Tarion Warranty Corporation Revamps Home Warranty Program
January 24, 2023
On December 15, 2022, the Tarion Warranty Corporation introduced Ontario Regulation 8/23 under the Ontario New Home Warranties Plan Act, amending Ontario Regulation 892 of RRO 1990 (Administration of the Plan).
The amendments to the regulation include changes to subsection 6(3) which relates to the limits of liability regarding the maximum amount payable to an owner from the guarantee fund. Subsection 6(4) and 6(12) now specify the maximum aggregate amount payable from the guarantee fund in the case of a condominium project. Additionally, the amendments introduce section 24, which covers the Temporary Relocation Warranty.
The Temporary Relocation Warranty is designed to provide coverage for new home buyers in Ontario who need to temporarily relocate due to significant defects in their homes while repairs are being made. The coverage is subject to specific eligibility requirements and maximum reimbursement amounts.
The Tarion Warranty Corporation is a non-profit organization in Ontario, Canada, responsible for regulating and administering the new home warranty program in the province. The organization, created by the Ontario New Home Warranties Plan Act in 1976, ensures that builders abide by provincial legislation and protects the rights of new home buyers.
Under the Ontario New Home Warranties Plan Act, all new home builders in Ontario must register with Tarion and provide warranty coverage to their customers. This warranty coverage includes deposit protection, which safeguards a buyer’s deposit if the builder fails to complete the home or goes bankrupt before completion, and warranty coverage for defects in workmanship and materials, which varies in length depending on the type of defect.
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