Buyers of new homes in Ontario are protected by legislation in matters related to the construction of their new home. This article intends to highlight the applicable legislation governing the purchase of a new home in Ontario and some helpful information involving the purchase of your new home.
Ontario New Home Warranties Plan Act and Regulations
The Ontario government, through the Ministry of Consumer Services has given powers to Tarion Warranty Corporation to administer and enforce the Ontario New Home Warranties Plan Act and Regulations.
The Home Construction Regulatory Authority (HCRA)
Until February1, 2021, Tarion was responsible for both registration of builders and warranty administration. But now, as of February1, 2021, HCRA is responsible for new home builder and vendor licensing in Ontario. Under the New Home Construction Licensing Act, 2017 (NHCLA), new home builders and vendors in Ontario must be licensed by the HCRA to legally build or sell new homes in Ontario. Builders and vendors who were registered with Tarion are automatically transitioned to an HCRA license with the number remaining the same. Builders and vendors who are licensed by HCRA, must also receive confirmation of enrolment from Tarion to build or sell new homes in Ontario.
Updated Addendum
New Purchase Agreements signed on or after February 1, 2021, must have the updated Tarion Addendum attached.
Warranty Information Sheet
The Tarion Warranty Information Sheet includes details about a home buyer’s statutory warranty coverage, the new home Tarion warranty provided by the builder, the Pre-Delivery Inspection, and Deposit Protection. It comes in six versions:
1. Freehold
2. Condominium
3. Residential condominium conversion
4. Vacant land condominium
5. Contract homes
6. New home with a parcel of tied land
Effective February1, 2021, builders must attach the Warranty Information Sheet to every new home Agreement of Purchase and Sale, and Construction Contract with an owner at the time the document is signed.
Ontario Residential Condominium Buyers Guide
When buyers of residential pre-construction or new condo units purchase from a developer or a person acting on behalf of or for the benefit of a developer, effective January 1, 2021, the Ontario Residential Condominium Buyers Guide (Condo Guide) must be provided to them by the declarant (developer). The Condo Guide contains important information about condominium ownership and the condo purchase process, which serves the purchasers of resale residential condo units as well.
Condo Information Sheet
For new condominium projects with conditions resulting in possible cancellations, a Condo Information Sheet is mandatory for all pre-construction Agreements of Purchase and Sale. A Condo Information Sheet, completed and signed by the purchasers, acknowledging to have received and read the document, must be placed at the front of the Agreement of Purchase and Sale, with effect from January 1, 2021.
We hope to bring more helpful insights about buying your new home in future articles.
Note: This article is for general information purposes only. The contents of this article are not legal advice or opinion and should not be relied upon as such. YFLaw Professional Corporation owns the copyright to this article and its contents. The article and its contents are not to be copied or reproduced in any form, in whole or in part, without the express permission of YFLaw Professional Corporation.
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