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.
Home buyers in Canada rarely buy a home without a home inspection. If you decide to buy a home without a Home Inspection most Realtors will have you sign a waiver indicating your choice. This is because they know the risks involved and they are professionals. Canada Mortgage and Housing Corporation recommends you hire a Professional Home Inspector to inspect any home you are buying. Tarion never mentions your right to have a Home Inspector accompany you for your Pre Delivery Inspection and actually has made it harder by stating that you may have to notify the builder in writing if you want to have a "designate" accompany you.
There has been Private members bills introduced in parliament to have Tarion Corporation held accountable by the Provincial Ombudsman. This is not to be confused with the Tarion Ombudsman that has their office at Tarion and works for Tarion. So far there has been no change in Tarion's role and there is no protection for the consumer when things go wrong.
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."
There are many areas of concern when inspecting a new home that the average home owner would probably never notice and the builders representative will never point out. Some issues that have been previously found are; windows that will not open due to poor design of overhangs, raised floor tile at entrances to bathrooms, floor joists damaged by plumbers, wrong slope on high efficiency furnace vents, lack of insulation in attic, damaged material, wet basements, improperly nailed joist hangers and the list just goes on. When your home is built there is a building permit taken out which part of the cost of goes towards inspections by your local building department. This includes inspections at every stage of your new homes construction. This inspections are supposed to ensure all requirements of the Ontario Building Code are met. Many of the new home buyers problems arise because not all of these inspections were performed, even though you paid for these inspection with the cost of the building permit, which is added onto the price of the home.
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.
Home buyers in Canada rarely buy a home without a home inspection. If you decide to buy a home without a Home Inspection most Realtors will have you sign a waiver indicating your choice. This is because they know the risks involved and they are professionals. Canada Mortgage and Housing Corporation recommends you hire a Professional Home Inspector to inspect any home you are buying. Tarion never mentions your right to have a Home Inspector accompany you for your Pre Delivery Inspection and actually has made it harder by stating that you may have to notify the builder in writing if you want to have a "designate" accompany you.
There has been Private members bills introduced in parliament to have Tarion Corporation held accountable by the Provincial Ombudsman. This is not to be confused with the Tarion Ombudsman that has their office at Tarion and works for Tarion. So far there has been no change in Tarion's role and there is no protection for the consumer when things go wrong.
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."
There are many areas of concern when inspecting a new home that the average home owner would probably never notice and the builders representative will never point out. Some issues that have been previously found are; windows that will not open due to poor design of overhangs, raised floor tile at entrances to bathrooms, floor joists damaged by plumbers, wrong slope on high efficiency furnace vents, lack of insulation in attic, damaged material, wet basements, improperly nailed joist hangers and the list just goes on. When your home is built there is a building permit taken out which part of the cost of goes towards inspections by your local building department. This includes inspections at every stage of your new homes construction. This inspections are supposed to ensure all requirements of the Ontario Building Code are met. Many of the new home buyers problems arise because not all of these inspections were performed, even though you paid for these inspection with the cost of the building permit, which is added onto the price of the home.
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.
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Learn about What is a Home Inspection, then visit The Barrie Home Inspector's site on Home Inspection Articles for all your projects.
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