Changes To Tarion’s Guidelines

Purchasers of new-build houses are automatically provided with after-sales warranty from the Builder who built the house and covers the purchasers for up to 7 years. These warranties are required by law and are monitored and enforced by Tarion Warranty Corporation, a not-for-profit corporation established by the Ontario government specifically to administer the Province’s new home warranty program.

In 2024, following implementations of interim measures and public consultations from back in 2020, Tarion rolled out new updates to its new home warranty program, bringing in the Customer Service Standard (CSS), a new process expected to kick in from May 1st, 2024. But what exactly does this standard entail and what are the changes being implemented?

What is the Customer Service Standard?[1]

Under the CSS, homeowners can now reach out to Tarion for assistance with warranty claims and coordinate repair appointments for various trades. These trades primarily handle finishing touches and cosmetic issues in homes, like paint touch-ups and surface defects. Tarion has a separate method to streamline the process for addressing more significant repairs that could impact homeowners' health or safety or lead to emergency situations. As warranties are provided by the Vendor or Builder, homeowners are advised to first contact the Vendor/Builder with their issues.

So, what are the key changes coming into play?[2]

For homes acquired on or after May 1, 2024, the updates include:

1. Extending the initial homeowner submission period to 40 days.
2. Making permanent the temporary 10-day grace period at the end of the first year for submission of warranty claims.
3. Introducing a mid-year submission at six months.
4. Allowing homeowners to add potential defects to a list at any point during the first year.
5. Getting rid of the 30-day limit for homeowners to request conciliation, allowing requests from the beginning of the Builders Repair period until the next form submission date. For year-end forms, homeowners can request conciliation up to 150 days after the first year's end.

What stays the same?

1. Builder repair periods remain unchanged.
2. The second year and seven-year processes remain unaffected.
3. No impact to the common element processes.
4. No changes to the special/seasonal processes.
5. Emergency procedures remain as they were.

Information regarding the changes

Form Changes:[3]

The latest updates will now prompt homeowners to initiate their first warranty submission on day 41. This change in the timeline formally incorporates the first grace period into the initial submission window, making the 10-day grace period that was introduced as a temporary measure in September 2020 a permanent feature. 

Additionally, Tarion has also introduced a mid-year form set to automatically submit at the six-month mark. This development enables homeowners to identify issues beyond the limitations of the initial and year-end periods. 

Furthermore, the previously mentioned interim ten-day year-end grace period for the submission of warranty claims will only become permanent if homeowners can prove, through written evidence, that they reported the issue to their builder within the first year. 

Currently, homeowners who fail to identify issues during the 30-day submission window face a delay of up to 10 months before they can seek formal assistance from Tarion for the repairs in question. These specific changes introduced by Tarion aim to relieve the pressure stemming from the 30-day report by allowing for a mid-year report submission, thereby addressing the genuine challenges encountered by homeowners.

Form Submission Changes:[4]

Homeowners can now pinpoint their concerns on Tarion’s MyHome portal, where they will be documented into a list. This list will then be automatically submitted by the MyHome portal at three key intervals: the initial submission on day 41, the mid-year submission on day 183, and the year-end submission on day 365. As part of these submissions, a builder repair period will be generated. The items listed on the homeowners’ MyHome portal at each specific interval will automatically follow the specified timeline outlined above. This streamlined process makes it simpler for homeowners to add their concerns to the portal as they identify them. Additionally, this new system also provides builders with stability by delivering them consolidated lists at the designated intervals from each submission.

Changes to Conciliation Requests[5]:

Tarion will implement changes regarding when homeowners can request a conciliation inspection within the first year. Under the updated guidelines, homeowners can now initiate a conciliation request from day 1 of the builder’s repair period until the subsequent form submission date for both the initial and mid-year submissions. In the year-end form, homeowners have the flexibility to request conciliation up to 150 days after the end of the first year. The conciliation inspection is scheduled only after the builder's repair period has officially expired. The scheduling of conciliation inspections follows a specific timeline based on three key intervals:

1. Conciliation requests for the initial form can be submitted between day 42 and day 183.
2. Conciliation requests for the mid-year form can be submitted between day 184 and day 365.
3. Conciliation requests for the year-end form can be submitted between day 366 and day 516 (150 days after the year-end).

Under the current CSS, homeowners have a 30-day window from day 487 to day 516 to request a conciliation inspection. With the updated guidelines, homeowners now have increased flexibility regarding the timing of their year-end requests, providing additional time after the first year’s end. This increased flexibility reduces the urgency of submitting requests, encouraging homeowners and builders to work together in addressing the issues.

Length of Builder Repair Period Unchanged:[6]

There have been no updates to the length of the builder repair period.

For homeowners who request a conciliation inspection during the initial 120-day builder repair period (from day 42 to day 162), the second 30-day builder repair period begins immediately after the conclusion of the initial 120-day repair period. For homeowners who request a conciliation inspection after the expiration of the initial 120-day builder repair period (between day 163 and day 183), the second 30-day builder repair period initiates after the submission of the request. The year-end repair period ends on day 486 (120 days after the end of the first year). The second 30-day builder repair period begins after the submission of the request, but homeowners must make this request by day 516. The 30-day post-conciliation repair period remains unchanged.