How Performance Audits & Warranty Claims are Changing [infographic]

All legislation comes with the responsibility to keep it current during changing times. Since the Ontario New Home Warranties Plan Act was enacted in 1976, it stands to reason that there would be time to revisit what it does and that means both home builders and families having a home constructed need a professional who stays on top of any new regulations to walk them through whatever might affect them.

At Belanger Engineering, we understand that the initial act may already seem confusing, but the Rebuilding Consumer Confidence Act of 2020 that was passed on July 14th adds to that. The process is still in the regulatory development stage, so it is important to reach out to us for performance audits & warranty claims. We will stay on top of the proposals that may come into force in the months and years ahead. Here are the proposed regulatory changes:

• Information sharing- The Tarion Warranty Corporation (the Warranty Authority, or WA) is being required to share information with the Home Construction Regulatory Authority (RA). This represents a separation of functions that should provide more effective regulations and improved protections for consumers.
• Warranty and protections process- With the newer regulations, the application process to enroll homes or qualify homes for enrollment, as well as the home buyer appeal process, would be clarified.
• Indemnification requirements- If a builder or vendor fails to fulfill their obligations, they would need to reimburse the WA for losses incurred, as well as an administrative fee of 15 percent on the amount that was paid by the WA to the new home buyer, under the warranty program. Fees are also assessed on illegal builders and vendors.
• Transition regulations- As is the case with any new regulations, there will be some cases that occur during transition phases. Allowances have been made for this regarding agreements, security, guarantees, indemnities, appeals, and other factors.
• Evidence required- A claimant has needed to explain the reason they are making a claim, but it has been unclear before regarding whether they needed to prove the cause. This process is ongoing and future regulation should clarify what is required to be provided for warranty claims.