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In this episode, the hosts Geeta, Rajiv and Nick discuss the Tarion Warranty, a mandatory warranty that protects new home buyers in Ontario. They cover topics such as deposit protection, delayed closing and occupancy protections, and the importance of the Pre-Delivery Inspection (PDI) form. They also discuss common misconceptions about the Tarion Warranty and emphasize the importance of documenting findings in the PDI form. Throughout the episode, they provide valuable insights and tips for homebuyers and investors. Tune in to TR Talks for informative discussions on all things real estate in Ontario.
Shownotes
1. Tarion Warranty [00:01:25]
- Tarion Warranty is a mandatory warranty that protects new home buyers in Ontario
- Covers defects in work or materials, unauthorized substitution, and ensures the home is fit for living
- Covers up to the first seven years of moving in the home
- Three parts: first year warranty, second year warranty, and warranty from third to seventh year
- Pre-Delivery Inspection (PDI) is a statutory form that must be completed prior to occupancy
- Document the condition of the unit prior to taking occupancy
- List deficiencies that are incomplete, damaged, missing, or non-operational
- Ontario Builder Directory on the Home Construction Regulatory Authority (HCRA) website is a good tool to check the reputation of builders and how much warranty is left on a property
2. Deposit Protection [00:02:50]
- Tarion protects up to $100,000 on a freehold home as a deposit
- In case a builder goes bankrupt or breaches the contract, as agreed upon with the buyer
- For condo purchases, deposit protection is up to $20,000
3. Delayed Closing and Occupancy Protections [00:03:50]
- Builder guarantees a home that will be ready for the move-in date specified in the agreement
- Date can be extended under some circumstances by the builder
- Max reimbursement of $7,500 if delay closing is submitted and not enough notice is given in the first year
- Delay can be compensated for living costs such as hotels
4. Importance of PDI [00:09:10]
- PDI is an inspection that must be done prior to occupancy
- Documenting the condition of the unit prior to taking occupancy is crucial
- List deficiencies that are incomplete, damaged, missing, or non-operational
- Tarion provides a checklist on its website to ensure thorough inspection
- Appoint a designate for the inspection or go with a professional realtor
- Ontario Builder Directory on the HCRA website can tell you the reputation of the builder and how much warranty is left on a property
5. Misconception About Tarion Warranty [00:13:35]
- Tarion Warranty should not be ignored or thought of as useless
- Documenting findings in the forms is important as builders cannot get away with it and must fix the problems
- Builders want to ensure that their clients are happy and build their reputation
- They will cover and find solutions to fix those problems
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