Updated on April 8, 2015
Buying a New Construction Condo – Warranty Protection
When purchasing a brand new construction condominium in Ontario, the Tarion Warranty Corporation provides protection to buyers under the New Home Warranty Program. By offering protection to buyers of new building jobs, membership of the system is required for new building contractors. Such protection includes: deposits, flaws in materials and the workmanship and protection problems involving occupancies and delayed closures.
The software covers buyers for numerous things yet the most significant particularly in this marketplace is a deposit guarantee. With news about new construction condominium projects not moving forward, it’s an encouraging to be aware the buyer is covered for up to $20,000 (plus interest) depending on the deposit sum given to the contractor. This would come into play in the event the contractor is not able to finish the trade for any motive.
An important measure is a review. Via the unit together with the inspector, the buyer is escorted before the possession date of a brand new building condominium to point out any deficiencies that need to be dealt with by the contractor. New building condominium buyers are covered within their new condominium for one year beginning the date of possession for workmanship and material flaws. There’s a 7 year guarantee along with a 2 year too, which covers important flaws in the unit.
Another problem that’s vital to today’s real estate marketplace links to delayed occupancy dates. The condominium contractor is lawfully allowed to delay a fresh building job provided that they give appropriate written notice to the buyer. But in the event the purchaser isn’t notified as required, the buyer has the right to seek damages. One thing to notice is that damages WOn’t be paid in the event the delay was brought on by the buyer themselves or in the event the delay wasn’t under control of the contractor (strikes, floods etc). Please be aware that in the event a brand new building job is finished by the programmer the buyer isn’t needed to take it.
Buyer beware! This New Home Warranty Program employs more generally to condominiums and new houses there make cautious note to be on the lookout for are properties which seem new but really are only commonly renovated or are really constructed on old base. The Tarion Warranty will not apply to residences that have been renovated or have been constructed on present base. Ask your Realtor in the event you are uncertain about whether the property is covered under Tarion Warranty.
Purchasing new building may be an exciting procedure and an excellent investment. Make certain when purchasing what is apparently a brand new building property, that the Tarion Warranty is truly appropriate.