Tarion Warranty Corporation announced that effective July 1, 2008, Ontario consumers who purchase a new home or condominium unit will benefit from the most comprehensive warranty protection against delays in closing or occupancy that is available anywhere in Canada.
Among the benefits to new home buyers of the new home warranty provisions are:
- A new standard form information statement will be required in every Agreement of Purchase & Sale for a new home (known as “the Addendum”), which will outline for consumers the closing details in clear language, including disclosure of critical information about the current status of the property being purchased;
- The Addendum will feature a cover page that lists each important date related to a home’s closing or occupancy;
- Builders will be required to disclose key information at the time of purchase, such as when construction is scheduled to start, whether a building permit has been issued, whether sewer and water services are currently available, as well as any conditions precedent that must be met in order to complete the contract. This information will assist consumers to better understand whether a delay in closing is probable, and will assist consumers to manage their own affairs, including the timing of the sale of their current home; and
- A 50 percent increase in compensation for home buyers who experience a legitimate delay in closing, raising total compensation to $7,500.00 from $5,000.00
