Summary of Proposal:
On October 30, 2019, the Auditor General of Ontario released the Special Audit of Tarion Warranty Corporation.
Tarion is committed to building a more transparent, fair and accountable new home warranty and protection program and has made it a priority to implement the recommendations from the Auditor General’s report in a timely manner. To view Tarion’s plan to implement the recommendations, please see here.
At this time, Tarion is seeking input from stakeholders and the public on the following recommendations:
- Establishing new rules and processes to help homeowners better understand the importance of the Pre-Delivery Inspection;
- Clarifying information on new home warranties and homeowners’ rights in the Homeowner Information Package;
- Changing the Customer Service Standard to improve homeowners’ ability to seek assistance from Tarion;
- Establishing new rules for the timely Tarion resolution of homeowners’ disputes with builders;
- Establishing a timely and cost-effective Tarion mediation process for homeowners;
- Requiring builders to provide Tarion with title information for high-risk proposed condominium construction projects and to disclose restrictions that could cause delay or cancellation of the project;
- Implementing a risk-based inspection process to proactively identify potential; deficiencies during construction, including those related to the Ontario Building Code during construction; and
- Improving the Ontario Builder Directory to include additional information about builders.
Tarion is also seeking input on the warranty compensation caps on claims related to environmentally harmful substances or hazards, septic systems and condominium common elements and providing compensation to homeowners in instances where they have to relocate while repairs are underway which arose from a warranted item.
Tarion welcomes feedback and encourages anyone interested to provide comments. For information on the proposed improvements, please view the Q&A available here. You may submit your comments to the Ontario Regulatory Registry or to submissions@Tarion.com by August 24, 2020.
Further Information can be found within our discussion guide.