Public Meetings & Consultations

The submission process

1. Tarion will post draft materials and background information to receive feedback in the Current section of the Public Consultations page. A final submission deadline will be stated with each posting.
    
2. Tarion will accept public input on proposed policy initiatives for a certain period of time, as stated with initial postings. Policies that have not been approved by the Board of Directors but have been through the formal consultation period will be found in the In Process section of the Public Consultations page. Submissions will no longer be accepted at this point.
    
3. All submissions are collected and analyzed by Tarion's senior management and final recommendations are prepared for the Board of Directors to review.
    
4. After final recommendations have been approved by the Board of Directors and the regulation comes into effect, it will be posted in the In Effect section on the Public Consultations page. An effective date is posted with all final documents.
    
5. Individuals that provided Tarion with feedback and all Tarion's registrants will receive notification when policies or regulations come into effect.

We appreciate your invaluable feedback, as your input is crucial to Tarion’s policy process and continuous improvements. Although Tarion’s public consultations focus on specific recommendations and questions, if you have additional comments, recommendations or feedback on other Tarion processes and policies we would be pleased to receive them at submissions@tarion.com
 

Tarion is seeking public feedback on regulatory changes to deposit protection policy to ensure protection for current and future new home purchasers and help identify and combat illegal activity.

Following a policy consultation earlier this fall, Tarion modified the proposed policy changes and is now consulting on proposed changes to Regulation 892 including:

1. Requiring purchasers of new freehold homes (including freehold homes on parcels-of-tied-land) to provide notice and information to Tarion about their new home purchase within 30 Days after entering into an agreement of purchase and sale with a vendor/builder to qualify for the maximum entitlement to deposit coverage.

2. The notice to Tarion would potentially include specific information about the purchaser, address, builder, and deposit paid using a simple online, free, portal.

3. Introduce a variable compensation limit for freehold home deposit coverage depending upon whether the purchaser provides notice to Tarion that they have entered into a new home purchase agreement as would be required. Purchasers that do not provide notice to Tarion would continue to be eligible for deposit coverage at the variable limit up to the current maximum.

Based on the earlier public consultation Tarion has amended the proposed changes to:

• Allow for a longer implementation timeline where the requirement will be effective July 1, 2025; however, changes to coverage will not be in force until January 1, 2026,
• To help reduce onus on purchasers, allow for a purchaser’s lawyer, agent, or representative to provide this notice on the purchaser’s behalf;
• Doubling the size of the proposed fund available for those who do not provide notice in the applicable timeframe from the initial proposed $5 Million to now $10 Million, providing an increase in coverage for purchasers who do not register.
• Deferred for future consideration and consultation changes to when Tarion collects its enrolment fee due to concerns about the impact on housing affordability and potential impacts on business processes.

In all cases, consumers will continue to be eligible for some deposit protection compensation, even if they purchase from a builder operating illegally and do not provide notice to Tarion within the specific time. Maximum deposit coverage, however, will require timely notice to Tarion. This proposal does not impact a homeowners construction warranty which apply to the home after occupancy.

When consumers notify Tarion that they have entered into an agreement to purchase a new home, this will allow Tarion to verify that the builder has complied with licensing requirements, is authorized to sell, and take proactive actions to mitigate possible deposit and warranty claim impacts to consumers and combat illegal builders with the Home Construction Regulatory Authority (HCRA).

These proposed changes are necessary to ensure that purchasers continue to benefit from deposit coverage for new freehold home purchasers. Without a change to the program, deposit coverage exposure for freehold homes is impossible for Tarion to assess and fundamentally threatens the viability of the warranty program, impacting Tarion’s ability to provide deposit coverage and leaving consumers at risk.

You can find more details of the changes in the consultation discussion guide.

Please review the consultation questions found in this document and submit any feedback on the proposed changes or the draft regulation to submissions@tarion.com or through Ontario’s Regulatory Registry by January 15, 2025.

Tarion is seeking public feedback on proposed changes to Tarion’s deposit coverage framework to help combat illegal vending of new homes and ensure coverage for current and future new home purchasers.

