A warranty plan from a builder, known as a Tarion, can protect your deposit on a new build up to certain amounts. At Hallmark Attorneys LLP, we can help you determine if the warranty was purchased, the provisions of the warranty, and the protection of your rights if any issues arise.
What Is Tarion?
Tarion is the current name for the warranty plan that covers new homes and condominiums purchased from a builder in Ontario. All builders must be registered in this program and the warranty is mandatory.
The warranty protects deposit money paid, up to $20,000 for condominiums and up to $60,000 for freehold homes with a sale price of up to $600,000. For homes over $600,000 the warranty protects deposits paid amounting to 10% of the purchase price up to a maximum of $100,000.
Tarion will also ensure you receive compensation for costs associated with delayed closing up to a maximum of $7,500, provided the builder extends the closing date without sufficient notice as required by Tarion.
Understanding What Tarion Covers
Tarion covers materials and labour for minor matters for up to one year from the closing date (or occupancy date in the case of condominiums). It covers systems and water penetration for a period of two years, and major structural issues for up to seven years.
The cost of the warranty is normally paid by the buyer. The amount charged is based on your purchase price.
For More Information, Contact Hallmark Attorneys LLP
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