By Tarion Warranty Corporation
One of the major benefits of choosing to buy a newly-built home is that it comes with a seven-year warranty from your builder that is backed by Tarion Warranty Corporation. It’s important to understand the rights and responsibilities of your warranty, and these five tips will help:
1. Research your builder
Did you know that every licensed builder in Ontario is searchable in the Ontario Builder Directory
? This comprehensive directory provides a 10-year history for all registered builders, as well as those that are no longer registered to build homes. If your builder is not listed in this directory, it may be because they did not pass the technical test based on the Ontario Building Code regulations or provide the financial securities mandated to build homes in Ontario – and they are building illegally. Before entering into any type of purchase agreement, research your builder on the Ontario Builder Directory.
2. Be prepared for the possibility of delays
When you purchase a new home, the builder will state a closing date in your Agreement of Purchase and Sale. This date may be extended due to various factors, sometimes outside of the builder’s control. For the homeowner, this means you may have to wait longer than expected to move in.
Every builder of a new freehold home in Ontario must provide the delayed closing warranty to buyers at the time the purchase agreement is signed. Through this warranty, your builder is guaranteeing that your home will be completed by a mutually agreed upon closing date, or by a closing date that has been properly extended. Your builder may be required to compensate you if a delay occurs and your closing/occupancy date has not been properly extended.
3. Proper inspection is your responsibility
Your builder will schedule a pre-delivery inspection, or PDI, on or before the day you take possession. Make the most of this opportunity by learning how to operate your home’s systems and properly care for your new home. List anything on the PDI form that may be damaged, incomplete, missing or not working properly. Make sure that the form is complete, because it will serve as an official record of the condition of your home before you moved in. You can print a PDI Checklist
from Tarion.com to help you through your pre-delivery inspection.
4. Submit your warranty forms on time
There are strict deadlines for submitting warranty forms. The best way to stay on top of those deadlines is by registering for MyHome
, an online service for homeowners operated by Tarion. It will remind you of your warranty periods and allows you to submit your forms online.
5. Home maintenance is essential
Attentive maintenance not only ensures that your property remains in good condition and working order, it also preserves your warranty coverage. For example, controlling moisture levels throughout your home is a prerequisite for certain warranty claims. More information and seasonal home maintenance checklists are available online at Tarion.com
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Victoria, Barachois, Saulnierville Station, Dereham Centre, Sainte-Ursule