Specifically, Tarion is consulting on the following proposed changes:

1. Requiring purchasers of new freehold homes (including freehold homes on parcels-of-tied-land) to provide notice and information to Tarion about their new home purchase within a specific period of time after entering into an agreement of purchase and sale with a vendor/builder to qualify for the maximum entitlement to deposit coverage.
   1. The notice to Tarion would include information about the purchaser, builder, and deposit paid.  
2. Introduce a variable compensation limit for freehold home deposit coverage depending upon whether the purchaser provides notice to Tarion that they have entered into a new home purchase agreement as would be required. Purchasers that do not provide notice to Tarion would continue to be eligible for deposit coverage at the variable limit.  

In all cases, consumers will continue to receive the full warranty coverage and protections of the construction warranty against defects in their new home. 

Additionally, Tarion is seeking public input on changing how Tarion collects fees; namely to charge a portion of the enrolment fee to vendors/builders earlier before purchase agreements are signed to better cover the deposit protection risk. 

For further information on the proposed changes, please review the consultation discussion guide.

Providing notice to Tarion of the new home purchase agreement will involve minimal effort for purchasers and would be online, free, and easy to do – and gives Tarion the ability to provide information about the warranty program directly to the purchaser. This change would be supported by a continued, large public awareness campaign to educate potential purchasers, realtors, legal professionals, and mortgage professionals.

When consumers notify Tarion that they have entered into an agreement to purchase a new home, this will allow Tarion to verify that the builder has complied with licensing requirements, is authorized to sell, and take proactive actions to mitigate deposit and warranty claim losses and combat illegal vending with the Home Construction Regulatory Authority (HCRA). For example – action may be taken where a purchaser provides notice of entering an agreement with a builder that does not match Tarion’s records relating to the builder’s license and enrolments. The changes are meant to increase consumer engagement in relation to the deposit warranty process.  

These proposed changes are necessary to ensure that purchasers continue to benefit from deposit coverage for new freehold home purchasers. Without a change to the program, deposit coverage exposure for freehold homes is impossible for Tarion to assess and fundamentally threatens the viability of the warranty program, impacting Tarion’s ability to provide deposit coverage and leaving consumers at risk. 

Please review the questions in the consultation discussion guides and submit any feedback on the proposed changes to submissions@tarion.com by November 25, 2024.  

While this consultation focusses on specific proposed changes and questions, if you have additional comments, please send them to submissions@tarion.com. Please title these with the subject “Additional Submissions”.

Tarion recognizes that not every topic will be relevant to each individual or organization.  We would encourage you to provide comments on the topics that are relevant to you or your organization.

Tarion is making significant enhancements to the new home warranty program with a new Customer Service Standard (CSS) which will improve the warranty process and create a more transparent, fair, and accountable new home warranty and protection program for homeowners.

The Customer Service Standard is the key process for how warranty claims are handled and how homeowners can seek assistance from Tarion. 

Following the implementation of interim measures in September 2020, and multiple public consultations in 2020, 2021, and 2022 to solicit feedback on proposed changes, Tarion has now made regulatory changes to improve the Customer Service Standard, effective July 1, 2023, by:

• Creating a new requirement that Tarion must schedule a conciliation inspection within 15 days of the request being made and make changes to the current timeline requirements for conducting the conciliation inspection and issuing the conciliation assessment report.

To ensure a smooth transition process, the following changes will take effect for people who have a date of possession on or after May 1, 2024:

• Extending the initial homeowner submission period by 10 days (now 40 days).
• Making the interim 10-day grace period at the end of the first-year warranty period permanent.
• Creating a mid-year submission at six months.
• Allowing homeowners to add items to a running list of potential defects at any time during the first-year warranty period.
• Expanding when homeowners can ask for a conciliation inspection during the first-year warranty period by removing the 30-day timeline for a homeowner to request a conciliation and instead allowing them to request a conciliation for each submission from the time it is submitted up until the next submission date.

Additional information and stakeholder education will be provided in advance of the May 1, 2024, in-effect date.

These improvements to the CSS build on previous changes Tarion has made, such as launching a new homeowner e-learning hub, creating a simple and cost-effective mediation process for homeowners, and increasing the warranty compensation limits for freehold homes, condominium common elements, and hazardous substances.

For more information on these new measures, please view our Backgrounder and Q&A here. 

