.) and the installationof driveways, patios and walkways, and should belisted on your 30-Day or Year-End Form asappropriate. Your builder has 270 days of “seasonalweather” from your home’s date of possession tocomplete any of these items, unless a longer periodwithin the time limits permitted under applicablemunicipal agreements was negotiated between youand your builder. For example, if your home’s dateof possession is November 8, 2009, your builderhas until July 3, 2011 to complete the necessary work.

If for any reason your builder does not completethe required work to your satisfaction within this270-day period, you have 30 days (which in theexample below would be from July 3, 2011 to August 1, 2011) to contact Tarion and request our assistance.

THE SEASONABLE WEATHER DAYS IN THIS EXAMPLE ARE CALCULATEDAS FOLLOWS:

Number of SeasonalWeather Days

From November 8, 2009 to November 15, 2009 8

From May 1, 2010 to November 15, 2010 199

From May 1, 2011 to July 2, 2011 63

TOTAL 270


22

If the item is determined to be warrantable, we willwork with you directly to settle the matter. If youdo not contact us within this 30-day period, theSpecial Seasonal Warranty Items listed on your 30-Day or Year-End Form will be consideredresolved and the matter closed.

Air Conditioning Defects in work or materials that result inproblems with your builder-supplied airconditioner are covered under the one yearwarranty. They should be reported on your 30-Dayor Year-End Form and they will be serviced by your

builder according to the timelines outlined in theStatutory Warranty Process section, with oneexception. A complete lack of cooling between May 15 and September 15 inclusive during the firstyear of possession of your home may be reportedto Tarion separately and will be resolved morequickly. Report the problem to your builderimmediately so they can assess the situation andresolve the matter. If you also wish to report theproblem to Tarion, we will assist you indetermining whether it is an exceptional situationand if so, we will ask you to complete and submitan Air Conditioning Form. Your builder will begiven 30 days from the date that we receive yourForm to correct the complete lack of cooling, if itis warranted. If they fail to do so, you will have 30days to contact us and request conciliation. Tarionwill schedule a conciliation inspection and sendyou a report regarding your claim within 10 daysof your request.

Extraordinary SituationsAnother exception to the time periods set out inthe Statutory Warranty Process is in the case of anextraordinary situation. There are two types ofextraordinary situations, either of which couldcause your builder to seek an extension of the time periods:

1) An industry or regional event that affects asegment of the construction industry orregion of the province (such as labour, tradeor materials shortages, strikes or other labourdisputes, and severe weather or other acts ofnature); or

2) Special circumstances affecting a particularbuilder or home, such as the special order of apart that will take more time to arrive thanthe Statutory Warranty Process time periods allow.

If your builder applies to Tarion for this type of extension on any of your outstanding items,they will notify you in writing. If the extension is granted, we will set a new time period and confirm it with you.

By conducting regular and proper maintenance onyour home, you will be helping to ensure that yourstatutory warranty rights are protected. Talk toyour builder about what you should be doing bothinside and outside during the various seasons ofthe year to benefit from their experience withhome maintenance. They might even provide youwith an instruction guide to help you along. Wehave included some useful tips to help you getstarted, such as the home maintenance checklist onpages 25 and 26 of this booklet. As you’ll learn,there are many items involved in an ongoingmaintenance program, including one of the mostimportant: moisture control.

Control the Moisture in Your New Home – It’s Important!Today’s building products have eliminated much ofthe time-consuming and often tedious workinvolved in home maintenance. However, no home is maintenance-free. Special care is especially required to maintain modern, energy-efficient homes which are tightly constructed toseal out the cold weather in the winter and keep incool air in the summer.

Guidelines for properly ventilating your homeshould be followed in order to prevent excessmoisture from building up inside the home, whichcan result in damage that would not be covered bythe statutory warranty. Bathroom fans, kitchenrange hoods and packaged ventilators such as heat-recovery ventilators are specifically installed inyour home to help you control moisture andcontaminants. As well, regular use of your homeventilation system will remove excess airbornemoisture caused by bathing, showering, doinglaundry and cooking.

What causes moisture damage?Your home can be damaged when weather-relatedwater is allowed to enter and remain in thestructure. Water from leaking pipes or fixtures thatis not immediately cleaned up, and indoorhumidity levels that are not properly controlled,can have serious consequences.

