January 12, 2021
Tarion’s Home Inspector Report provides you with information and updates about the new home warranty that will help you in the course of your professional duties.  Important Update On New Changes As of February 1, changes are coming to the new home building industry as well as the warranty program for new homes. These changes will impact how new home builders are licensed and regulated and what information they are required to provide to home buyers about their warranty.  The following email provides a summary of some of the key changes that will impact new home building, purchasing and warranty coverage. New Regulator for New Home Builders and VendorsOn February 1, the Home Construction Regulatory Authority (HCRA) will be responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. What this means is that they will now protect home buyers by working to ensure that all new home builders and vendors in Ontario act with honesty and integrity, have the necessary technical skills to build homes, the financial capacity to run a home building operation, and the knowledge and capacity to offer warranty protection on new homes. Under their mandate, the HCRA will also investigate homeowner complaints about their builders’ conduct and enforce professional standards for competence and conduct in the home building industry. You can learn more about the HCRA by visiting their website at www.hcraontario.ca We also encourage you to sign up to receive HCRA updates here. In addition you can connect with the HCRA through the social media channels linked below. Connect with HCRANew Homeowner Information Resources and Requirements For BuildersAs part of Tarion’s efforts to continue to improve the new home warranty and protection program, we have initiated a number of changes which will help improve coverage as well as consumer awareness of the warranty that comes with new homes in the province.

Warranty Information Sheets and New Requirements for InformationTarion will also be implementing changes for all Agreements of Purchase and Sale signed on, or after, February 1, 2021, specifically:

  •  A new requirement for a Warranty Information Sheet to be attached to all purchase agreements to provide clear and helpful warranty information at the time of sale;
  • A new requirement for builders to provide Tarion with purchaser contact info to allow for earlier communication about the importance of the PDI as well as key elements of the new home warranty that would apply during the pre-possession period.

You can find copies of the six different Warranty Information Sheet here

New Warranty Educational ToolsFor new home buyers and homeowners who want to learn more about their warranty coverage, Tarion is replacing its Homeowner Information Package with new resources. 

In addition to the Warranty Information Sheets that will be attached to purchase agreements, homeowners will have access to:

  • Warranty Coverage Brochures for Condos and Freehold/Contract Homes that will provide information about the warranty, the warranty claims process and the roles and responsibilities of homeowners, builders, and Tarion.
  • The Homeowner Learning Hub which offers online modules covering relevant information for various parts of the home buying and ownership journey that homeowners can progress through at their own pace.

New Addenda For Purchase AgreementsDue to the launch of the HCRA, Tarion has updated the Addendum to ensure consistency with the new regulator. A link to the revised forms and the relevant amended regulations can be found here

New Vendor and Builder AgreementsAs part of the changes to operational policies, Tarion is currently consulting on new standard agreements for Vendors and Builders. The terms of previously signed Vendor Agreements and Builder Agreements will continue to be in force for homes approved by Tarion prior to February 1, 2021. After February 1, 2021, when submitting a new application for QFE and/or Enrolment, you must agree to updated versions of the Vendor Agreement and the Builder Agreement, which will apply to the homes proposed in the new application. After the close of the consultation on January 15, Tarion will make the necessary revisions and post the final versions on the agreements prior to February 1. For more information on the current consultation please visit hereNew Warranty LimitsTarion has moved forward with changes to some warranty compensation limits, including:

  • Increasing the compensation limit for claims involving hazardous substances (such as mold and radon);
  • Increasing the compensation limit for defects relating to condominium common elements (such as parking garages, and exterior cladding); and
  • Increasing the compensation limit on septic system issues where homes have a separate septic system.