5 things every buyer of a new build needs to know

​Five things every buyer of a new build needs to know

(NC) If you’re in the market for a newly built house or condominium unit, it’s important to know what’s involved to ensure you have a positive experience and avoid unexpected surprises. Here are five things to keep in mind.

1. The builder needs to be licensed. Your home must be built by a builder who is registered with Tarion, Ontario’s new home building regulator. To confirm that your builder is registered, check out the Ontario Builder Directory on their website.
2. You may be compensated for delays. Your home should be completed by the date the builder committed to in your Agreement of Purchase and Sale. If your builder does not meet this date, you can apply for delayed closing compensation up to $7,500. 
3. Your deposit is covered. The deposit you put down on your new home is protected if your builder does not fulfill your purchase agreement, or you exercise your right to terminate it. Deposits on freehold homes are covered for up to $60,000 if the sale price is $600,000 or less, and 10 per cent of the sale price to a maximum of $100,000 if the sale price is higher than that. Deposits on condominium units are fully protected through the trust provisions of the Condominium Act; however, there is also protection for up to $20,000 through the new home warranty program if necessary.
4. Your home comes with a warranty. Your warranty starts when you take possession. It includes one-, two- and seven-year warranties with coverage of up to $300,000. Further details about the warranty can be found in the Homeowner Information Package, which your builder must give you on or before your closing date.
5. Maintain your home and manage your warranty. As a new homeowner you have responsibilities too, which include maintaining your home. If you need to make a warranty claim, be sure to submit the correct warranty form to TARION before your deadline. 

TARION Warrany Corporation