Warranties and Tarion For New Homes And New Condos
A warranty plan from a builder, known as a Tarion, can protect your deposit on a new build up to certain amounts. At Blackburn Lawyers, we will determine if the warranty was purchased, the provisions of the warranty, and protection of your rights if any issues arise.
Based in Richmond Hill, Ontario, we can help you understand what parts of your investment are covered by the warranty, and what parts are not.
What Is Tarion?
Tarion is the current name for the warranty plan that covers new homes and condominiums purchased from a builder. All builders must be registered in this program and the warranty is mandatory.
The warranty protects deposit money paid, up to certain limits. ($20,000.00 for condominiums and up to $60,000.00 for freehold homes) with a sale price of $600,000.00 or less, over $600,000.00, or 10% of the purchase price up to $100,000.00.
It will ensure you receive compensation for delayed closing costs up to a maximum of $7,500, if the builder extends the closing date and does not provide you with sufficient notice as required by Tarion.
Understanding What Tarion Covers
It warrants materials and labour with respect to minor matters for up to one year from the closing date (occupancy date in the case of condominiums). It covers systems and water penetration for a period of two years and major structural issues for up to seven years.
The cost of the warranty is normally paid by the buyer. The amount charged is based on your purchase price.