The Warranty Service Rules

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Deposit Protection

Warranty Coverage

Understanding Delayed Closings and Occupancies

Unauthorized Substitutions

How the Statutory Warranty Works

Appealing A Decision

Exceptions to the Statutory Warranty Process

What's Excluded

Warranty Fees

The Warranty Service Rules

For all freehold homes and condominium units with a date of possession on or after October 1, 2003 and before September 1, 2005

The following rules apply for the handling of requests for warranty service that are properly submitted on a standard Warranty Service Form. Please note, a homeowner's request must contain at least one warrantable item.

The rules for requests during years one and two

For all Warranty Service Forms submitted (except the Year End form), including the Delayed Closing/Occupany Forms for homes with a date of possession between October 1, 2003 and May 1, 2004 inclusive, the builder has a maximum of 120 days after the date Tarion receives the form to repair or otherwise resolve the claim. Tarion will confirm the submission of the form once it has been received and processed.

For the Year-End Form, the builder has a maximum of 120 days from the start date (see Requests during year one for details) to repair or otherwise correct items covered by the warranty. Tarion will confirm the submission of the form once it has been received and processed.
If for any reason the builder does not complete the repairs or resolve the claim to the homeowner's satisfaction by the end of the120-day period, the homeowner has 30 days to contact Tarion and request that we schedule a conciliation inspection. If the homeowner does not do so, all the items listed on the Warranty Service Form will be considered resolved and the matter closed. (Note that homeowners may resubmit the item(s) at a later date if the warranty covering the item(s) is still in effect.)
The builder then has 30 days from the day the request for a conciliation inspection was made to complete the corrections to the remaining items described on the Warranty Service Form.
If the repairs are not completed, or if the claim is not resolved, by the end of those 30 days, Tarion will conduct the conciliation inspection* with both the homeowner (or their designate) and one of the builder�s representatives present, and will send out a report within 10 days. The report will outline which outstanding items the builder must resolve under the terms of the warranty, and the builder will have 30 days following the date of the report to do so.
Tarion will contact the homeowner 30 days after the date of the report to confirm that the builder has compensated the homeowner or corrected all the items listed in the report. If the items have not been corrected, we will work with the homeowner directly to settle the matter.

Homeowners should allow the builder�s representatives and/or subcontractors (also known as �trades�) access to their home during regular business hours, at a mutually acceptable time arranged in advance, in order to complete the necessary work. Failure to do so will jeopardize the homeowner's warranty rights.

The rules for requests during years three through seven

During years three through seven, Tarion will schedule and conduct an inspection, and issue a decision to the homeowner within 10 days of the date we received their MSD Form. If the item is found to be covered by the warranty, we will settle the claim directly with the homeowner.

Common Elements

Condominium unit owners should notify the condominium corporation�s Board of Directors to report damage or defects in the common elements so that the Board can decide what action to take under the common elements warranty. Also note that the Warranty Service Rules do not apply to the common elements of a condominium project.

Delayed Closing/Delayed Occupancy Claims

Please note that purchasers are encouraged to attempt to resolve delayed closing/occupancy claims directly with their builder.

These rules apply to homes with a date of possession on or after May 1, 2004:

� The purchaser will have one year from the date of possession, or from the date of �occupancy closing� in condominium units, to submit to both Tarion and the builder, and complete Delayed Closing/Occupancy Form with copies of all documents required in that Form. This Form can be obtained by contacting Tarion.

� Only one complete Delayed Closing/Occupancy Form will be accepted.

� If by day 30 following submission of Delayed Closing/Occupancy Form, the builder has not compensated the purchaser, or otherwise resolved the claim, the purchaser may contact Tarion to request a conciliation inspection between day 31 and 60 following submission of the Form.

� The purchaser will be charged a $50 conciliation fee when the assessment is requested, but the fee will be refunded if the delayed closing/occupancy claim is determined to be valid.

� If the purchaser does not request a conciliation inspection during this period, the claim will be considered resolved and the matter closed.

� The builder has a further 30 days from the date the purchaser requests a conciliation inspection to compensate the purchaser, or otherwise resolve the claim.

� If the purchaser notifies Tarion that the claim has not been resolved by the end of the 30 days, Tarion will conduct a conciliation inspection and issue a report to the purchaser and to the builder within 10 days of the receipt of notice after the expiry of the 30-day period.

� An administrative fee of $600 payable by cheque, money order, or other approved payment method, will be charged to the builder if Tarion determines, after conducting the conciliation inspection, that the claim is valid. This fee will serve to offset the administrative costs incurred by Tarion in processing delayed closing/occupancy claims.

� If Tarion determines that the claim is valid, the conciliation inspection will be considered to be �chargeable� to the builder, and will be noted against the builder�s record with Tarion.

� Tarion will settle directly with the purchaser if the builder does not resolve the claim within 30 days from the date when Tarion issues the Warranty Assessment Report.

Exceptions to the Warranty Service Rules

There are several specific situations � including emergencies � where the timelines set out in the Warranty Service Rules may not apply. Please review the full list of these exceptions for details.

* Homeowners who request a conciliation inspection will be asked pay a $50 fee . If any of the items on the Warranty Service Form are found to be covered by the statutory warranty, this fee will be refunded. Tarion Warranty Corporation (�Tarion�) does not permit the video or audio recording of the conciliation or claim inspection process by builders or homeowners. Photographs, however, may be used to document any physical defects in a home which may eventually become the subject of an inspection.The video or audio recording of a conciliation or claim inspection is not necessary for the inspection process to proceed properly and fairly. In Tarion�s experience, video and audio recordings have only served to interfere with the process. A video or audio recording of the conciliation or claim inspection process is also not necessary or of assistance in making an assessment of any construction deficiencies. When the results of a conciliation or claim inspection are reviewed by the Licence Appeal Tribunal, the assessment is typically made based on live testimony and documentary evidence. A homeowner who insists on making a video or audio recording of an inspection and refuses to allow an inspection to proceed without making a video or audio recording, will prejudice his/her warranty rights. Where a builder refuses to participate in an inspection without making a video or audio recording, the inspection will be conducted without the builder�s participation. The builder may also prejudice, among other things, the builder�s appeal rights before the Builder Arbitration Forum, and the builder�s rights under the Waiver of Indemnity policy (Builder Bulletin 44).