Sometimes this damage is easily seen; at othertimes the damage is hidden inside wall or roofspace. Regardless of where it occurs, moisturedamage can lead to serious problems, such as rot and structural failure that will affect theperformance of structural and interior wood finishes.

Maintaining Your New Home

23



How can I control moisture?

Tarion recommends that new homeowners alwaysuse their home ventilation system to controlmoisture. Here are some extra tips you can followto help prevent moisture damage to your home.

Outside the home

1) Keep flowerbeds or landscaping at least sixinches or 150 mm away from the top of thefoundation and ensure the direction of thegrading or the slope of the ground is downhill away from the house. Placing soilnear or above the top of the foundationcreates a problem because it allows moistureto come into direct contact with the structureof the building.

2) Clear eavestroughs of debris regularly, andextend downspouts and sump pump dischargedrains so that water is directed away from thebuilding. Water flow can erode the groundnear the foundation and create depressionswhere water collects. Standing water near thefoundation can find its way into the basement.

3) Inspect the caulking around windows anddoors and on the roof to ensure it hasn’tbecome cracked or separated. If there arecracks, recaulk as needed.

4) Have your roof inspected regularly to ensureshingles, flashing and chimney caps are inplace and sealed properly.

Inside the home

1) Purchase a hygrometer to monitor the relative humidity in your home.

2) When using a humidifier or dehumidifier, be sure to follow the manufacturer’s instructions.In the winter, keep the relative humidity in your home in the range of 30% to 45%. Lower humidity levels may affect your health and cause wood products to shrink. Excess humidity can cause condensation on windows and windowsills and cause damages to the surrounding wall. In the summer, dehumidify the basement to avoid condensation build-up on the cool foundation walls. Relative humidity levels should not exceed 60%.

3) Work with your builder to ensure that leakypipes and fixtures are repaired immediately.Clean and completely dry any areas that aredampened or wet within 48 hours.

4) Store organic materials such as newspapers,cardboard boxes and clothes away from cool, damp areas to prevent moisture build-up. Keep storage areas tidy so that air circulates freely.

5) If you are adding a hot tub to your home, orhave a large collection of plants or a largeaquarium, consider the amount ofmoisture they will add to indoor air andventilate accordingly.

6) Never vent your clothes dryer inside your home.

7) Investigate and identify any musty smells andodours. They are often an indicator that thereis a hidden moisture problem.

We have included a Home Maintenance Checklistin this booklet (on the following pages) to guideyou through your annual maintenance routine. Thechecklist provides a monthly breakdown of itemsfor inspection, and is intended to help you set up aregular schedule of checkups and cleanups.

24


25

SPRING

March

� Clean or replace furnace filter

� Check/clean heat recovery ventilator [HRV]; washor replace filter

� Clean the mechanisms of the humidifiers

� Check attic for signs of moisture & evendistribution of insulation

� If possible, carefully remove snow/ice from roofoverhangs/vents

� Check & reset ground fault circuit interrupter[GFCI] (e.g. exterior outlets, bathrooms or at mainelectrical panel)

� Check sump pump, float & discharge line & testoverall operation

� Test smoke alarms & carbon monoxide detectors

April� Check eavestroughs & downspouts & clean if needed

� Clean window wells, drainage swales or catch basinsof leaves, snow & ice build-up



� Inspect basement or crawl space for signs of seepage/leakage & check for dampness or musty smells

� Check for missing, loose or cracked shingles

� Remove winter cover from air conditioning unit;inspect air conditioning unit; vacuum or brush theoutdoor coil & wash; service as needed

� Check driveways & walks for frost damage &reinstate if required

� Check water heater for leaks, etc.

� Plan landscaping to avoid soil settlement & waterponding. Keep soil at least 200mm (8in.) below thetop of the foundation wall & ensure that thedirection of the grading will allow water to flowaway from the house


May� Open outside hose connection & check for leaks

� Clean & check windows, screens & hardware

� Check air intakes & exhaust are clear of debris,nests, etc.

� Check exterior finishes [siding, trim] &eavestroughs to ensure they are secure

� Check caulking for soundness, cracking,detachment & signs of water or air penetration

[remove & replace with appropriate type ofcaulking if necessary]

� Lubricate rubber or plastic weatherstrippingaround doors & operable windows [replaceweatherstripping if damaged]



� Check septic tank system fluid/solid levels & pumpout if needed; check for erosion/water poolingaround septic field

SUMMER

June� Check roof flashing, valleys & vents, & check for

missing/damaged shingles

� Check auxiliary buildings such as sheds forsecureness to base anchors; loose or missingcomponents; damage caused from rodents, etc.

