As of January 1, 2018, residential condominium conversion projects qualify for warranty coverage. The warranty applies to projects where the first Agreement of Purchase and Sale is signed on or after this date.
A residential condominium conversion project is when an existing non-residential building (warehouse, church, etc.) is converted into condominiums. In this type of project, pre-existing elements of the building, such as the foundation and frame, are incorporated into the new design and construction of the new building. Buildings that were originally built for residential use – like rental apartment buildings – would not qualify for coverage unless otherwise specifically permitted.
Condominium conversions benefit from the same seven-year warranty coverage as other new homes, with one exception: the pre-existing elements are not covered by the one-year warranty on workmanship and materials. This exception is because the pre-existing elements are often much older and cannot be certified in the same way as the new construction.
All other one-year warranty protections, including that the home meets Ontario Building Code regulations, would apply to both the pre-existing elements and the new components of the project.
When it comes to warranty protection beyond the first year, coverage would apply to both the new construction and the pre-existing elements. These include: the two-year warranty for water penetration and defects in work and materials in the electrical, plumbing and heating delivery and distribution systems; and the seven-year warranty for major structural defects.
Builder Registration Requirements
As a result of this change, builders of residential condominium conversion projects and vendors who wish to sell units in these projects must also be registered with Tarion. To determine if your builder is registered, visit our Ontario Builder Directory.