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Buying A House: Buying New
The Ontario New Home Warranty Program
Excerpts from ONHWP publications.
All new home builders and vendors in Ontario are required by law to
register with the Ontario New Home Warranty Program (ONHWP) but unfortunately not all do.
Be certain before you buy, that the builder or vendor is registered with ONHWP.
If you have any doubts, call your ONHWP Regional Office for more information.
The total maximum coverage on any housing unit is $100,000* and up to
$20,000 deposit coverage if the builder cannot or will not finish the job. The
builder warrants the house to be free from defects and deficiencies, fit to live in, and
will meet Building Code requirements for one year after posession by you.
Homeowners are responsible for notifying the builder and the ONHWP in
writing of any complaints before the end of the first year. Builders may
pass on warranties from manufacturers, suppliers and sub-contractors which might extend
beyond the first year, but you'll have to make any claims directly to those suppliers.
Water seepage, leakage through the building envelope, defective
plumbing, heating and electrical systems, and the doors, windows and exterior cladding are
all covered for two years.
Major structural defects were covered for five years in homes built
before Dec. 31, 1990 and for seven years in homes built after Dec. 31, 1990.
ONHWP also protects you against delayed closings without advance
notice, and against substitutions without your consent.
Knowing what's not covered is also important. Normal wear and
tear, shrinkage, settlement of backfill, insects, rodents, visible finish items not noted
by you, and new homes built on old foundations are not covered.
Custom and contract-built homes may not always be covered, and if you
are acting as your own general contractor, remember it's your responsibility to
arrange warranty coverage with your suppliers.
The Bottom Line: Shop wisely, check credentials and use a
lawyer to formalize your contract with the builder. Lastly, it's important that you
complete, or have completed for you, a pre-delivery inspection report. Record on
ONHWP's Certificate Of Completion and Possession (CCP) anything and everything you are not
satisfied with.
It's important to have a friendly, constructive inspection. On-site disagreements
over what should and shouldn't be listed are counter-productive and harmful to your
relationship with your builder.
* At time of publication. Total amounts may vary with time and/or ammendments
to the Program.
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