Members should be aware of changes to new home warranty coverage in Ontario that came into effect on July 1, 2023, and will apply to homeowners who enter into a purchase agreement on, or after, that date.

Warranty Limits

Warranty Compensation Limit has been increased from $300,000 (current) to $400,000. This change applies to freehold homes in which the homeowner owns the land and the home, such as detached, semi-detached homes and some townhouses. The warranty compensation limit for condominium units will not increase, as those homes already benefit from additional coverage under the builder’s Common Elements warranty.

Temporary Relocation Warranty – Registrars Bulletin #7

The new Temporary Relocation Warranty of $150/day - up to a maximum of $15,000 - will help cover costs homeowners may have to pay associated with temporary accommodations. This coverage for both condominium and freehold homeowners applies if a warranted repair renders the home uninhabitable and they are required to relocate while repairs or remediation is completed. Full details can be found in the new Registrar Bulletin 7.

Changes to the Customer Service Standard

Tarion is also making changes to the Customer Service Standard (CSS). Following the implementation of interim measures in September 2020, Tarion has now made regulatory changes to the Customer Service Standard, effective July 1, 2023, by:

• Creating a new requirement that Tarion must schedule a conciliation inspection within 15 days of the request being made and make changes to the current timeline requirements for conducting the conciliation inspection and issuing the conciliation assessment report.

The following changes will take effect for homebuyers who have a date of possession on or after May 1, 2024:

• Extending the initial homeowner submission period by 10 days (now 40 days).
• Making the interim 10-day grace period at the end of the first-year warranty period permanent.
• Creating a mid-year submission at six months.
• Allowing homeowners to add items to a running list of potential defects at any time during the first-year warranty period.
• Expanding when homeowners can ask for a conciliation inspection during the first-year warranty period by removing the 30-day timeline for a homeowner to request a conciliation and instead allowing them to request a conciliation for each submission from the time it is submitted up until the next submission date.

Additional information will be provided in advance of the May 1, 2024, in-effect date. For more information on these new measures, please view the backgrounder here.