Tarion provides new home buyers with protection against unauthorized substitution, defects in workmanship, delayed closings and deposit protection. They have a maximum protection of 300,000 dollars for homes built after 2006. Many of the defect warranties touted by Tarion are not even equivalent to the premium window and doors manufactures warranties, such as some companies that offer lifetime warranty on window seals.
Although every Realtor in Canada recommends that you have a home inspection when buying a home, Tarion fails to mention it at all in their Pre-Delivery Inspection. Canada Mortgage and Housing Corporation states, “One of the best ways to see if a home is in good condition, livable and safe is to hire a professional home inspector. A properly trained home inspector will review your house as a system, looking at how one component of the house might affect how another component works or how long it will last.” This is a strange way for a Corporation to treat the Home Buyers, whose fees are included in the cost of the home.
Tarion currently operates independently of the government and any regulatory agencies. Although all the funding for Tarion ultimately is paid for by the Home Buyer, there is no protection for the Home Buyer other than the Tarion Ombudsman, which works at Tarion and is paid by Tarion. There have been Private Members bills submitted to the Ontario Government to have Tarion held accountable to the Ontario Ombudsman but there has been no progress against the powerful home builders lobby at this time.
In 2008 the group, Canadians for Properly Built Homes released a News Release, TORONTO, ONTARIO – June 10, 2008 Canadians for Properly Built Homes (CPBH) is very pleased with the Ombudsman Ontario’s report “Building Clarity”: Investigation into how the Ministry of Government and Consumer Services represents its relationship with the Tarion Warranty Corporation to the public:, and supports its recommendations. With Ombudsman’s findings, the Government of Ontario and Tarion can no longer continue to deny the very serious issues with Ontario’s new home warranty system. It is clear that the current system of home warranty in Ontario has not adequately protected may Ontario purchasers of newly built homes. This have been devastating for many Ontario families.”
There are many areas of concern when inspecting a new home that the average home owner would probably never notice and the builders representative will never point out. Some issues that have been previously found are; windows that will not open due to poor design of overhangs, raised floor tile at entrances to bathrooms, floor joists damaged by plumbers, wrong slope on high efficiency furnace vents, lack of insulation in attic, damaged material, wet basements, improperly nailed joist hangers and the list just goes on. When your home is built there is a building permit taken out which part of the cost of goes towards inspections by your local building department. This includes inspections at every stage of your new homes construction. This inspections are supposed to ensure all requirements of the Ontario Building Code are met. Many of the new home buyers problems arise because not all of these inspections were performed, even though you paid for these inspection with the cost of the building permit, which is added onto the price of the home.
Not all builders have problems with their homes or with dealing with new home buyers, but unless you do your homework and take the appropriate steps to protect your investment, you won’t know until it is too late. Google can be your friend when you want to find out about your builder but even that is not guaranteed because many builders operate under a different name for each subdivision that they build. Taking a professional Home Inspector with you during your Pre Delivery Inspection makes sense considering your home is typically one of the largest investments you will make. Let someone who specializes in finding the problems work on your behalf. Of all the permits and charges you pay when buying a new home, your Home Inspector and lawyer are the only people that are working just for you.
Buying a New Home then read the Barrie Home Inspector’s 12 Common Home Defects, then visit www.barriehomeinspector.com to find the best advice on the Home Inspection Process.