� Check sump pump, float and discharge line & testoverall operation



� Clean range hood filter

� Check exterior wood surfaces for deterioration &refinish the wood surfaces including windowframes & doors

July� Air out damp basements on dry, sunny days

� Clean air conditioning filter, vacuum or brush theoutdoor coil & wash

� Clean & test all exhaust fans; lubricate if necessary


August� Air out damp basements on dry, sunny days

� Clean air conditioning filter, vacuum or brush theoutdoor coil & wash

� Inspect driveways & walks

� Inspect doors & locks

� Check & reset ground fault circuit interrupter [GFCI] (e.g.exterior outlets,bathrooms or at main electrical panel)


Home Maintenance Checklist (All items may not apply to your home)


26

Home Maintenance Checklist (continued)

FALL

September� Check exterior finishes [siding, trim] & eavestroughs to

ensure they are secure; check exterior brick mortar joint& voids [repoint if necessary]

� Check movement of garage doors & lubricatemoving parts as needed

� Check caulking for soundness, cracking,detachment & signs of water or air penetration[remove & replace with appropriate type ofcaulking if necessary]

� Check fireplace & chimney dampers; service orclean if needed

� Have furnace/heating system serviced including heatrecovery ventilator & humidifier

� Check sump pump, float & discharge line & testoverall operation

� Check clothes dryer vent & remove lint & obstructions


October� Check eavestroughs & downspouts & remove leaves

& other debris

� Shut off exterior water supply & drain water lines

� Install winter cover for air conditioning unit

� Check roofing & flashing for signs of wear or damage

� Lubricate rubber or plastic weatherstrippingaround doors & operable windows [replaceweatherstripping if damaged]

� Check septic tank system fluid/solid levels & pumpout if needed; check for erosion/water poolingaround septic field

� Check caulking for soundness, cracking,detachment & signs of water or air penetration[remove & replace with appropriate type ofcaulking if necessary]

� Winterize landscaping



November

� Check attic for signs of moisture & evendistribution of insulation

� Inspect floor drains to ensure traps are filled withmineral oil



� Clean the mechanisms of the humidifiers

� Check for condensation & humidity

� Clean & test all exhaust fans; lubricate if necessary


WINTER

December� Check air ducts, remove covers & vacuum dust

from vents






January� Clean or replace furnace filter


� Check & ensure that air intakes, exhausts & metersare clear of snow



February� Clean or replace furnace filter


� Check & ensure that air intakes, exhausts & metersare clear of snow


� Check & reset ground fault circuit interrupter [GFCI] (e.g. exterior outlets, bathrooms or at main electrical panel)


27


Certificate of Completion and Possession (CCP)The Certificate of Completion and Possession is acertificate which specifies the possession date ofyour home and which is used to fix the startingdate of the warranties which apply to your home.The CCP should be given to you by your builderand should be filled out at the PDI.

Closing DateClosing Date means the date the transaction ofpurchase and sale of the home is completed andtitle to the home passes to the home buyer.

ConciliationA conciliation is a process in which Tarion assesseswhether a disputed item is warranted (i.e., coveredby statutory warranty) and/or whether Tarionsupports the way a repair was done. Wherepossible, Tarion will base its conciliation decisionson the Construction Performance Guidelines whichare available on our website at www.tarion.com. Aconciliation may include an inspection at thehome (if items that require repair are involved) ora desk assessment (if items can be assessed basedon a paper record, e.g., Delayed Closing/Occupancy Compensation claim) and may alsoinclude a review of the purchase agreement, thecompleted PDI Form and other relevantdocumentation. A Warranty Assessment Report isissued by Tarion following conciliation. Thebuilder is expected to fully comply with anydirection that has been provided by Tarion in theWarranty Assessment Report.

Condominium Common ElementsCommon elements are areas or property in acondominium where ownership is shared amongall unit owners. The nature of the commonelements will vary depending on the type ofcondominium project, such as townhouse, high-rise or fully detached. Common elements includeitems that are outside the boundaries of your unitand may include, for example, the heating systemsor the windows of your unit. To determine the

boundaries between your unit and the commonelements, you should refer to “Schedule C” of theDeclaration of your condominium. TheDeclaration should be included with yourDisclosure Statement (delivered to you when youentered into your purchase agreement).

