Oakville Real Estate News

Are You Covered Under Tarion Warranties For Resale Homes?

Blog by Joette Fielding | January 29th, 2013

Did You Know That If Your Home Is Less Than 7 Years New, You May Be Tarion LogoEntitled To The Benefits Of Any Remaining Tarion New Home Warranties?   

Reselling New Homes 

The ONHWP Act statutory warranties which protect new homes follow the home when it is sold and are valid until they expire. As a result, the buyer of new homes that is less than 7 years old will still have the benefit of the statutory warranties and should know his or her rights.

Are you buying a new home but not from a builder or reselling your new home?

If you are buying a new home from a person who is not the new home builder, you may be entitled to the benefit of any remaining statutory warranties. If you bought a new home and are selling within the first 7 years after taking possession, it is important to know that any remaining warranties on the home pass to the new owner.

Warranties Follow the Home

A homeowner is entitled to statutory warranties applicable to the home for the period of the warranties but only during the owner’s period of ownership. When a property under warranty is transferred, the new owner acquires all remaining statutory warranty rights. To the extent that there are warranty claims which can be made within applicable time limits which have not been resolved, those claims can be made by the new owner. To the extent that there are warranty claims which have been made by the disposing owner but not yet resolved (by Tarion or perhaps the Licence Appeal Tribunal), the new owner may, but is not required to continue those claims. A prospective purchaser of a new home less than 7 years old, should therefore consider the following:

Ask the seller to provide details of any warranty claims made to the builder or Tarion which have been made or maybe then pending, with respect to alleged defects or deficiencies in the home and the results of such claims, (e.g., repairs made, compensation paid, settlement (releases signed).

A home buyer can also contact Tarion and upon proving that he or she has entered into a purchase agreement to buy the home, can request information regarding the warranty status of the home. A knowledge of previous defects may be helpful information in connection with any inspections which you as a prospective buyer may undertake.

If there are any pending claims, the buyer and seller should discuss these so that you each have a clear understanding of how these claims will be addressed. For example, if you both agree there are valid defects, this may be considered in connection with the sale price of the property.

If there are claims which have not yet been resolved, you each should agree on who will be entitled or be responsible for processing the claims following the sale and who will gain the benefit of any remedy provided by the builder and Tarion. In the absence of any agreement, the right to pursue any then outstanding warranty claims will pass to the new owner. For administrative reasons, Tarion will ask the new owner to fill out forms for such claims showing the new owner.

If you have any questions or concerns:

Speak to your lawyer and have him/her explain the Ontario New Home Warranty Plan and what warranties may still be available to you.

Review Tarion’s website (tarion.com) for information about the warranty program.

Contact Tarion at 1-877-982-7466.

If you as purchaser of the home identify new deficiencies, you can submit your claim to Tarion.

Start by contacting Tarion and providing evidence that you are the owner (e.g., copy of the registered transfer/deed of land).

Tarion will then provide you with the necessary forms.

Fill out the forms carefully and pay attention to the deadlines for submitting claims.

Are you buying a new home never occupied?

If the seller bought from the original builder but did not live in the home, he or she is known as a “reseller.”

A “reseller” is someone who bought a new home from a builder, but instead of living in it, decided to sell it to another purchaser. You should ask the reseller the following questions:

When was the home purchased from the builder? (The warranties have time limits.)

Did the reseller make any changes to the work done by the builder? (Such work will not be covered by warranty.)

You are entitled to receive from the reseller:

A Reseller Information Sheet: this sheet will set out important information about the warranty coverage on the home, including the warranty start date and the applicable timelines for submitting claims to Tarion. It is best to obtain this before you sign a purchase agreement.

A Homeowner Information Package which describes the warranty coverage on the home in detail and contains the statutory warranty forms for submitting claims to Tarion

If you are in doubt about whether or not you are buying from a reseller or have other questions, please contact Tarion at 1-877-982-7466.

For complete details about your Tarion Warranty Coverage for resale homes, it is important that you review Tarion’s website (tarion.com) or contact them at 1-877-982-7466.

Exerpt Taken From The Tarion website:  http://www.tarion.com/



Your Oakville Real Estate Agents!  


For all your real estate needs, call The Fielding Team or visit our website at http://www.thefieldingteam.com/ 


The Fielding Team


 Your #1 Source for Real Estate!