TORONTO, Ontario (October 11, 2006) – Tarion Warranty Corporation (“Tarion”) today released a report of the Special Committee on Delayed Closings. The Special Committee was formed earlier this year to review and recommend improvements to the delayed closing provisions of the Ontario New Home Warranties Plan Act and Regulations.
The review of delayed closings by Tarion was requested by Gerry Phillips, Minister of Government Services, in response to concerns raised in the media, in consumer research and by new home purchasers. Tarion formed the Special Committee in March 2006 with a mandate to ensure purchasers are protected from undue delays in the completion of residential homes and compensated when delays do occur.
“The recommended changes address concerns that the current provisions do not give consumers sufficient clarity and certainty about the process and governing rules,” said Tarion President and CEO Greg Gee. “The proposed new regime spells out in clear language the rights and responsibilities of builders and consumers with respect to delayed closings. It provides clarity, transparency, fairness and balance between the needs of new home purchasers and builders.”
Chaired by former Supreme Court Justice Frank Iacobucci, the Committee was comprised of 12 experts representing a cross section of builders of various sizes from across the province, as well as land developers, condominium law experts and consumers. “The proposed regime is the product of long and considered effort by some of the most pre-eminent industry representatives and stakeholders,” said Mr. Iacobucci. “The recommendations are a consensus of the views of panel members. They constitute an update of the entire delayed closing regime.”
The recommendations include standard rules for notice periods and extensions, improved disclosure of key dates and milestones, clarity on permissible delays and methods for changing closing dates and improved compensation for delays.
Tarion’s Board of Directors approved the Committee’s report in principle at its September meeting, subject to consideration of additional comments that may be submitted by representative stakeholder groups. The Committee will review written submissions from these stakeholder groups received by November 17, 2006. For more information about the Report or how to submit a comment through one of Tarion’s stakeholder groups, visit www.tarion.com.
“We believe the current delayed closing regime would be improved substantially by these recommendations,” said Mr. Gee. “The proposed changes would give Ontario the most sophisticated and modern regime for delayed closings in Canada.” The new regulations, if approved, are not expected to take effect before the fall of 2007. In the interim, Tarion is committed to ensuring that any changes in the delayed closing regulations are communicated to both builders and consumers well in advance of their implementation.
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:
Janice Wong, Senior Manager, Corporate Communications
Tarion Warranty Corporation
Phone: 416-229-3863
E-mail: janice.wong@tarion.com
