In Ontario new home buyers are protected somewhat by the Ontario New Home Warranties Plan Act. The coverage under the Act include Deposit Protection, Defects in work and material, unauthorized substitutions and delayed closings. Most of the Tarion warranties are pretty much the same as the manufactures warranties and obtaining any other coverage from Tarion may tax you beyond your endurance to obtain any satisfaction.
Home buyers in Canada rarely buy a home without a home inspection. If you decide to buy a home without a Home Inspection most Realtors will have you sign a waiver indicating your choice. This is because they know the risks involved and they are professionals. Canada Mortgage and Housing Corporation recommends you hire a Professional Home Inspector to inspect any home you are buying. Tarion never mentions your right to have a Home Inspector accompany you for your Pre Delivery Inspection and actually has made it harder by stating that you may have to notify the builder in writing if you want to have a "designate" accompany you.
Chris DiNovo, the New Democrat MPP for a Toronto riding tried to submit a Private Members bill to have Tarion held accountable to the Provincial Ombudsman, rather than Tarion's own Ombudsman, who works at Tarion's offices and is employed by them. Currently if you are not happy with Tarion's decisions or actions you only the expense route of going to court. Tarion operates independently of government. It is a private corporation financed by builder registration, renewal and home enrolment fees. All those fees are included in the cost of the home so Tarion is paid by the Home Buyer but receives none of the benefits.
As far back as 2008 the flaws and failings of the Tarion Warranty program have been acknowledged by many. Canadians for Properly Built Homes released this News Release in 2008: "Canadians for Properly Built Homes (CPBH) is very pleased with the Ombudsman Ontario's report "Building Clarity": Investigation into how the Ministry of Government and Consumer Services represents its relationship with the Tarion Warranty Corporation to the public:, and supports its recommendations. With Ombudsman's findings, the Government of Ontario and Tarion can no longer continue to deny the very serious issues with Ontario's new home warranty system. It is clear that the current system of home warranty in Ontario has not adequately protected may Ontario purchasers of newly built homes. This have been devastating for many Ontario families."
When buying a new home you are also incurring the cost of the building permit which is issued by your local building department prior to construction starting on your new home. As part of the building permit your home has specified inspections that are required for each stage of building. Many times deficiencies are either overlooked or the inspection is not made which allows the builder to provide a substandard product without proper supervision. Some of the items typically found by home inspectors on new home construction include: missing attic insulation, loose heat registers, drains to weeping tile left open, improper slope on furnace and hot water tank vents, damaged floor trusses, improperly nailed joist hangers, wrong nails used in joist hangers and improperly installed shingles.
Not all builders have problems with their homes or with dealing with new home buyers, but unless you do your homework and take the appropriate steps to protect your investment, you won't know until it is too late. Google can be your friend when you want to find out about your builder but even that is not guaranteed because many builders operate under a different name for each subdivision that they build. Taking a professional Home Inspector with you during your Pre Delivery Inspection makes sense considering your home is typically one of the largest investments you will make. Let someone who specializes in finding the problems work on your behalf. Of all the permits and charges you pay when buying a new home, your Home Inspector and lawyer are the only people that are working just for you.
Home buyers in Canada rarely buy a home without a home inspection. If you decide to buy a home without a Home Inspection most Realtors will have you sign a waiver indicating your choice. This is because they know the risks involved and they are professionals. Canada Mortgage and Housing Corporation recommends you hire a Professional Home Inspector to inspect any home you are buying. Tarion never mentions your right to have a Home Inspector accompany you for your Pre Delivery Inspection and actually has made it harder by stating that you may have to notify the builder in writing if you want to have a "designate" accompany you.
Chris DiNovo, the New Democrat MPP for a Toronto riding tried to submit a Private Members bill to have Tarion held accountable to the Provincial Ombudsman, rather than Tarion's own Ombudsman, who works at Tarion's offices and is employed by them. Currently if you are not happy with Tarion's decisions or actions you only the expense route of going to court. Tarion operates independently of government. It is a private corporation financed by builder registration, renewal and home enrolment fees. All those fees are included in the cost of the home so Tarion is paid by the Home Buyer but receives none of the benefits.
As far back as 2008 the flaws and failings of the Tarion Warranty program have been acknowledged by many. Canadians for Properly Built Homes released this News Release in 2008: "Canadians for Properly Built Homes (CPBH) is very pleased with the Ombudsman Ontario's report "Building Clarity": Investigation into how the Ministry of Government and Consumer Services represents its relationship with the Tarion Warranty Corporation to the public:, and supports its recommendations. With Ombudsman's findings, the Government of Ontario and Tarion can no longer continue to deny the very serious issues with Ontario's new home warranty system. It is clear that the current system of home warranty in Ontario has not adequately protected may Ontario purchasers of newly built homes. This have been devastating for many Ontario families."
When buying a new home you are also incurring the cost of the building permit which is issued by your local building department prior to construction starting on your new home. As part of the building permit your home has specified inspections that are required for each stage of building. Many times deficiencies are either overlooked or the inspection is not made which allows the builder to provide a substandard product without proper supervision. Some of the items typically found by home inspectors on new home construction include: missing attic insulation, loose heat registers, drains to weeping tile left open, improper slope on furnace and hot water tank vents, damaged floor trusses, improperly nailed joist hangers, wrong nails used in joist hangers and improperly installed shingles.
Not all builders have problems with their homes or with dealing with new home buyers, but unless you do your homework and take the appropriate steps to protect your investment, you won't know until it is too late. Google can be your friend when you want to find out about your builder but even that is not guaranteed because many builders operate under a different name for each subdivision that they build. Taking a professional Home Inspector with you during your Pre Delivery Inspection makes sense considering your home is typically one of the largest investments you will make. Let someone who specializes in finding the problems work on your behalf. Of all the permits and charges you pay when buying a new home, your Home Inspector and lawyer are the only people that are working just for you.
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