We are making these changes and creating a stronger new home warranty and protection program to protect all Ontarians and increase consumer confidence when making one of their most important purchases, a new home. 

We want to thank those who participated in the past consultations on the proposed changes. The feedback and input we received has been crucial for improving the new home warranty process. 

Tarion is launching a consultation on certain items from the Construction Performance Guidelines (CPG). The CPG sets out the acceptable performance standards that apply to a number of the most commonly identified after sales warranty issues.  The CPG helps promote confidence in the new home construction sector by providing a consistent framework on how warranty questions may be determined. 

In identifying which elements from the CPG to include in this consultation, Tarion used various data sources including Tarion's data on warranty claim items, results from the 2023 CPG Survey, and outstanding topics from the 2019 CPG review cycle.

Tarion is now consulting on a number of proposed changes to the CPG, specifically:

• General updates to align the CPG with the current regulatory environment and Tarion processes.

New Article 1.19 “Radon” which incorporates Tarion’s current approach to assessing radon claims into the CPG for consistency and transparency.

Revised Article 6.14 “Sewer, Drains or Fixtures Blocked” to enhance clarity.

Revised Article 5.6 “Ice Buildup on the Roof” to align with the approach presented in article 2.9 "Excessive Icicle or Ice Damming Formation" from the Common Elements CPG, which has been in effect since 2012.

Created a new “Assessment Checklist for Homes with Ice Buildup on Roofs”, a checklist to support Article 5.6 as an assessment tool for builders and Tarion staff.

For further information on the proposed changes, please review our discussion guide.
Please complete the consultation survey found here or review the consultation questions found in this document and submit any feedback on the proposed changes to submissions@tarion.com by January 29, 2024.

This consultation is part of a long term annual cycle whereby Tarion will reviewing 3-5 issues relating to the CPG each year, with the issues being chosen based on survey and claims experience data.

 Review Of Builder Bulletin 28 – Tarion Requirements For Receipt And Release Of Security
 

Thank you for sharing your invaluable feedback during the review of Builder Bulletin 28 (BB28): Tarion Requirements for Receipt and Release of Security. Your input is crucial to raising the level of consumer protection for buyers and owners of new homes in Ontario.

Tarion is in the process of analyzing and reviewing all feedback as part of our policy development. We will continue to keep homeowners and builders informed of any changes to this initiative.

Background

From 2016 to 2019, Tarion conducted a review of BB28 which included seeking public input to improve our policies to ensure they are more current, better targeted to risks, and easier to use and understand.

Key changes between the proposed models and the current BB28 policy included the following: 

1. The policy has been separated out by product type, with a standalone policy for each of freehold, condo C/D, and low-rise products. This makes the documents easier to use and easier to change in the future. Future consideration could be given to further refining the policies to include separate consideration of contract/custom homes or of condo types C & D. 
2. The policy has been framed expressly as a guideline as opposed to a set of prescriptive rules. This recognizes the reality that security adjustments may have to be customized in any given situation. 
3. The risk assessment model has been entirely revised. The new model uses a matrix approach based on tenure (for freehold) or completed projects (for condo type C&D), and risk factors. The model has been reframed to use tenure or completed projects as the primary driver, with size, credit, claims history and equity as secondary factors. 

To view Tarion's most up-to-date policies on receipt and release of security, visit our Registrar Bulletin page. 

Tarion Seeking Feedback on Consumer Protection Initiatives

Tarion is committed to building a more transparent, fair, and accountable new home warranty and protection program for all Ontarians.

Following previous consultations on proposed policies to address the recommendations and other consumer protection initiatives in the spring and fall of 2021, Tarion is now consulting on regulatory changes to support improvements to the Customer Service Standard, an increase to the warranty compensation limit, and the creation of a Temporary Relocation Warranty.

