Looking to buy a new house? Here is some information about Tarion.
Pursuant to the Ontario New Home Warranties Plan Act, builders and vendors have numbers of obligations to fulfill to legally build and sell homes in Ontario. All builders and vendors must be registered with Tarion Warranty Corporation (“Tarion”) to build and sell homes legally in Ontario. In addition, all new homes must be enrolled prior to commencement of construction.
An owner built home is a home where the landowner owns the lot, and the landowner rather than a contractor: (1) exercises significant control over the construction of a new dwelling, and/or (2) is responsible for contributing one or more essential elements to it. Exercising control over the construction includes entering into contracts directly with subcontractors. Essential elements include footing/foundation, framing, exterior cladding, building envelope, heating, electrical and plumbing distribution systems. Owner built homes are not covered under the statutory warranty, unless the owner sells the home without it being previously occupied.
If an owner builds and then sells the home without occupying they would be required under the Act to register and enroll the home with Tarion. Visit the Tarion New Home Buyers website which offers ideas on how to choose a home, where to find legal and financial advice and additional information on what is covered in the Tarion warranty.