For most condominiums, warranty coverage alsoincludes the common elements. (There is nowarranty coverage for the common elements of aCommon Elements Condominium, or for thecommon elements of Vacant LandCondominiums.) Coverage for common elementsas well as some spaces that may be for yourexclusive use (known as “exclusive use commonelements”) begins on the day the condominiumcorporation is registered. See “Schedule F” of theDeclaration of your condominium for details ofexclusive use common elements.

Note: This booklet does not apply to the commonelements of a condominium.

Contract HomeA Contract Home is a freehold home built on ahomeowner’s land by a builder who agrees toperform all the work and supply all the materialsnecessary to construct a completed home.

Date of PossessionThe Date of Possession is the date on which yourbuilder transfers the right of Occupancy to you, asspecified on the Certificate of Completion andPossession provided to you by your builder. It isalso the date your home’s statutory warrantiesbegin. For freehold homes, the Date of Possessioncan be verified by checking it on your TransferDeed of Land or your Statement of Adjustments.For condominium units, the Date of Possessioncan be verified by checking it on your InterimOccupancy Agreement.

Glossary of Terms


28

December 24 to January 1 (inclusive)Holiday PeriodIn recognition of difficulties which builders mayface in scheduling appointments with homeownersand/or performing work in the holiday periodbetween December 24 and January 1 (inclusive)every year, administrative periods fixed in theStatutory Warranty Process will be extended if anyportion of the time period occurs during thisholiday period. Time periods which would span, orwould start or end during, this holiday period willbe extended by nine days and all relatedsubsequent time periods will be adjusted so thatthey remain consecutive. For example, a timeperiod for submitting a form which wouldotherwise end on December 28 will be extended to January 6; and a repair time period which starts December 15 and would otherwise end on January 13 will be extended to January 22.

Enrolment Number The Enrolment Number is the number Tarion usesto identify your home in our computer systems.It can be found on your Certificate of Completionand Possession.

HomeIn this booklet, a home means either your newfreehold home or your new condominium unit.There are also several types of dwellings that arenot covered by the warranties under the Act. Theseinclude a dwelling that:

� Is not built according to the requirements ofPart 9 of the Building Code which mayinclude, for example, a seasonal dwelling notcapable of year-round Occupancy;

� Is built on existing footings or foundations;

� Is built in converted buildings;

� Has been lived in or rented by the builderbefore they are sold; and

� Is built by the owners.

The OOnnttaarriioo NNeeww HHoommee WWaarrrraannttiieess PPllaannAAcctt aanndd RReegguullaattiioonnss (“the Act”) This Government of Ontario legislation requiresbuilders to offer a warranty to each purchaser of anew freehold home or condominium unit inOntario, defines what is covered under thiswarranty protection, and gives Tarion WarrantyCorporation the power to administer all aspects ofthe rules and regulations contained in the Act.

Occupancy Date Occupancy Date means the date when a homebuyer is given legal possession of the home.

Purchase Agreement Your written agreement with a builder providingfor the purchase of your new home including, forthe purpose of this booklet, a constructioncontract for the construction of your new home.

Glossary of Terms (continued)

29


Statutory Warranty Under the Act, new home buyers benefit fromvarious warranties coverages including: depositprotection, protection against financial loss forcontract homes; undue Delayed Closings orOccupancies, unauthorized substitutions, OntarioBuilding Code violations, defects in workmanshipand materials, water penetration and majorstructural defects.

Statutory Warranty Form(s) Specific Tarion Forms that must be used byhomeowners to inform Tarion about potentialoutstanding warranty items. These include the 30-Day Form, Year-End Form, Second-Year Formand Major Structural Defect Form. Each must besubmitted to Tarion according to specific timeframes based on the Date of Possession asdescribed on page 16.

Vendor/Builder Number The Vendor/Builder Number is the number Tarionuses to identify your vendor or builder in ourcomputer systems. This number can be found onyour Certificate of Completion and Possession.

Warranted/Warrantable/Warranty Item A warranted/warrantable/warranty item is a defectin workmanship or materials which is contrary toone of the statutory warranties. For informationabout statutory warranty coverage, please visit ourwebsite at www.tarion.com and consult theConstruction Performance Guidelines whichdocument many of the most common warrantyitems homeowners submit to Tarion and indicatewhich are covered under the statutory warranty.

