• Homeowners_HERO

    Homeowners

How the Warranty Works: One-Year Warranty Examples

Example 1: Water accumulating on top of the porch

Step 1 – Claim submission & description: The owner files a year-end form stating that water was accumulating and not draining on the flat roof on top of the porch.  This is an apparently unacceptable condition, so the owner met their onus at this stage.

Step 2 – Builder repair period: The builder does not do any repairs, taking the position that, since there is no water penetrating into the interior of the home, the condition is acceptable and no repairs are needed.

Step 3 – Request for conciliation: The owner requests conciliation.

Step 4 – Claim assessment: Tarion refers to Article 5.19 of the Construction Performance Guidelines, which provides that flat roofs shall be installed to drain water (unless the roof is designed for water retention).  Tarion hires a contractor to assess the roof and the contractor finds that there are no drainage measures in place.  Tarion concludes that there is a warranted defect.

Step 5 – Claim inspection: Builder does not resolve the claim in the post-conciliation period, so Tarion steps in to resolve the issue with the owner.  Tarion hires a consultant to assist in preparing a scope of work and quote for the necessary repairs.

Step 6 – Compensation from Guarantee Fund: Damages are evident in this case.  Tarion considers all of the other issues and concludes that the owner is entitled to compensation for the cost to install the missing drainage measures.


Example 2: Hardwood floor cupping 

Step 1 – Claim submission & description: The owner files a year-end form stating that the hardwood flooring in the kitchen is squeaking and creaking when stepped on.  This is an apparently unacceptable condition, so the owner met their onus at this stage.

Step 2 – Builder repair period: The builder does not do any repairs, taking the position that the condition is due to the homeowner not maintaining a proper humidity level in the home.

Step 3 – Request for conciliation: The owner requests conciliation.

Step 4 – Claim assessment: Tarion refers to Article 12.21 and Appendix 2 of the Construction Performance Guidelines, which provide that cupping caused by improper maintenance of humidity levels is excluded from warranty coverage.  Relative humidity levels should be 30-50%.  The builder provides several humidity readings taken throughout the builder repair period showing over 65% humidity in the home.  The homeowner does not provide any evidence to the contrary.  Tarion concludes that the defect (cupping) is caused by lack of homeowner maintenance and therefore, excluded from warranty coverage.

Step 5 – Claim inspection & Step 6 – Compensation from Guarantee Fund: Since the items are not warranted, these steps are not required.  

If the owner wishes to challenge the warranty assessment, they may escalate to a manager, request a mediation or a Decision Letter to appeal to the Licence Appeal Tribunal.
 

Example 3: Unauthorized substitution

Step 1 – Claim submission & description: The owner files a year-end form stating that the builder substituted a pedestal sink instead of providing the sink with cabinets that was listed in the APS.

Step 2 – Builder repair period: The builder takes no action.  Their position is that they are allowed to make substitutions to items listed in their features sheet.

Step 3 – Request for conciliation: The owner requests conciliation.

Step 4 – Claim assessment: Tarion reviews the APS and notes that the sink with cabinets in the main floor powder room is referred to in the features sheet.  Because it is an item “referred to” in the APS and not actually selected by the homeowner, the builder can make substitutions so long as the substituted item is of “equal or better quality” to the item referred to in the APS.

Tarion’s assessment is that the pedestal sink, although of similar cost and size to the sink with the cabinets, is of inferior quality since it does not provide any storage.

Step 5 – Claim inspection: The builder and homeowner agree to the appropriate amount of compensation and resolve the issue within the post-conciliation period without Tarion’s involvement.  Therefore, this step (claim inspection) and the next (Step 6 – Compensation from Guarantee Fund), are not required.

    

share