Amendments to New Home Warranty Claims and Procedures
Ontario Regulation 118/23 was introduced under the Ontario New Home Warranties Plan Act. This regulation modifies Regulation 892 of the Revised Regulations of Ontario, 1990, with the primary goal of improving the administration of the Ontario New Home Warranties Plan. This plan serves as a framework for managing warranty claims related to new homes.
The regulation incorporates several significant amendments. First, it includes language adjustments, particularly in the French version, to enhance clarity regarding construction work. It also introduces new definitions, such as “conciliation assessment report” and “conciliation inspection,” which clarify the processes involved in addressing warranty claims. Notably, the previous definition of “initial claim period” has been revoked and redefined to establish a 31-day period after possession for homes with possession dates on or after September 1, 2005.
Additionally, the regulation delineates distinct claim periods for homes based on their possession dates relative to May 1, 2024. For homes with possession prior to this date, existing claim processes remain in effect, while homes with possession on or after this date will follow new procedures that include an initial 40-day claim period, along with mid-year and year-end claim periods. The regulation also allows homeowners to submit multiple claims, which the Corporation will consolidate into a single claim form for efficiency. Vendors are required to address these claims within a specified timeframe of 120 days following submission.
The conciliation process is another area that has been clarified. Homeowners can request conciliation at various stages of their claims, facilitating the resolution of disputes with vendors regarding warranty issues. The regulation outlines specific timelines for conciliation inspections and details the responsibilities of vendors in addressing identified problems. For homes with possession on or after May 1, 2024, a new section outlines the procedure for second-year claims, necessitating that homeowners submit a specific form and clarifying the vendor’s obligations for response.
Moreover, for condominium projects, owners receiving funds for pre-existing elements must adhere to designated claims processes before proceeding with repairs, including allowing necessary inspections by both the vendor and the Corporation. The regulation also provides flexibility in timelines, allowing the Corporation to extend or shorten specific timeframes if extraordinary circumstances, such as health and safety concerns, arise.
By redefining claim periods, establishing clear conciliation procedures, and detailing the responsibilities of homeowners and vendors, the regulation seeks to improve the overall experience for new homeowners in Ontario while preserving essential protections within the warranty framework.
Ontario (118/13) June 24, 2023