Article contributed by Tarion
Illegal building and selling is a serious problem which hurts consumers. One of the biggest challenges to protecting consumers is making sure that the regulators know about an illegal sale when it happens – not years later when there is an issue with the home.
Tarion, the organization charged with administering Ontario’s new home warranty program, has introduced a change to the deposit protection process which will encourage new home buyers to register their purchase agreement with them shortly after they sign.
Why the change?
While policing and deterrence have a role to play in reducing illegal activity, by encouraging purchasers to register their agreement early, Tarion will be able to detect and quickly stop illegal activity in partnership with the Home Construction Regulatory Authority, reducing the risk for buyers.
What’s changing?
Starting July 1, freehold homebuyers can access an easy-to-use online portal to let Tarion know that they have bought a new home, and requires only basic details about the purchaser, vendor/builder and deposit paid.
To encourage homeowners to register this information early, the deposit coverage rules have been modified:
- purchasers who register within 45 days of signing their agreement will qualify for the maximum available deposit coverage,
- those who register later (or do not register) will qualify for a different, potentially lower, level of deposit coverage under a separate deposit claims process.
Registering with Tarion also allows the organization to provide new purchasers with key information about the protection program when they need it.
You can find out more about these changes and other helpful resources at Tarion.com/NewHomeRegistration.
Tips for your homebuyer clients
- Research the builder. Look into their reputation, past projects, and customer reviews before making a decision and check the Ontario Builder Directory before signing a purchase agreement to confirm the builder is licensed and in good standing.
- Carefully review your purchase agreement. Before signing, consult a real estate or condo lawyer to ensure you fully understand your rights and obligations.
- Register your purchase with Tarion. Within 45 days of signing, register with Tarion online to secure maximum deposit protection.
About Tarion
Tarion is an independent not-for-profit organization established by the provincial government, Tarion provides Ontario’s new home buyers and owners with peace of mind that their purchase is safeguarded through the province’s new home warranty and protection program. When a builder does not meet their warranty commitments, Tarion offers support in resolving the issue and, when necessary, steps in to help resolve warranty claims. Learn more: https://www.tarion.com/