A note for Common Elements coverage
For most condominiums, the common elements have the below warranty coverage. The condominium corporation is entitled to submit warranty claims for defects in work or materials in the common elements. There is no warranty coverage for the common elements of either a common elements condominium or vacant land condominium. Common elements warranty coverage begins on the date the condominium corporation is registered.
One-Year Warranty
Now that the purchaser has taken possession of their newly constructed freehold home or condominium unit, they are eligible for year one warranty coverage. This coverage begins on the date of possession and lasts one year from that date and includes items such as defects in work and material and unauthorized substitutions. See below for what the year one warranty covers.
Coverage for Freehold, Contract & Condo Units
- Requires a home is constructed in a workman-like manner and free from defects in material
- Protects against Ontario Building Code violations
- Applies for one year, beginning on the home’s date of possession even if the home is sold.
- Protects against unauthorized substitutions
- Requires the home to be fit for habitation
Coverage for Residential Condo Conversion Projects
Pre-existing elements are not covered by the one-year warranty on workmanship and materials. This exception is because the pre-existing elements are often much older and cannot be certified in the same way as the new construction. All other one-year warranty protections, including that the home meets Ontario Building Code regulations, would apply to both the pre-existing elements and the new components of the project.
Two-Year Warranty
The new home warranty continues to provide coverage into year two and include items such as water penetration, heating and electrical. This coverage begins on the home’s date of possession even if the home is sold. See below for what the year two warranty covers.
What is covered for Freehold, Contract & Condo Units
- Protects against water penetration through the basement or foundation walls
- Protects against defects in work and materials that results in water penetration into the building envelope
- Covers defects in work or materials that result in the detachment, displacement or deterioration of exterior cladding (such as brickwork, aluminum or vinyl siding)
- Covers defects in work or materials in the electrical, plumbing and heating delivery and distribution systems
- Applies for two years, beginning on the home’s date of possession
- Protects against violations of the Ontario Building Code that affect health and safety
Residential condominium conversion projects coverage
Coverage would apply to both the new construction and the pre-existing elements. These include: the two-year warranty for water penetration and defects in work and materials in the electrical, plumbing and heating delivery and distribution systems.
Seven-Year Major Structural Defect Warranty
The seven year warranty covers major structural defects (MSD) and begins on the date that the purchaser takes possession of the home and ends on the seventh anniversary of that date.
A major structural defect is a defect in work or materials that:
I) results in failure of a structural load-bearing element of the building;
II) materially and adversely affects the ability of a structural load-bearing element of the building to carry, bear and resist applicable structural loads for the usual and ordinary service life of the element of the building;
III) materially and adversely affects the use of a significant portion of the building for usual and ordinary purposes of a residential dwelling.
What is covered
The seven year MSD warranty includes significant damage due to:
- Soil movement* & major cracks in basement walls
- Chemical failure of materials & environmentally harmful substances or hazards. (i.e., Excessive radon levels)
- Collapse or serious distortion of joints, or roof structure
What is not covered
The seven year MSD Warranty specifically excludes the following:
- Damage to drains or services
- Dampness not arising from failure of a load-bearing portion of the building.
- Damages to finishes
Residential condominium projects coverage
The seven-year warranty for major structural defects applies to both new construction and the pre-existing elements for residential condominium conversions.