In the Toronto Star’s “New in Homes” section, Julie DiLorenzo writes that newly built “loft-style” homes are eligible for warranty coverage that is backed by Tarion, while “loft conversions” are not.

When it comes to warranty coverage, not all lofts are created equal. DiLorenzo notes that an increasing number of industrial buildings around the city are being converted into “loft” condominiums. These units provide residents with a unique ambience, however, one of their key drawbacks is that they do not come with Tarion-backed builder warranties.    

The Ontario New Home Warranties Plan Act specifically limits warranty protection to newly built structures. Even though most conversions leave very little other than the shell of the original structure, these buildings and the units within them are not protected by new home warranty legislation.

The good news is that many loft-conversion builders provide their own warranties that are often very similar to the coverage guaranteed by Tarion, and DiLorenzo encourages her readers to look into the amount of coverage buyers will be eligible for in their converted loft residence.

Of course, if you’re considering a “loft-style” unit within a building that is entirely new, the warranty coverage is fully-backed by Tarion.

The important message of this article is that if you’re thinking about buying a condominium in a converted building, it can pay to do your warranty research before buying.