• About Header

    About

Collections Reporting

Under the Ontario New Home Warranties Plan Act, vendors/builders are responsible for addressing warranted defects in the homes that they build. In cases where a vendor/builder does not or is unable to fulfill their warranty obligations, Tarion will resolve warranty claims directly with the homeowner. This may involve contracting with a third party to complete the repairs or providing the homeowner with cash settlement. 

In cases wherein Tarion incurs losses as a result of investigating and/or resolving the warranty claims, Tarion will seek to recover the costs from the vendor/builder. The recovery table below shows the recovery rates by vendor/builder registration status for the current year, and the average over the last 5 years. 

How to interpret this table:

Recovery rates will be reported based on 12 months of claims paid over 18 months of recovery effort elapse time because it can take time to pursue the recovery of these costs. For example, Q2 2020 reporting will evaluate claims paid from January 1, 2019 – December 31, 2019 with a recovery period from January 1, 2019 - June 2020. On a quarterly basis, the time period segments will roll forward accordingly. 

The recovery rates on claims paid are grouped into three categories based on the vendor/builder’s registration status as at the time of claim payment:

  1. Registered
  2. Expired
  3. Unregistered

Tarion - Recovery Rates by License Status

Vendor/Builder
License Status
Q2 2020 Q3 2020 Q4 2020 Q1 2021 Benchmark
Registered 41.7% 41.9% 38.2% 28.7% 43.9%
Expired 50.3% 29.6% 25.3% 24.8% 47.2%
Unregistered 18.9% 18.9% 24.8% 23.5% 19.2%
Total 36.8% 30.8% 29.4% 26.1% 33.5%

 

 

 

 

 

Notes:

  1. Recovery rate measures 12 months of claims over 18 months of recovery elapsed time.
  2. Benchmark based on 2015-2019.
  3. MSD - Tarion responsible claims are excluded from calculation.
  

share