When purchasing a new home, a “New Home Warranty” is an option that must be offered to the purchaser to help cover malfunctions or damage in the first few years of owning the home. Under the New Home Warranty Act in Ontario, there are legal specifications for what must be covered. Here is a detailed explanation of what the warranty will cover, and what it will not.
About New Home Warranties
In Ontario, the majority of new homes are given new home warranties. The main company that manages these new home warranties is Tarion. This company is dedicated to serving the public interest by “promoting fairness and building confidence in the new home buying experience.” Tarion offers information on one, two, and seven year warranties, as well as ensuring that the laws for new builds are followed, so the consumer is protected. Under the New Home Warranties Act of Ontario, the builder is required to guarantee to the purchaser that the home has been built by officially registered professionals and is free from defects in construction, is suitable for living, and it is built in accordance with the regulations of the Ontario Building Code. Under these regulations, there are certain defects that are covered under a new home warranty,and some that are not.
Read More