New home buyers get $300,000 worth of coverage from Tarion
It’s always reassuring to have a safety net. Whether you’re driving a car, buying a home, or swinging from a trapeze, it’s comforting to know that you have a support system in case things don’t work out as planned.
Since 1976, Tarion Warranty Corporation has been the soft landing for new home buyers, and as of July 1, 2006, this landing has gotten even softer. On that day, Tarion increased its warranty coverage from $150,000 to $300,000. “This increase is based on the fact that the average cost of a new home has gone up to $306,000 and our increased warranty coverage will reflect that,” says Janice Wong, senior manager of corporate communications for Tarion.
Tarion is a private company whose main objective is to protect the rights of the new homebuyer and to monitor the quality and reputation of new home builders. At no cost to the buyer, Tarion now provides warranty protection of $300,000 for up to seven years that covers everything from faulty caulking to major structural defects. Tarion is also the provincial regulator of the home-building industry and it licenses builders of freehold and condominium homes, ensuring that builders have sufficient technical experience and financial backing.
“The statutory warranty offered by Tarion only applies to newly constructed homes,” Wong says. “Renovations or homes built on existing foundation are not covered.” An important feature of the warranty is that it covers the home itself and not the owner, so if you’re purchasing a resale home built within the last seven years, be sure to ask the previous owner if the warranty is still valid.
Tarion is there to help if problems arise with your new home purchase, but as Wong stresses, “do your research.”
The Tarion website offers a variety of resources for the new homebuyer. From its comprehensive Homeowner Information Package, which lists the details and coverage of the one-, two-, and seven-year warranty plans, to information on free seminars for new homebuyers, a prepared shopper is a smart shopper.
Its website and Homeowner Information Package also stress the importance of the pre-delivery inspection (PDI) of your new home. Conducted by your builder, this is an opportunity for you to become acquainted with the home, its operation systems, any deficiencies, and maintenance guidelines. The website also allows you to download the necessary forms, such as the Statutory Warranty Form, that must be completed and submitted to Tarion to ensure that your warranty coverage isn’t jeopardized in any way.
For more information on the statutory warranty and Tarion, please visit www.tarion.com.