New home warranties are easily transferrable to the new owner within the initial seven-year period of warranty coverage. A new home warranty does not automatically transfer to the new owner, but it can be transferred by calling the warranty provider.
If you’re looking at purchasing a recently built home in Ontario, there is a very high chance that the home is still under warranty by Tarion. Tarion is the leader in providing coverage for newly built homes in the province.
The seven year warranty coverage from Tarion covers a spectrum of structural issues a new homeowner could possibly face. When a homeowner receives possession of a home, their coverage will begin with Tarion, and end on the seven year mark.
Going back seven years means any home that was built in the year 2014 and later would be covered under warranty (of course, you need to take the date into consideration).
All new homes built by approved builders will carry the seven year warranty coverage. If a home was built by the owner, it may not have coverage. The buyer would need to confirm the home has warranty.
Additionally, if a building was once used for a non-residential purpose and later converted to a condominium, it would not be under warranty either.
There is a common misconception in the real estate market, where buyers think the warranty is automatically transferred to the buyer upon possession. The new homeowner is responsible to make sure the warranty is transferred. Once the transfer is completed, you’ll be given the enrolment number for your home.
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How to Transfer Tarion Warranty to New Owner
The Tarion warranty can be transferred to the new owner by contacting the Tarion Warranty Corporation. You will need to have proof of ownership by submitting the statement of adjustments, transfer deed or Agreement of Purchase and Sale. Once this is completed, the new owner’s name will be added to the warranty coverage.
You’ll also need to create an account with Tarion for access to your Tarion MyHome. The account will give you access to any previous claims, important dates, builder details and warranty information.
As the new homeowner, you need to know who built your home. The builder information can be found in your online Tarion account. It’s advised that you have this information handy, as they’ll be who you call first for any issues.
The warranty corporation makes it very easy to learn more about your warranty. During the first few weeks of homeownership, you should familiarize yourself with the following:
- What the home is covered for
- When the home warranty ends
- How to submit a claim
- The remaining coverage
If you have all this information carefully documented, you’ll be ready if something were to happen.
You can look up a builder to confirm they are registered with the warranty corporation and authorized to build branch new homes in the province of Ontario. To read reviews on Tarion, please visit Google Reviews.
Types of Warranty Coverage Items
Most homeowners will have questions about different situations that may or may not be covered by warranty. A few types of items that may be covered under warranty include issues relating to:
In all cases, your best source of information is the warranty provider. Whether you’re in Alberta, Ontario or British Columbia – you need to contact the appropriate organization.
Tips for Buying New Construction Home with Warranty
A new construction home purchase can be a daunting process, whether it’s your first home or second investment property. We’ve created a simple guide to buying a new construction house safely with the help of Tarion on your side.
In Ontario, a new home builder needs to be registered with Tarion. There are cases where builders are not registered who may start advertising new builds.
Verify Your Builder
There are many home builders in the province, but a few will standout as they’ve made a name for themselves. With industry track-record and building confidence – most people are aware of Fieldgate, Andrin, Mattamy, Great Gulf and Tribute Communities to name a few.
We recommend using the builder verification on Tarion to confirm the build is registered. Next, we recommend having a look at the builder’s previous projects. You can use resources such as BuzzBuzzHomes to view new construction floor plans, details and phases.
Additionally, resources such as Realtor and HouseSigma can provide information on current MLS listings and previously sold listings. A thorough research of the community and their projects – along with builder reviews is crucial for any new buyer.
At the end of your research, you’ll know about the builder’s previous projects, their completion rate, customer feedback and style of their builds.
Read the Documents You Sign
A builder spends thousands of dollars on their purchase agreements, contracts and paperwork. They’ve done considerable work to ensure everything possible is covered in these documents. Whether you have questions about if you can back out of a new construction home contract or if you can get your deposit back – it’s all covered in the agreements.
Let’s face it, we don’t love reading contracts. But this is why you should invest in getting the help of a lawyer. A real estate lawyer can help read and explain those terms to you.
Once a buyer and builder sign the contract, it is considered to be legally binding. If the terms are to be broken, there can be legal consequences. Keep in mind that both the builder and buyer have something to bring to the table at the end of the contract.
Your Tarion warranty information will be part of the contract as well. As your coverage is categorized into three terms, 1-year, 2-year and 7-year – you need to know what’s covered under each term. Some coverage items will expire after the first year, while others are covered for seven years.
There is nothing wrong with not understanding a particular condition or term in the contract. It is in your best interest to understand the contract before you sign it.
Pre-Delivery Inspection (PDI) Tips
This is completed prior to taking possession of the home. It’s the one time you get to walk-through the entire home, making sure everything is functional, built-as requested, built-as upgraded and changed as requested.
Whether it’s a workmanship issue or structural issue – it all gets covered in this section. There are many pre-delivery inspection checklists you can use, but remember to be thorough. It is the one time you get point out issues to the builder.
Once issues have been brought up to the builder, they will get them resolved prior to you closing on the home.
Don’t be scared of the pre-delivery inspection, because you’re looking at everything. Dents in the floor, loose tiles, properly aligned cabinets, caulking, paint jobs and grouting should all be considered!