Tarion: Warranty Exclusions and Advice

Toronto Real Estate News

In the previous post, we discussed the Three Tarion Warranties for New Home Owners. Let me now give you a few tips on maintaining your home and your warranty in good standing. Neglecting your home may lead to revocation of warranty, whereas good maintenance may significantly add to the likelihood of compensation should you indeed require a major repair. For these reasons, it’s important that you know how to get the most out of your warranty.

Warranty Exclusions and Owner-Built Houses

Photo by Posh Living
Photo by Posh Living

Your warranty excludes any damages that arose as a result of the owner’s alterations to the property, third-party damages, or normal wear and tear. What’s more, your house may not even qualify for this warranty protection if you had exercised significant control over the building process in the first place.

Just to be clear, contract homes built upon a piece of land that you already own are subject to new home warranty as long as they are delivered to you by a third-party builder. If you assume control of the building process or even partake in some of the core works, your home may become an “owner-built” home. This classification would make it exempt from the warranty provision.

If your house is owner-built, it is assumed that you have good knowledge of your property and therefore do not truly need a warranty. In addition, changes carried out or suggested by you may be hard to trace to any potential issues in the future, which would complicate the resolution of potential disputes. Be sure to consider the extent and form of your involvement carefully before you interfere with the construction process.

You should also make sure that you regularly perform all the necessary maintenance tasks so that your home can remain in good condition. Failure to perform the basic maintenance tasks may disqualify you from the warranty protection — even if you qualified initially. Even if you have tenants, make sure that they take basic care of your house or condo and help them with the upkeep. Visit the place regularly to check its state and secure timely reparations of any flaws.

Forms and Deadlines

Not a deadline by phil h
Not a deadline by phil h

There are numerous forms to be submitted throughout the lifetime of the warranty and a few deadlines to be observed as well. The most important form is the 30-Day form that every owner must submit to Tarion to ensure inclusion in the warranty programme. As its name suggests, this form must reach Tarion within the first 30 days of home ownership (after the purchase agreement becomes effective).

Then, there is a Year-End Form to be submitted before the end of the first year of ownership and a few other documents in the later stages. Make sure that you know the deadlines for claim reports, and always send your reports to Tarion and your builder as early as possible.

For full details about the New Home Warranty, visit the Tarion website and take a look at the section Homeowner Information Package.

Let us know in the comments if you have any questions about Tarion and the New Home Owner protection mechanism.

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