New Home Buyer Tarion Protection

New Home Buyers Page Content If you’re considering purchasing a new home, congratulations! It’s an exciting and rewarding process. A new home may also be the most significant purchase you ever make. In addition to the financial commitment, there are a number of lifestyle and home design options you may need to consider. That’s why it’s so important to do your homework and gather as much information as possible about your potential new home before you sign the Agreement of Purchase and Sale. To help prepare you for your purchase, we’ve created Top Ten Tips for New Home Buyers. It’s a step-by-step list that provides research ideas, financial and legal resources, as well as practical maintenance advice. Together these tips will go a long way to ensuring that you’re very happy with your new home. Tarion provides important protection before and after your new home purchase When you buy a new home or condominium in Ontario, you enjoy the benefits of a comprehensive builder warranty. To learn more about this warranty, you can preview or print a copy of our concise, easy-to-read brochure entitled “Warranty Coverage for New Homes in Ontario“. You can also order a copy of this brochure. Your new home warranty begins before you even move in. Once you provide the down payment for your new home, it’s protected. You also have a right to compensation if your builder delays the closing of the sale without giving you proper notice. See Understanding Deposit Protection and Understanding Delayed Closings and Occupancies to learn more. Before you take possession of your new home or condominium, your builder will walk you through a pre-delivery inspection (PDI). Tarion provides a PDI Checklist to help you ensure that this critical inspection is thorough and complete. After moving in, you’re entitled to a 1 Year, 2 Year and 7 Year warranty against defects in work and materials. This warranty comes with certain obligations, so it’s important to understand the statutory warranty process. Protecting your new home warranty also requires that you properly manage the systems in your new home. Tarion offers tips on Maintaining Your Home to help protect your most important investment for years to...

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Understanding Delayed Closings and Occupancies Windsor Real Estate

Understanding Delayed Closings and Occupancies for Freehold Homes and Condominiums Page Content Under the delayed closing and delayed occupancy warranty, your builder guarantees that your home will be ready for you to move in either by a date specified in the purchase agreement or by a date that has been properly extended if circumstances occur that delay the home’s completion. In many cases, your builder will be required to compensate you if a delay occurs. For more information about delayed closings and occupancies, including Addendums and Statement of Critical Dates calculators, please see below. Freehold Buyers Delayed Closing Protection To learn more about Delayed Closing protection, click on the link below that corresponds to the signing date of your purchase agreement: • Your purchase agreement was signed on or before June 30, 2008 • Your purchase agreement was signed on or after July 1, 2008 Delayed Closing Addendums If your new freehold home’s purchase agreement was signed on or after July 1, 2008, click on the link below that corresponds to your type of closing to download an addendum: • Freehold Firm Closing Date – Statement of Critical Dates and Addendum • Freehold Tentative Closing Date – Statement of Critical Dates and Addendum However, if project viability conditions are permitted and included in your purchase agreement or the deal is conditional on the sale of the purchaser’s existing home, you must use one of the forms below: • Freehold Firm Closing Date – Statement of Critical Dates and Addendum – Econonic Conditions • Freehold Tentative Closing Date – Statement of Critical Dates and Addendum – Economic Conditions Statement of Critical Dates calculator To create an Addendum with a Statement of Critical Dates, click on the link below: • Statement of Critical Dates calculator for freehold homes To view or download a Statement of Critical Dates paper calendar, click on the link below: • Freehold Tentative Critical Dates Paper Calculator – July 2010 to Dec. 2016 Condominium Buyers Delayed Occupancy Protection To learn more about Delayed Occupancy protection, click on the link below that corresponds to the signing date of your purchase agreement: • The purchase agreement for the first unit sold in your condominium project or phase was signed on or before June 30, 2008 (Ask your builder to provide this information to you.) • The purchase agreement for the first unit sold in your condominium project or phase was signed on or after July 1, 2008 (Ask your builder to provide this information to you.) Delayed Occupancy Addendums If the purchase agreement for the first unit sold in your condominium project or phase was signed on or after July 1, 2008, click on the link below that corresponds...

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Tarion New Home Warranty Protection Windsor Real Estate

This section is intended to help new homeowners understand what’s included in the Ontario New Home Warranties Plan Act (the Act) and what to do if a warranty problem arises. The Act outlines the warranty coverage that builders are required to provide to their customers.  Coverage under the Act includes deposit protection, protection against defects in work and materials, protection against unauthorized substitutions, and protection against delayed closings or delayed occupancies without proper notice. For condominiums, warranty coverage also includes common/shared areas of the building. The aggregate maximum warranty coverage for new homes and condominium units is $300,000*. The maximum coverage for condominium common elements is $50,000 times the number of units, to a maximum of $2.5 million. Most issues related to the Statutory Warranty are resolved between builders and owners without the intervention of Tarion. When necessary, Tarion will help homeowners and builders interpret the limits of the Act, and will intercede to protect consumers when builders fail to honour warranty obligations. * Tarion increased the aggregate maximum warranty coverage provided under the One Year, Two Year and Major Structural Defect warranties to $300,000 for homes with a date of possession on or after July 1, 2006. This increased coverage amount applies regardless of when the purchase agreements or construction contracts in issue were entered into. If the date of possession of a home is prior to July 1, 2006, the warranty coverage under the One Year, Two Year and Major Structural Defect warranties will continue to be as follows: a) $100,000 if the purchase agreement or construction contract for the home was entered into before September 1, 2004; and b) $150,000 if the purchase agreement or construction contract for the home was entered into on or after September 1,...

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Understanding Your New Home Sales Contract

Understanding Your New Home Sales Contract Buying a brand-new home can mean a lot of different things — an opportunity to get the home you really want, a dream come true, an investment for the future, an achievement to be proud of. It is also a legal transaction that should never be done without a detailed written contract! The first rule of homebuying is to get it in writing! A contract, or Agreement of Purchase and Sale, as it is often referred to, spells out the terms between you and your builder — who, what, how, when and how much. It also sets out the rights, restrictions and obligations for each party. Without a detailed contract, there may be no reference point in case of a misunderstanding or disagreement between you and your builder. It may be impossible to prove what was agreed to, and difficult to enforce any arrangement or promise that’s not written down. Unlike resale transactions, there is no standard form of Agreement of Purchase and Sale for buying a new home. In some areas, builders may adapt model contracts prepared by their local home builders’ association or their new home warranty provider. Often, though, builders prepare their own agreements and require that you use those forms. As a result, new home contracts can vary considerably from one builder to another. Typically, a contract will contain information that’s specific to you, the purchaser, and the home you are buying, as well as general information outlining the builder’s practices, limitations, disclaimers and warranty. This fact sheet presents information on some of the terms and provisions that you may find in a new home sales agreement to illustrate what a contract can cover and why. Before you sign a contract with your builder, make sure you fully understand what’s in it and what’s not, and that your interests and concerns are addressed and your questions are answered to your satisfaction. What’s in a New Home Contract? New home Agreements of Purchase and Sale are generally more complex than resale contracts. This simply reflects the fact that a new home is usually a more complex purchase. Contracts can range from a few pages to sizeable documents with many schedules or attachments. A quick rule of thumb may be “the more specific, the better”— having things on paper, even minor items, reduces the potential for confusion and conflict. The purchase of a brand-new home can happen in a number of ways. You may buy a home in a new development from a large building company, or buy from a custom builder to have greater flexibility and choice. You may own a lot and hire a company to construct your home....

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