Conciliation is a process where Tarion assesses the items on a warranty form and decides whether they are covered under the warranty set out in the Ontario New Home Warranties Plan Act. Conciliation may also be used to assess:
- Whether Tarion agrees with the way a repair was done or offered to be done by the builder prior to conciliation; and/or
- Whether Tarion agrees that a settlement offer by the builder prior to conciliation is reasonable.
This page provides a general overview of the conciliation process, which is outlined in full detail (including exceptions to this general overview) in Registrar Bulletin 1.
A conciliation may include an in-person inspection at the home/common elements or a virtual inspection to which you are invited. The inspection is conducted by a Tarion Warranty Services Representative, who is an impartial decision maker.
During the conciliation inspection, the Tarion representative may ask questions, make observations, take photographs, or bring in a specialist to help with an investigation. All of this is to make sure Tarion has the information it needs to assess the items.
Your responsibilities before the conciliation inspection include the following:
- Continue to address and resolve warranty claim items;
- If items are in dispute, work with the homeowner/condominium corporation to reach a resolution; and,
- Provide Tarion with all documentation supporting your position on any non-warranted items, or any Exceptions to Chargeability outlined in Registrar Bulletin 4.
Your responsibilities during the conciliation inspection include the following:
- Explain why the condition of the item exists; and,
- Explain why the condition is not covered by the warranty or why it has not been resolved.
Conciliation Assessment Report
After Tarion completes its conciliation, we will send you and the homeowner/condominium corporation a copy of our Conciliation Assessment Report. The report will tell you whether the items we assessed are covered under the warranty and if so, need to be resolved by you.
If the report contains items that Tarion has determined are not covered by the warranty, you are not required to take any further action on those items.
If the report contains items that are covered by the warranty, you will have a final 30 days to resolve them in the case of freehold homes, or 90 days in the case of condominium common elements. If any of the warranted items remain outstanding at that time, Tarion will work with the homeowner or condominium corporation directly to resolve them and invoice you for the amount of the compensation or cost of work plus an administration fee of 15 per cent and applicable taxes.
Tarion may conduct a Claim Inspection at the home or common elements to determine if any of the warranted items remain outstanding. At the Claim Inspection, Tarion may consider:
- Whether Tarion agrees with the way a repair was done or offered to be done by the builder;
- Whether Tarion agrees that a settlement offer by the builder is reasonable; and/or
- What, if any, compensation or repair the owner is entitled to receive from the builder or Tarion.
Challenging a Tarion Assessment
If you disagree with the findings of a Tarion assessment – specifically whether an item is warranted or a conciliation is chargeable – you may be able to dispute the findings at the Builder Arbitration Forum (BAF).
The BAF is a contractual arbitration process to deal with warranty related disputes between builders and Tarion in a way that is impartial, timely, affordable and final.