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How the Warranty Works: Seven-Year Warranty Examples

Example 1: Excessive cracks, crooked doorways, floors out of level

Step 1 – Claim submission & description: The owner files a Major Structural Defect Form, reporting cracks in the drywall, crooked doorways and flooring that is not level.  They note that these conditions have been worsening over time. These are apparently unacceptable conditions, so the owner has met their onus at this stage.

Step 2 – Builder repair period: The builder repairs the cracks but they reappear.  The builder does not attend to the other issues.

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

Step 4 – Claim assessment: Based on the symptoms, Tarion is concerned about the quality of the soil that the home is built on.  Tarion puts the issues “under investigation” and hires a consultant to perform  a geotechnical assessment, including monitoring and testing of the home over the next six months.

The consultant’s report concludes that the home is sinking due to faulty soils.  Tarion assesses the item as a major structural defect    

Step 5 – Claim inspection: The builder has not resolved the issue.  Tarion retains a consultant to assist in establishing a scope of work for repairs.  The recommended repairs are installation of helical piles.    

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 helical piles. 

Example 2: Basement water penetration

Step 1 – Claim submission & description: The owner files a Major Structural Defect form, reporting that there is a large crack in the foundation wall and that there was water coming into the basement from this crack.  This is an apparently unacceptable condition, so the owner has met their onus at this stage.

Step 2 – Builder repair period: The builder investigates but does not do repairs, taking the position that it is a normal shrinkage crack.  

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

Step 4 – Claim assessment: Tarion observes the crack and notes that there is no displacement or deformation of the wall around the crack or widening of the crack along its length.  Tarion gathers information from the homeowner regarding the water penetration.  The homeowner reports that there was a single incident of water leaking into the basement.  It is a finished space where her sister is currently living.  She has since moved upstairs as she is afraid of further leaking.

Tarion concludes that there are no signs of a structural issue.  The single incident of water penetration does not qualify as a “major structural defect” since it doesn’t materially affect the use of a significant portion of the building.  In other words, even though the sister has chosen to move upstairs, the evidence does not support the conclusion that she cannot live there.

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 assessments, they may escalate to a manager, request a mediation or a Decision Letter to appeal to the Licence Appeal Tribunal.

    

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