Tarion Warranty Corporation has announced two major changes meant to contribute to enhanced consumer protection and better transparency.
First, Tarion has introduced new delayed closing and delayed occupancy addenda forms that have to be attached to every purchase agreement as of October 1, 2012. The new forms could also be used optionally as of July 1, 2012.
It is expected that the changes will make it easier for the buyer to navigate some of the complicated documentation involved in the process of home buying. For example, now all adjustments to a new home’s purchase price must be located in a single schedule attached to the agreement of purchase and sale. The new rules will also allow more flexibility for changing critical dates by mutual agreement. Finally, a new form has been created for new homes on freehold parcels of land that are tied to common elements corporations. All the new and revised forms can be found on Tarion’s website.
The second change deals with the Major Structural Defect (MSD) warranty that applies to new homes sold on or after July 1, 2012.
Under the new rules, Tarion has extended builder/vendor accountability for MSD throughout the full seven year warranty period. Earlier, builders were directly responsible for valid MSD claims made within the first two years from the warranty start date and Tarion carried responsibility for valid MSD claims made between years three through seven. The changes also expand on the existing definition of MSD and set out a detailed MSD claims process. See Builder Bulletin 24 for more details.