Specifically, Tarion is consulting on proposed changes to Regulation 892 under the Ontario New Home Warranties Plan Act to:

• Extend the initial homeowner submission period by 10 days (now 40 days) and make the current grace period of 10 days at the end of the first year permanent.
• Create a mid-year submission at six months.
• Allow homeowners to add items to a running list of potential defects at any time during the first-year warranty period.
• Remove the 30-day timeline for a homeowner to request a conciliation and instead allow them to request a conciliation up to 120 days after the close of the first year for any items submitted during the first year. 
• Remove the 30-day timeline for a homeowner to request a conciliation in year two of the warranty and instead allow them to request a conciliation up to 120 days after the close of the second year for any items submitted during the second year. 
• Create a new requirement that Tarion must schedule a conciliation inspection within 15 days of the request being made and make changes to the current requirements for timelines of conducting the conciliation inspection and issuing the assessment report.
• Increase the warranty compensation limit available from Tarion relating to freehold homes (i.e., lot and dwelling) that do not benefit from additional Common Element protections from $300,000 (current) to $400,000 (proposed).
• Create a new Temporary Relocation Warranty of $150/day, to help cover costs associated with temporary accommodations if a repair renders the home uninhabitable.                       

For further information on the proposed changes, please review our Discussion Guide & Public Q&A

Tarion is accepting feedback between September 29 and November 14, 2022. Those interested in providing comments are encouraged to submit them through Ontario’s Regulatory Registry or to Submissions@Tarion.com.

While this consultation focusses on specific recommendations and questions, if you have additional comments, please send them to submissions@tarion.com. Please title these with the subject “Additional Submissions”.

Tarion is seeking public input on a proposed new enrolment fee schedule under the new home warranty and protection program.

Given recent financial market volatility, inflationary effects including the rising costs of construction and repairs, as well as the ongoing need for investments in the operations of the organization to continue to improve service delivery, Tarion is proposing to implement changes to our enrolment fee structure.

Tarion is proposing to:

• Not change enrolment fees for homes starting with a sale price under $500,000.
• Implement an enrolment fee increase of on average $300 for homes between $500,000 and $1.5 Million. The $300 fee increase will be applied progressively (i.e., higher fee increase on a more expensive home).
• Extend the enrolment fee range in the schedule from the current upper limit of $1.5 million to a new upper limit of either $4 million or $6.7 million with homes greater than $1.5 million paying a fee of 0.15% of the sale price.

For those interested in providing feedback they can provide input by emailing submissions@Tarion.com or by completing our online survey by September 28, 2023.

To learn more about Tarion’s proposed new enrolment fee schedule, please go to our online survey here.

Consultation On Proposed Changes To Its Customer Service Standard And Additional Consumer Protection Initiatives

Thank you for sharing your invaluable feedback during the Consultation on Proposed Changes to the Customer Service Standard (CSS) and Additional Consumer Protection Initiatives. Your input is crucial to guiding Tarion’s continued role in administering new home warranties and protections.

Tarion is in the process of analyzing and reviewing all feedback as part of our policy development. We will continue to keep homeowners, builders and industry informed of any changes to this initiative.

Background

On October 30, 2019, the Auditor General of Ontario released a Special Audit of Tarion Warranty Corporation. Tarion is committed to building a more transparent, fair, and accountable new home warranty and protection program for all Ontarians. We have made it a priority to implement the recommendations from the Auditor General’s report in a timely manner.

To date, Tarion has implemented 19 of 25 recommendations.

Tarion held a public consultation from March 15, 2021 to April 30, 2021 on proposals to address the remaining recommendations of the Auditor General, as well as an additional consumer protection initiative. 

Tarion consulted on proposed changes, including:

• Two options for a new customer service standard to address Auditor General recommendation #6,
• A new policy on unfinished items at the time of possession to address Auditor General recommendation #5,
• A new process for information-sharing with municipalities to address Auditor General recommendation #17, and
• A new accommodation warranty for homeowners who have to relocate during repairs of a warranted item.

For further information on the proposed changes, please review our discussion guide and public Q&A. 

For more information on Tarion's Implementation Plan to address the Auditor General of Ontario's recommendations, please click here.
 

Formalizing The Repair Warranty
 

Currently, there is a longstanding, informal policy to warrant repairs made by builders or Tarion, for one year from the date of initial repair.  This informal policy has been generally accepted by the building industry and the Licence Appeal Tribunal.

Following extensive stakeholder feedback on our proposed Builder Bulletin 50 that lays out the process for how this policy would be administered and how it fits within our current warranty framework, we are in the process of analyzing and reviewing submissions. 

