When you buy a new home from a builder, the builder provides possession of the home with warranty coverage guaranteed by Tarion.

Section 13(1) of the Ontario New Home Warranties Plan Act provides warranties that every builder is   required to give to the new home buyer.

What are these warranties?

These warranties are as follows:

(a) that the home,

(i) is constructed in a workmanlike manner and is free from defects in material,

(ii) is fit for habitation, and

(iii) is constructed in accordance with the Ontario Building Code;

(b) that the home is free of major structural defects as defined by the regulations; and

(c) such other warranties as are prescribed by the regulations.

When and How to Enforce the Warranties?

These warranties are usually enforced by Tarion after the completion and if there are some deficiencies found pursuant to completion. The new home buyer has to report the deficiencies in writing to the Tarion on the prescribed forms within the prescribed time periods.

The time periods are as follows:

1. Within one year from the date specified in the Certificate of Completion and Possession for any breach of the Building Code and its fitness for habitation.

2. Within two years from the date specified in the Certificate of Completion and Possession for any deficiencies with regard to plumbing, electrical an any violations of the Building Code affecting the health and safety of the occupant like insulation, air and vapour barriers, ventilation and heating.

3. Within seven years from the date specified in the Certificate of Completion and Possession with regard to major structural defects.

 

Call us @ 905-290-7205 for more information.

February 9 2016.

When you are buying a new home or a new condominium unit from a builder, you are given an opportunity to view your completed home prior to possession. The builder’s representatives will walk you through the newly built property and demonstrates the use of the plumbing, electrical, ventilation and other home systems. It is a thorough inspection of the property.

PDI allows you to note any item that is damaged, incomplete or not functioning properly on the PDI form. These items are fixed by the builder. Any item not fixed prior to completion is listed on a Tarion Warranty Form -30-Day or Year-End Form. Once PDI is complete, you will sign some and the Certificate of Completion and Possession.

So, do not miss your PDI.

 

Call us @ 905-290-7205 for more information.

February 4 2016.

When you are purchasing a new condo from the builder in Ontario, you have to follow the two- stage closing procedure.

What is two-stage closing? The two –stage closing means there are two closing dates:

1. The first stage is an interim closing or occupancy closing- the purchaser is required to take possession of the unit purchased on the interim closing date. The pre-delivery inspection is completed at this stage and the purchaser sigs a certificate of completion and possession under the Ontario New Home Warranties Plan Act. Keys are released to the purchaser by the vendor builder on receipt of the following:
   1. Closing documents including interim occupancy agreement;
   2. Post-dated cheques for the monthly occupancy payments;
   3. A portion of the down payment as agreed upon in the Agreement of Purchase and Sale.
2. The second stage is the final closing takes place after the condominium’s declaration and description have been registered at the concerned land titles office. The title is transferred by the vendor builder on receipt of the following:
   1. All closing documents;
   2. The balance of the purchase price and other adjustments in accordance with the statement of adjustments.

The interim closing agreement is terminated once the final closing is completed.

 

Call us @ 905-290-7205 for more information.

February 3 2016.