Tarion Warranty Corporation (formerly the Ontario New Home Warranty Program): 
Issues related to Extensive Repairs to a New Home

The Issues:

Unfortunately, there are cases where a new home may require extensive repairs after homeowners takes possession and move in to their new home.  There are currently two areas where Tarion does not provide adequate coverage in these cases:

Maximum Payout of $100,000 - Currently, there is a maximum payout (legislative cap) of $100,000.  While this may have been sufficient when this legislative cap was first established in 1976, some 27 years ago, this maximum payout has clearly not kept pace with the increases in the cost of Ontario's new housing in the past 27 years.  Homes with serious problems often exceed this $100,000 cap, and, in these cases, new homeowners are left with no warranty protection for repairs that are in excess of $100,000.

Temporary Accommodation - In cases where extensive repairs are required, in the event that homeowners have to vacate the home in order to have the home repaired, e.g., due to health and safety reasons, Tarion does not allow claims for temporary accommodation costs.


Canadians for Properly Built Homes' Position:

Canadians for Properly Built Homes is calling for an appropriate increase in the maximum payout to reflect the increase in new housing costs since 1976. 

Canadians for Properly Built Homes is also calling on Tarion to allow claims for temporary accommodation costs in cases where extensive repairs are required, as Tarion does currently when there are delays in closing, i.e., $100 per day in living expenses up to a maximum of $5,000 with receipts or $60 per day for living expenses without receipts.

These changes are fundamental to ensuring appropriate protection for Ontario new home purchasers.


What can concerned citizens do?

• Write or telephone your Provincial Member of Parliament and express your concerns.
   
• Write or telephone members of Tarion's Board of Directors. Here is a list of their names and contact information: www.tarion.com/HOME/About+Tarion/Board+Of+Directors/


• Write or telephone Minister Gerry Phillips, the Minister responsible for Tarion and consumer protection generally.  His address is Minister of Government Services, Office of the Minister, 99 Wellesley Street West, Room 4320, Whitney Block, Toronto, ON, M7A 1A1. His e-mail address is: gphillips.mpp@liberal.ola.org.  His telephone number is 416-327-2333.


• Write to Premier Dalton McGuinty and express your concerns.  His address is: Dalton McGuinty, Premier, Legislative Building, Queen's Park, Toronto, ON, M7A 1A1. His email address is dalton.mcguinty@premier.gov.on.ca