With all the commotion around purchasing a home, it is easy to get lost in the endless amount of paperwork. One piece of document you cannot afford to overlook is your Tarion coverage.
There is so much excitement around a pre-construction development that sometimes it’s easy to get blinded from your shiny new investment. It’s brand new with a fresh coat of paint, never before used appliances, and the latest infrastructure.
How can anything go wrong!
Well the truth of the matter is sometimes things do. Without Tarion Warranty, a few hiccups like retouching the walls or an unexpected leak, can cost you a lot of money that you never expected and might not have after just purchasing.
Created in 1976, Tarion is warranty coverage for homeowners on new condominiums and freeholds. It is a contract between purchasers and builders where the primary purpose is to protect homeowners. This warranty covers homeowners up to 7 years from the time of occupancy.
Tarion states their purpose is to:
-Examine homeowner warranty claims
-Resolve warranty disputes amongst builders and homeowners
-Offer deposit and late closing protection for new home buyers
-Prosecute illegal builders
Tarion assists homeowners with the transition into their new home and serves in, ‘Ontario’s public interest by enhancing fairness and building confidence in the new home buying experience’.
If your Builder has Tarion Warranty, you can be protected from the following:
-Unsuitable construction for habitation
-Water penetration through basement or foundation walls
-Defects in the electrical, plumbing, and other systems
-Major Structural Defects
However, there are a lot of restrictions and limitations within the warranty. Tarion is extremely strict and will not accept any claim received after the deadline. Many homeowners fail to recall guidelines and as a result cannot claim deficiencies found in their homes (even if it’s the builder’s fault).
To ensure you are taking full advantage of Tarion and its coverage, below is some key information you should know.
Before you move in: Pre-Delivery Inspection or PDI
The PDI is generally done 1-2 weeks prior to closing and is a crucial step in the process of purchasing a pre-construction condominium. The walk through is the first time you will see your home in its finished state. You will need to pay special attention and report any items that are damaged, missing, incomplete and not operating in good condition on the PDI form. Small damages like chipped paint to larger problems such as malfunctioning fixtures need to be reported immediately.
It is critical not to skip this step; if you report a deficiency after your PDI, the damages may not be covered and the repairs will be at your own cost. For example, if you report chipped paint after moving in, Tarion can dispute that the process of moving in as a plausible cause.
After you move in: Warranty Claims
In your first year of moving in, you have two opportunities to file a warranty claim: a 30-Day Form can be submitted during the first 30 days of occupancy and a Year-End Form during the last 30 days of your first year’s possession. Both forms should report any unresolved items from your PDI walk through and any new items that have come up. It is important to remember that you cannot submit multiple forms for your 30-day and Year-End form. Only the first form submitted will be accepted, so it is crucial to ensure all the information on the form is noted and correct.
In your second year of possession, Tarion will cover any items listed under the Two-Year or Major Structural Defect warranty and thankfully, you can submit more than one form! However, after your second year of occupancy, Tarion will only cover major structural defects up to the end of your seventh year of possession. Homeowners need to note that every warranty form covers different items. For example, a deficiency you discover in your second year of occupancy may not be covered under the Two-Year warranty but may have been under the 30-Day or Year-End warranty.
Patience is a virtue when dealing with Tarion. After a warranty claim form is submitted it can take up to 120 days for it to be fixed or resolved. If the problem is still not fixed within the 120 days, you have 30 days to contact Tarion directly and request a conciliation inspection. REMEMBER IT IS YOUR RESPONSIBILITY TO FOLLOW UP WITH YOUR CLAIMS. If a conciliation inspection is not requested within the 30 days, the claim will be considered resolved. Dealing with Tarion can be a headache but looking at damaged items is a bigger eyesore. You want your new condominium to be a good investment and the last thing you want to deal with as a homeowner, is to pay out of your own pocket for pre-existing damages.
Always Research the Builder
It is so important to look into the builder’s warranties and reputation of dealing with major problems so you can rest assured that your new purchase will be in good hands. Reliable builders like Tridel always make sure their residents are taken care of and so a Tridel Condo has Tarion Warranty on every suite.
Be proactive and do your research first.
Visit tarion.com to learn more.