Privacy PolicyTarion may collect personal information from youif you request our assistance regarding a disputewith your builder, or make a warranty claim underthe Act. For example, you may provide Tarion withpersonal information when you complete aStatutory Warranty Form, when you call ourCustomer Service Centre, when you send uscorrespondence, or during a conciliationinspection at your home.

By providing Tarion with personal information,you are consenting to Tarion using and disclosingit for the primary purposes of assessing whetheryou have a valid warranty claim or complaint,

providing you with information regarding yourrights and responsibilities, and investigating andconciliating your dispute with your builder. Tarionwill not use or disclose your personal informationfor other purposes, except with your consent or asrequired or permitted by law.

Some of Tarion’s services can only be offered ifpersonal information is provided to us.Accordingly, if you elect to not provide necessarypersonal information to Tarion, certain servicesmay not be available to you.

For more information about Tarion’s PrivacyPolicy, please visit our website at www.tarion.com.


30

Notes

31

Notes



As is the case with any important warranty,there are critical pieces of information (outlinedbelow) which you should be aware of. These and other useful points regarding your home’sstatutory warranty are covered in greater detail in this booklet.

1) Deposits Made to Your Builderare Covered

The deposit you make on your new home isprotected by Tarion, up to a maximum of$40,000 for freehold homes and $20,000 forcondominium units. Condominium depositsin excess of $20,000 are protected separately byOntario’s Condominium Act.

2) Delays in Closing or Occupancy are Covered

Every new home builder in Ontario mustprovide Delayed Closing or Occupancyprotection to purchasers. Delayed Closingprotection applies to freehold homes(excluding contract homes) and DelayedOccupancy protection applies to condominiumunits (see pages 7–11 for more details).

3) You Should Prepare for Your Pre-Delivery Inspection (PDI)

When your home is ready for Occupancy, yourbuilder is required to provide a PDI (see page4 for more details) so you have an opportunityto view the home in its completed state beforeyou move in. You should prepare well as this marks a key starting-off point in the newhome warranty process.

4) Statutory Warranty CoverageContinues for Seven Years

There are three statutory warranties that applyto your completed home: a one year warranty,a two year warranty and a seven year warranty.You can find detailed descriptions about thesewarranties beginning on page 12. With theexception of deposit coverage, all of yourstatutory warranties take effect on your home’sdate of possession and remain in effect even ifthe home is sold. Your builder may choose tooffer additional coverage as well.


5) Your Home is Covered for up to$300,000

You are entitled to statutory warranty coverageup to a maximum of $300,000 for most types ofclaims covered by the one, two and seven yearwarranties (some lesser limits apply to specificitems, such as septic systems).

6) Don’t Miss the Deadline for SubmittingYour 30-Day and Year-End Forms

You must use Statutory Warranty Formssupplied by Tarion to inform us of outstandingstatutory warranty items in your home. You have30 days, including the day you took possessionof your new home, to submit your 30-Day Formto your builder and Tarion. For example, if youtook possession of your new home onNovember 9, 2009, submit your 30-Day Form onor before December 8, 2009. It is youropportunity to inform Tarion of items listed onyour PDI Form and any new items that have notbeen addressed by your builder.

The next opportunity you will have to notify usof outstanding statutory warranty items is onyour Year-End Form. You must submit this Formduring the last 30 days of the first year ofpossession and before the first anniversary ofthe day you took possession of your new home.For example, if you took possession of yourhome on November 11, 2009, submit your Year-End Form to your builder and Tarion betweenOctober 11, 2010 and November 10, 2010.Timelines for submitting Tarion Forms must befollowed in order to protect your warranty rights(see pages 16 –17 for more details). Copies ofthe 30-Day Form, Year-End Form and Second-Year Form can be found at the back of thisbooklet or on our website at www.tarion.com.

7) Be Sure to Maintain Your New Home

Regular and proper maintenance of your homeis important. Please see page 23 and themaintenance checklist provided by Tarion. Yourbuilder is obliged to explain the use andmaintenance of major systems in the home. Youwill see that improper maintenance canadversely affect coverage of certain items.

8) Work with Your Builder to Resolve Deficiencies

By law, your builder must provide you with statutory warranties described in thisHomeowner Information Package. Tarion steps into enforce these obligations if the warranties arenot honoured. It is important that you maintaincommunication with your builder to assist inresolving deficiencies in your new home.

EIGHT TIPS ABOUT YOUR NEW HOME WARRANTY









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