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Alternative methods for resolving claims

Below is an overview of each alternative option you have for resolving claims, including when you are able to request it. 
Continue scrolling to find more information on each of these options.

Early Intervention

Requested if communication between the homeowner & builder has broken down, or if one of the two parties are not acting in good faith.


When to Request it:
Before making a claim, or any time during the regular claims process.

Investigative Inspection

Assessment of a warranty claim item to determine whether the item involves health & safety, an emergency, or extraordinary circumstance that require immediate attention.


When to Request it:
Before or after submitting a form.

Independent Mediation

An independent way to dispute Tarion’s warranty assessments through an easy & cost-effective process than a formal hearing at the Licence Appeal Tribunal.

When to Request it:
After conciliation & Tarion Assessment
 

Arbitration/Litigation

Pursue a home warranty dispute in the court system which is a unilateral process that you can initiate, or through private arbitration requires that all parties agree to the process.

When to Request it:
After completing the regular claims process.
 

License Appeal Tribunal

An independent agency established by the Ontario government that, among other things, resolves disputes related to Tarion. 

When to Request it:
If you disagree with an assessment in a conciliation assessment report & after reviewing & deciding to challenge a Tarion decision Letter.
 

Early Intervention

Tarion’s Early Intervention process is designed for situations where the relationship between the homeowner and builder has become strained and/or the complexity of the issues make the warranty process difficult.

Early Intervention

 

Investigative Inspection

At the Investigative Inspection, Tarion will assess a warranty claim item to determine whether the item involves health and safety, an emergency, or other extraordinary circumstance that requires immediate attention.

Investigative Inspection


 

Independent Mediation

If a homeowner disputes a warranty assessment by Tarion relating to defects in their home or unit, they can request independent mediation as an option to help to resolve their warranty claim dispute. Mediations with a homeowner are only available for issues with warranty assessments and are not used for issues related to deposit protection, financial loss, or delayed occupancy/delayed closing claims.

For Condominium Corporations
Additionally, as of July 1, 2021, Tarion will be starting to offer independent meditation for condominium corporations for concerns related to common element warranty claims. More details on the mediation process relating to common element claims will be provided after July 1, 2021.

The objective of Independent Mediation

The objective of mediation is to find ways to resolve warranty disputes without having to go through a formal hearing process at the Licence Appeal Tribunal or court. This type of mediation is now covered by a provincial regulation, which is in effect on July 1, 2021. More information can be found here. 

Roles & Responsibilities during this time

This type of mediation is between the homeowner and Tarion only. It does not involve the builder unless both Tarion and the homeowner agree that the builder may be invited to participate. The builder is not required to attend.

Mediation is conducted by an independent, external mediator. The homeowner and Tarion need to jointly appoint a qualified person to act as a mediator to the warranty claim dispute. Everyone involved in the mediation process is required to comply with confidentiality obligations that are established in the mediation regulation.
 

For Condo Corporations
Additionally, as of July 1, 2021, Tarion will be starting to offer independent meditation for condominium corporations for concerns related to common element warranty claims. 

How does a homeowner initiate mediation with Tarion

Generally, a homeowner can submit a request for mediation to Tarion if:

  1. The homeowner has requested a conciliation inspection for a disputed item(s) between a homeowner and a vendor/builder.
  2. Tarion has provided the homeowner an assessment from the conciliation which rejects at least one part of the claim.
  3. Tarion has not yet issued a decision letter for the claim.

There may be other considerations or instances where Tarion feels mediation might offer a possible resolution to a homeowner’s concerns.

Costs & fees of Independent Mediation

Before mediation starts, the homeowner and Tarion need to determine the costs of mediation for which they are each responsible. The costs of mediation are the fees and expenses of the mediator and the cost of facilities to host the mediation, if there is any.

Tarion is responsible for paying at least half of the costs of mediation, or the rate posted below, whichever is greater. The homeowner is responsible for the rest. The homeowner and Tarion can also share the costs differently, as long as they both agree.

Tarion is willing to cover the costs of mediation at the standard rate below. As a result, Tarion does not anticipate any costs for the homeowner.

Currently, Tarion is willing to pay the following amount toward the cost of mediation:

  • $1,500 for each half-day of mediation
  • $3,000 for each full-day of mediation

Generally, if a homeowner chooses a mediator who charges more than the standard rate noted above, then the homeowner will be responsible for the rest.

Independent mediation with Tarion is generally conducted without builders present and the cost of the mediation (namely, the fees and expenses of the mediator and the cost of facilities to host the mediation, if there is any) will not be charged back to the builder. If the homeowner and Tarion agree, a builder may be invited to attend the mediation. However, the builder is not required to attend.

If Tarion reverses its warranty assessment (i.e. not warranted to warranted) based on new information, or Tarion conducts a further investigation that could result in a change to a warranty finding, then the builder may be asked to resolve the issue.


 

How to choose a mediator

Tarion can send a homeowner a list of qualified mediators who have experience in Tarion matters.

Homeowners can select a mediator from this list or put forward someone else who has the required experience, training, or education in mediation. The Alternative Dispute Resolution Institute of Ontario is a useful resource to help you find a qualified mediator. You can visit their website here.

For a mediation to commence, both the homeowner and Tarion must agree on the chosen mediator.

When does mediation happen and how to prepare

When you have decided on a mediator, Tarion will schedule the mediation at a mutually agreeable date and time. Every effort will be made to schedule the mediation at the earliest opportunity.