Tarion Improving New Home Warranty And Protection Program For New Home Buyers
 

Tarion is committed to building a more transparent, fair, and accountable new home warranty and protection program for all Ontarians.

Following public feedback received earlier this year, Tarion is making significant enhancements to the new home warranty coverage provided by builders in Ontario by increasing the warranty compensation limit to $400,000 for new freehold homes and creating a new Temporary Relocation Warranty.

The increase to the Warranty Compensation Limit from $300,000 (current) to $400,000, applies to freehold homes in which the homeowner owns the land and the home, such as detached, semi-detached homes, some townhouses. This increase will provide new freehold homeowners in Ontario with the highest overall coverage available in Canada when compared to coverage amounts set out by other provincial warranty programs.

The warranty compensation limit for condominium units will not increase, as those homes already benefit from additional coverage under the builder’s Common Elements warranty. The Common Elements warranty coverage for condominiums was increased to $3.5 million in 2021.

The new Temporary Relocation Warranty of $150/day - up to a maximum of $15,000 - will help defray costs homeowners may have to pay associated with temporary accommodations. This coverage for both condominium and freehold homeowners applies if a warranted repair renders the home uninhabitable and they are required to relocate while repairs or remediation is completed.   

The proposed improvements will come into effect on July 1, 2023, and will help homeowners who enter into a purchase agreement on, or after, that date. Tarion consulted on both these proposed policies in 2021 and 2022, and on draft regulations in fall 2022. Thank you for sharing your feedback on how to create a stronger and more transparent new home warranty and protection program for all Ontarians. The input we received has been crucial for improving the new home warranty process.

For more information on these new measures, please view our Q&A here.

We are making these changes and creating a stronger new home warranty and protection program to protect all Ontarians and increase consumer confidence when making one of their most important purchases, a new home.

Consultation On New Agreements And Changes To Builder Bulletins

On February 1, 2021, the Home Construction Regulatory Authority (HCRA) was designated as the regulator of new home builders and vendors under New Home Construction Licensing Act, 2017. Tarion is no longer responsible for registering builders and vendors of new homes but will continue to administer warranties and protections under the Ontario New Home Warranties Plan Act.

Due to these changes, Tarion was required to adjust its operational policies. Tarion therefore consulted on proposed changes, including:

• Eliminating certain Builder Bulletins and updating others to address changes to Tarion’s mandate following the launch of the HCRA;
• Creating four new Registrar Bulletins; and 
• Developing new standardized Vendor and Builder Agreements to align with the new home enrolment process.

Additionally, Tarion renamed existing and new bulletins as “Registrar Bulletins” and re-numbered them to provide a coherent and sequential framework. These changes were implemented to help ensure a smooth transition for the launch of the new regulatory authority. 

You can view the final versions of these documents and all newly renamed Registrar Bulletins at the pages linked below:

• Registrar Bulletins
• Vendor and Builder Agreements

For further information on the Builder Bulletin and Vendor and Builder Agreement consultations that took place, please review our discussion guide here.  

Tarion remains committed to modernizing and building a more transparent, fair, and accountable new home warranty and protection program, and will continue to apply necessary resources to implement the Auditor General of Ontario’s recommendations and other consumer protection initiatives. 

The successful launch of the HCRA is just one more step towards building a transparent, fair and accountable new home warranty and protection program to provide stronger consumer protection for Ontarians.

Below is important information on the launch of the HCRA and additional information on changes at Tarion as part of this transition, including new requirements around the addendum, and frequently asked questions:

Tarion and HCRA – Guide for Builders

Frequently Asked Questions - HCRA Transition and Changes at Tarion

HCRA Launch and New Changes at Tarion (Presentation)

Agreements of Purchase and Sale Requirements - Effective February 1, 2021

Registrar's Advisory - Transitional and Other Matters as of February 1, 2021 

Updated Home Enrolment Fee Schedule

On February 1, 2021, the Home Construction Regulatory Authority (HCRA) will be designated as the regulator of new home builders and vendors under the New Home Construction Licensing Act, 2017. At that time, Tarion will no longer be responsible for registering builders and vendors of new homes but will continue to administer the warranties and protections under the Ontario New Homes Warranties Plan Act. 

