When does your New Home Warranty Protection Begin?
New Homeowneres in Ontario benefit from both deposit protection and warranty coverage. Deposit protection begins the moment a deposit is paid. Warranty coverage takes effect on the date of possesssion and remains in effect, even if the house or condominium unit is sold before the end of the warranty period.
1. Deposit Protection
When you buy a new home you are protected against financial loss, including your deposit, to a maximum of $20,000, if the builder* cannot or will not complete the sale, through no fault of yours. *For simplicity, the term builder also includes a vendor, as defined in the Tarion Plan Act.
2. One-Year Warranty Protection
Depencier Builders Ltd., warrants that the home is free from defects in work and materials, is fit to live in and meets the Ontario Building Code requirements for one year from the date of possession. Homeowners are responsible for notifying both Depencier Builders Ltd., and Tarion in writing of any defects before the end of the first year. If Tarion does not receive notice in writing within the warranty period, the claim will not be accepted. Tarion does not accept e-mail as written notice of complaint. Depencier Builders Ltd., will pass on to you any warranties given by manufacturers, suppliers and subcontractors that extend byond the first year. In these cases, you should make any claims directly to the manufacturer or distributor.
3. Two-Year Warranty Protection
Depencier Builders Ltd., warrants for two years against: – Water seepage through the basement or foundation walls (in condominiums, this protection includes all below-ground aras such as parking garages.) – Defects in materials and work including caulking, windows and doors so that the building envelope prevents water penetration. – Defects in materials and work in the electrical, plumbing and heating delivery and distribution systems. – Defects in materials and work which result in the detachment, displacement or deterioration of exterior cladding. -Violations of the Ontario Building Code’s health and safety provisions
4. Seven-Year Protection Against Major Structural Defects
New Homes are protected for seven years against major structural defects. A major structural defect is defined in the Ontario New Home Warranties Plan Act as: – Any defect in materials or work that results in the failure of a load-bearing part of the home’s structure, or – Any defect in materials or work that significantly and adversely affects the use of the building as a home.
5. Protection Against Delayed Closing for Freehold Buyers
Depencier Builders Ltd., can extend the closing date up to a total of 120 days at any time prior to closing by giving written notice of the extension. However, if Depencier Builders Ltd. does not give written notice of an extension within certain time periods, you may be able to claim compensation for your out-of-pocket expenses when you become the owner.