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.
The situation in Ontario concerning Tarion's lack of accountability has spawned groups like the "Canadians for Properly Built Homes" (CPBH) which is fighting on behalf of new home buyers for some accountability for The Tarion New Home Warranty Corporation. In 2008 they issued a Press Release: "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."
Your new home starts out with a Building Permit being obtained for the local building department. This permit is also to assure that all the inspections of different stages of building your new home are carried out. Unfortunately, through poor education or lack of inspections, these are inspections sometimes overlooked. This is a sad state of affairs because the home owner is paying Tarion plus the building department for oversight and compliance on their new home. Some of the deficiencies typically found in new home construction are; missing insulation, poorly nailed or improperly nailed shingles, improper slope on furnace vents, windows that won't operate do to poor overhang design, damaged materials, poorly hung doors, loose heat registers, and the list goes on and on.
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.
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.
The situation in Ontario concerning Tarion's lack of accountability has spawned groups like the "Canadians for Properly Built Homes" (CPBH) which is fighting on behalf of new home buyers for some accountability for The Tarion New Home Warranty Corporation. In 2008 they issued a Press Release: "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."
Your new home starts out with a Building Permit being obtained for the local building department. This permit is also to assure that all the inspections of different stages of building your new home are carried out. Unfortunately, through poor education or lack of inspections, these are inspections sometimes overlooked. This is a sad state of affairs because the home owner is paying Tarion plus the building department for oversight and compliance on their new home. Some of the deficiencies typically found in new home construction are; missing insulation, poorly nailed or improperly nailed shingles, improper slope on furnace vents, windows that won't operate do to poor overhang design, damaged materials, poorly hung doors, loose heat registers, and the list goes on and on.
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.
About the Author:
Learn about What is a Home Inspection, then visit The Barrie Home Inspector's site on Home Inspection Articles for all your projects.