Following public feedback received earlier this year, Tarion is moving forward with a reduction in home enrolment fees under the new home warranty and protection program to offset the new fees being charged by the HCRA.

Effective February 1, 2021, Tarion will be lowering home enrolment fees by $55 per enrolment which will reduce the average enrollment from $1,080 to $1,025. 

Additionally, in partnership with the HCRA, Tarion is proposing to collect the HCRA Regulatory Oversight Fee, on behalf of the HCRA at the time the builder enrols the home with Tarion.

This will allow Tarion and the HCRA to reduce the regulatory burden on builders, leveraging Tarion’s existing enrolment fee process to collect both clearly identified fees and provide builders with a “one window approach” that would satisfy the enrolment-related process requirements for both Tarion and the HCRA.

To find out more about the HCRA fee schedule please click here.

Improvements To Customer Service And Consumer Protection Under The New Home Warranty And Protection Program
 

Following public feedback received earlier this year, Tarion is moving forward with new consumer protection initiatives to address recommendations  made by the Auditor General of Ontario, as well as additional improvements to the new home warranty and protection program. 

Tarion is committed to implementing all 25 recommendations received by the Auditor General of Ontario as we continue to work to build a more transparent, fair, and accountable new home warranty and protection program.

Since the release of the Auditor General’s report, Tarion has implemented 19 of the Auditor General’s recommendations in 2020, with only six remaining to be implemented in 2021.

The new improvements include:

• A new e-learning hub with plain-language modules to help homeowners understand their warranty coverage, rights and responsibilities and the importance of the Pre-Delivery Inspection (PDI); 
• A new timely and cost-effective mediation option for homeowners who dispute Tarion’s warranty assessments, using independent mediators;
• A new targeted inspection program aimed at higher risk builders to proactively identify potential deficiencies relating to Ontario’s Building Code prior to occupancy.
• Updated policies related to performance security and collections , to bolster builder accountability if they do not honour their warranty obligations;
• A new risk-based inspection program to proactively identify potential deficiencies related to Ontario Builder Directory violations during construction;
• Requirements that builders provide Tarion with information regarding title and title restrictions for condominium construction projects deemed to be high-risk;
• Additional disclosure to purchasers of restrictions that could cause delay or cancellation of a project; and
• Improvements to the Ontario Builder Directory to include additional helpful information such as defects a builder refused to repair, unpaid money a builder owes to Tarion, and the investigations into a builder’s behaviour that found they lacked honesty and integrity.

Tarion has also implemented changes which take effect for all Agreements of Purchase and Sale signed on, or after, February 1, 2021:

• A new requirement for a Warranty Information Sheet to be attached to all purchase agreements to provide clear and helpful warranty information at the time of sale; 
• A new requirement for builders to provide Tarion with purchaser contact info to allow for earlier communication about the importance of the PDI as well as key elements of the new home warranty that would apply during the pre-possession period.

Finally, as consulted on earlier this year, Tarion is also moving forward with an additional consumer protection initiative to change some warranty compensation limits, including:

• Increasing the compensation limit for claims involving hazardous substances (such as mould and radon)
• Increasing the compensation limit for defects relating to condominium common elements (such as parking garages, and exterior cladding); and
• Increasing the compensation limit on septic system issues where homes have a separate septic system.

Thank you for sharing your feedback on creating a stronger and more transparent new home warranty and protection program for all Ontarians. The input we received has been crucial for improving the new home warranty process. For more information on these new measures, please view our Q&A.

We are confident that the changes we are making will help homeowners and create a stronger new home warranty and protection program for all Ontarians.

As we work to address all of the Auditor General’s recommendations, we will continue to provide regular updates on our progress. Tarion’s implementation plan to address the Auditor General’s recommendations can be found here. 

Interim Enhancements To The Customer Service Standard

Effective September 14, 2020, homeowners will benefit from interim changes to Tarion’s Customer Service Standards to better protect homeowners under the new home warranty and protection program including:

• Increasing homeowners’ ability to access help from Tarion by adding 10-day grace periods to:
  • The initial 30-day claim submission period
  • The initial 30-day request for conciliation period
  • The year-end claim submission period with written evidence the homeowner reported items to their builder during the first year warranty period
  • The year-end request for conciliation period
• Allowing homeowners to add additional items to forms during the 30-day and year-end claim submission periods
• Tarion is increasing the types of claims that can be addressed anytime in the first year by expanding the definition of emergency claims to include any water penetration claims

Tarion sought public input on these interim changes from January to March of 2020, including hosting eight roundtables with over 250 homeowners and receiving over 100 written submissions. Thank you for sharing your invaluable feedback on how to improve the Customer Service Standard. 

