(NC) In Ontario, you may not know that a newly built home that’s seven years old or less may come with a warranty.
This includes condominiums, houses, and even converted condos.
Here are five ways that your new home purchase is protected:
1. Your deposit is protected If you’ve put down a deposit at the time you signed the purchase agreement, your money is protected if something unexpected happens. If the home’s purchase price is $600,000 or less, you’re covered for up to $60,000; if it’s over $600,000 then you’re protected up to 10 per cent of the purchase price to a maximum of $100,000. If you purchased a condominium, your deposit is put in trust by the builder and if something happens to this money, you have protection up to $20,000.
2. Delay coverage Your builder must provide a closing date (or occupancy date for condos) when your home will be move-in ready. If they don’t meet or properly extend the date, you may be entitled to compensation.
3. One-year warranty In the first year, your warranty covers defects in work and material throughout your new home, this would include things like peeling paint and leaky faucets. It also protects against unauthorized substitutions in finishings and against Ontario Building
Code (OBC) violations.
4. Two-year warranty In your home’s second year, the two-year warranty covers water penetration, defects in materials and workmanship affecting things like doors, windows, and exterior items like brickwork, electrical, plumbing, and heating and venting systems, and OBC violations that affect health and safety.
5. Seven-year warranty Once your home is more than two years old but less than seven, you’re covered against major structural defects that impact a load-bearing part of your home such as foundation walls.
Find more information at Tarion.com.