The new head of the company is concerned that many new home
owners are not aware of the exact amount of coverage they are entitled to. In
September, he addressed the Greater Ottawa Home Builders’ Association and
reinstalled the concept that buyers had to be educated.
Tarion was built to protect new buyers and control builders
by making sure that there were no signs of shoddy workmanship. New average
mid-sized homes must come with a warranty. The warranty costs around $1,000 and
is usually passed from the builder to the buyer. The warranty covers the first
seven years of the new house.
The first year of the warranty covers all aspects of
workmanship. The second year covers building code and operating systems. The
remaining years of the warranty focus on all major structural defects. It is
important that all new houses are registered for warranties by the builders.
Any new home that is built and sold with an Agreement of Purchase and Sale
without a warranty would be categorized as an illegal building, certain
acceptations do exist see below. Another way that builders can trick new home
buyers is that they build the house as consultants and register the building
permit in the buyer’s name. This legally makes the buyer responsible for all
problems they face during the initial year and they cannot do anything about
it.
If you buy a home from a registered builder you still need
to understand the terms of warranty that are applicable to your property.
Houses are made with natural material and therefore are subject to change. The
issues related to these changes are mostly resolvable and if they are not, they
can be sent to conciliation.
If you are buying a resale home that was built less than
seven years ago, the house is still under warranty and the previous owner has
no right to withhold the warranty. Buyers are also encouraged to send their
warranty forms within 30 days, for a one or two year warranty term and register
themselves at MyHome section on Tarion’s website.
There are a few types of homes that are not subjected to
builder warranties: condo conversions, vacant land condos, common element
condos, owner-built homes, modular homes, as-built homes, model homes, mobile
homes and shell homes among a few others. You must remember to ask all the
necessary questions to your real estate agents in Ottawa.
The new changes in the warranty program have helped Canadian
buyers and home builders improve standards and make better decisions. For further
information contact visit www.bennettpros.com.
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