To help homeowners get the assistance they need, Tarion encourages all homeowners to register for MyHome right after occupancy.  The MyHome online portal is an easy-to-use and convenient way for homeowners to manage their warranty claims. MyHome provides homeowners with notification of important warranty timelines, the ability to submit warranty claims to both the builder and Tarion simultaneously, and a mechanism to request Tarion’s assistance when needed. 

VIEW THE Q&A WITH FURTHER INFORMATION 

VIEW AMENDED ONTARIO REGULATION 892

Tarion also recently released their implementation plan on the Auditor General of Ontario’s recommendations and sought public input on additional changes to the Customer Service Standard for 2021 to address the Auditor General’s recommendation 6 in full, including reducing the builder repair period, as well as further consumer protection initiatives coming into force later this year.
 

Consultation On Topics From The Auditor General Of Ontario’s Report On Tarion

Thank you for sharing your invaluable feedback on the new consumer protection initiatives and the implementation of the Auditor General’s recommendations. Your input is crucial to improving consumer protection for buyers and owners of new homes in Ontario.

Tarion is in the process of analyzing and reviewing all feedback to date as part of our policy development. We will continue to keep homeowners and builders informed of any changes to this initiative.

Background:

On October 30, 2019, the Auditor General of Ontario released the Special Audit of Tarion Warranty Corporation.

Tarion is committed to building a more transparent, fair and accountable new home warranty and protection program and has made it a priority to implement the recommendations from the Auditor General’s report in a timely manner. To view Tarion’s plan to implement the recommendations, please see here.

In the summer of 2020, Tarion sought input from stakeholders and the public on the following recommendations:

• Establishing new rules and processes to help homeowners better understand the importance of the Pre-Delivery Inspection;
• Clarifying information on new home warranties and homeowners’ rights in the Homeowner Information Package;
• Changing the Customer Service Standard to improve homeowners’ ability to seek assistance from Tarion;
• Establishing new rules for the timely Tarion resolution of homeowners’ disputes with builders;
• Establishing a timely and cost-effective Tarion mediation process for homeowners;
• Requiring builders to provide Tarion with title information for high-risk proposed condominium construction projects and to disclose restrictions that could cause delay or cancellation of the project;
• Implementing a risk-based inspection process to proactively identify potential; deficiencies during construction, including those related to the Ontario Building Code during construction; and
• Improving the Ontario Builder Directory to include additional information about builders.

Tarion also sought input on the warranty compensation caps on claims related to environmentally harmful substances or hazards, septic systems and condominium common elements and providing compensation to homeowners in instances where they have to relocate while repairs are underway which arose from a warranted item.

Further Information on the proposed improvements can be found within our discussion guide and Q&A.

Enhanced Disclosure For Buyers Of Pre-Construction Condominiums

Purchasers of pre-construction condominium units in projects commenced after January 1, 2020 will benefit from more information that will help them make a more informed purchase.  Agreements of purchase and sale for units where the first purchase agreement for the project or phase of a project is signed after this date will include an information sheet at the front of the purchase agreement that outlines some of the key potential risks of buying a pre-construction condominium. These include potential early termination conditions like securing satisfactory financing and minimum unit sales for the project to proceed, and required approvals from the municipality.  

The information sheet will also emphasize the importance of buyers having the purchase agreement reviewed by a lawyer familiar with condominium transactions. Such a review will help purchasers be better informed of the risks of purchasing a unit in a pre-construction condominium and their rights and obligations. 

More information about the mandatory information sheet is available here.

Background

On February 20, 2019, the Ministry of Government and Consumer Services announced new initiatives to enhance consumer protection for purchasers of residential condominium units in a pre-construction standard or phased condo project. The initiatives included enhancing disclosure for consumers about the potential risks of buying a residential condominium unit in a pre-construction standard or phased condo project.