Toronto, Ontario (March 12, 2008) – Tarion Warranty Corporation (“Tarion”) announced today that effective
July 1, 2008, Ontario consumers who purchase a new home or condominium unit will benefit from the most comprehensive warranty protection against delays in closing or occupancy that is available anywhere in Canada.

The new warranty provisions have established precedent-setting disclosure requirements for all Agreements of Purchase & Sale for new homes, together with new standards for notifying purchasers in the event of any potential delays in taking possession of their new home.  In addition, the new Regulations will provide the highest amount of compensation available in Canada to consumers who experience a delay in the closing of the purchase of their new home.  These new policies will also help new home buyers to have a better understanding of the potential for delay that could arise in different circumstances when shopping for a new home.

“Recent surveys have shown that many purchasers of new homes in Ontario have experienced a delay in the occupancy or possession date for their new home.  These delays can lead to frustrations for new home buyers who are looking forward to moving into their new home,” said Greg Gee, Tarion President and CEO.

Among the benefits to new home buyers of the new home warranty provisions are:

• A new standard form information statement will be required in every Agreement of Purchase & Sale for a new home (known as “the Addendum”), which will outline for consumers the closing details in clear language, including disclosure of critical information about the current status of the property being purchased;
• The Addendum will feature a cover page that lists each important date related to a home’s closing or occupancy;
  
• Builders will be required to disclose key information at the time of purchase, such as when construction is scheduled to start, whether a building permit has been issued, whether sewer and water services are currently available, as well as any conditions precedent that must be met in order to complete the contract.  This information will assist consumers to better understand whether a delay in closing is probable, and will assist consumers to manage their own affairs, including the timing of the sale of their current home; and
  
• A 50 percent increase in compensation for home buyers who experience a legitimate delay in closing, raising total compensation to $7,500.00 from $5,000.00.

The new Delayed Closing warranty came about as a result of extensive work by a Special Committee on Delayed Closings organized by Tarion in early 2006, and chaired by former Supreme Court Justice Frank Iacobucci.  The Special Committee was comprised of 12 members representing consumers, land developers and highly-respected builders of freehold and condominium homes.  The Report of the Special Committee contained detailed recommendations covering all aspects of the Delayed Closing warranty, including rules and procedures.  Tarion is currently providing training for all home builders across Ontario to ensure a smooth rollout of the new policies.

“The new rules governing delayed closings will give Ontario the most extensive warranty coverage regarding delayed closings that is available anywhere in Canada,” said Mr. Gee.  “These policies also represent important progress in improving the warranty protection available to new home buyers in Ontario.”

Prior to July 1, 2008, consumers interested in learning more about Tarion’s delayed closing policies should:

• Visit Tarion’s website which will have a special section explaining the policies together with an interactive web-based calculator that will allow new home buyers to determine important dates related to their home’s closing;
  
• Attend one of Tarion’s Seminars for New Home Buyers which take place regularly in Toronto, Ottawa and London, Ontario;
  
• Order a copy of a new brochure explaining the new policies that will be available from Tarion prior to the effective date of the new Regulations; and,
  
• Read the Homeowner Information Package which all builders in Ontario must provide to homeowners, as it will include an updated explanation of the new delayed closing warranty.

Tarion Warranty Corporation is a private corporation established in 1976 to serve as the Regulator of the home building industry in Ontario.  In this role, Tarion licenses all home and condominium builders pursuant to provincial legislation.  This statute requires Ontario home builders to provide every purchaser with warranty coverage that is guaranteed by Tarion.  The Corporation also establishes minimum time standards for after-sales service, and adjudicates warranty issues between homeowners and builders.

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For additional information, please contact:

Corinne Smirle
Senior Manager, Corporate Communications
Email: corinne.smirle@tarion.com