Before the mediation date, the mediator will send you a mediation agreement. The mediation agreement will outline the process and any information and/or documentation the mediator would like you to provide. Note that this mediation agreement is different from a settlement agreement reached at mediation.

Other things you may consider in advance include:

  • Whether there is any additional information and/or documentation that you would like to provide Tarion;
  • Whether you believe something was overlooked or not considered in Tarion’s assessment; and,
  • Whether there is any information you have which will help Tarion understand the resolution you are seeking.
What to do if mediation does not resolve the issue(s)

If mediation is unsuccessful and no agreement is reached, you still have the right to resume your claim with Tarion, including requesting a decision letter with the right to appeal to the Licence Appeal Tribunal or court.

What happens at the mediation

In consultation with the homeowner, the mediation will be scheduled for a half day or full day, depending on the number and complexity of the issues involved. A mediation may be held in-person, or by teleconference, videoconference, email or other electronic means.

Mediation is an informal, private, and confidential meeting that involves you, a Tarion representative, and the mediator. This process is meant to provide an alternative to a formal, legal proceeding. The goal of mediation is for the homeowner and Tarion to negotiate and resolve the warranty claim dispute.

Arbitration/Litigation

You can pursue your home warranty dispute in the court system or through private arbitration. A legal action in the courts is a unilateral process that you can initiate. In contrast, private arbitration requires that all parties agree to the arbitration process. 
If you are interested in these options, it is worth speaking with a lawyer as soon as possible in order to avoid statutes of limitations that may prevent you from starting litigation after a certain amount of time has expired. 

While it is not necessary to have legal representation, it is strongly recommended.

The Law Society of Ontario’s Referral Service can help you find a lawyer or paralegal. Visit their website at https://lsrs.lso.ca/lsrs/welcome.

What to Expect from Tarion
Tarion strives for the highest ethical and professional standards in dispute resolution proceedings. Click here to learn more about our dispute resolution guidelines.

 

Licence Appeal Tribunal

The Licence Appeal Tribunal (LAT) is an independent agency established by the Ontario government that, among other things, resolves disputes related to Tarion. Under the Ontario New Home Warranties Plan Act, LAT has the power to change a Tarion warranty decision.

Tarion strives for the highest ethical and professional standards in dispute resolution proceedings. Click here to learn more about our dispute resolution guidelines.

How to make an appeal

If you disagree with an assessment in a Conciliation Assessment Report, contact Tarion to request a Decision Letter. The Decision Letter will provide reasons for the warranty assessments that you wish to challenge.

Next, you must file a Notice of Appeal and pay a filing fee to LAT within 30 days from receiving the Decision Letter. 

For more information on how to file a Notice of Appeal, visit LAT’s website.

What happens after you make an appeal

After you file the Notice of Appeal, LAT will schedule a case conference between you, Tarion, and a case conference adjudicator from LAT.  The case conference is conducted by conference call, not in person.

The goal of the case conference is to determine the issues in dispute, try and settle some or all of those issues and, if the appeal does not settle, set a hearing date and the procedural steps required before the hearing.

How to prepare for the case conference
  • Review the Decision Letter to ensure the issues/items under appeal are accurate 
  • Be prepared to speak briefly to each item in the Decision Letter. What do you think is wrong with the item, why do you disagree with Tarion’s decision, and what solution are you looking for?
  • Gather any repair quotes or reports that you might already have for the items in dispute
  • Consider how many witnesses you might want to call at the hearing so LAT can estimate the time required for the hearing
  • If you wish to engage in a settlement discussion, consider what sort of solution you want, and which items in the Decision Letter are most important to you 
What happens during a hearing

An in-person hearing is like an informal court trial led by an adjudicator assigned by LAT.

The adjudicator begins by giving an introduction, and possibly an overview of the process. You and Tarion will then have a chance to make an opening statement.  Your opening statement is typically a non-argumentative overview of the evidence you plan to present. 

After opening statements, you and Tarion take turns calling witnesses to give oral testimony and introduce documentary evidence. Witnesses may be questioned up to three times:

  • first by the person who called the witness to the hearing; 
  • second by the other party, who may want to cross-examine the witness; and, 
  • possibly a third time by the original person for a re-examination. 

After witnesses you, followed by Tarion, will make closing statements.  This is your opportunity to argue your case to the adjudicator based on the evidence at the hearing and the relevant law. After Tarion’s closing statement, you’ll have an opportunity to reply to Tarion's position.

The adjudicator may ask you or your witnesses questions, and may modify the procedure of the hearing as necessary. 

How to prepare for a hearing

Three important things to think about before your hearing are:

  1. Evidence that supports your position, including pictures/videos of defects, your purchase agreement, expert reports, repair quotes, experts with opinions about the defects, and non-experts who have made observations.
  2. The laws and standards that apply to the warranty items under appeal.  This includes previous court or LAT cases with similar issues, warranty coverage set out in the Ontario New Home Warranties Plan Act, the standards set out in the Construction Performance Guidelines, any applicable industry or manufacturer guidelines, and the requirements in the Ontario Building Code.
  3. How the appeal process will be conducted.  Review LAT’s Rules of Practice and Procedure, which are available on its website.

LAT’s website has resources to help you prepare for a hearing on the topics of evidence, disclosure, and witnesses. It will also direct you to www.CanLii.org, a public and free legal research tool that you can use to research previous LAT decisions. 

What to expect from Tarion during this process

Tarion strives for the highest ethical and professional standards in dispute resolution proceedings. Learn more through our guide on dispute resolution.