Friday , August 19 2022

Province takes measures to protect new home buyers



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NEWS RELEASE
ROMAN ROSS ROSP
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The Ontario Government is working for the people by protecting hard-working Ontarians in making one of the biggest purchases in their lives – a new home. The province is transforming a Tariff Guarantee Corporation and implementing initiatives to better protect buyers of canceled pre-construction condominium projects.

"There are many families across the province that have faced difficulties over the years in trying to answer from Tarion," said Romano, a Member of the Provincial Parliament to Sault Ste. Marie "For our government, one thing is clear, Tarion is broken. That's why our government is proud to announce that we are making clear steps to put People of Ontario first by transforming Tarion and strengthening consumer protection."

The government operates by:

  • Establish a separate Tarion regulator for new home builders and sellers to tackle conflicts of interest.
  • Planning to introduce legislative improvements that, if passed, will enable the government to ask Tarion to make the board and executive compensation available to the public and move to a more balanced skills-based board composition.
  • Explore the feasibility of a multi-provider insurance model for new home security and security in Ontario.
  • Introducing new initiatives to better inform and protect buyers of condominium projects that have canceled.

Tarion is expected to continue to provide services to new homeowners, builders and estate agents during the transition with more government oversight.

The Honorable, Douglas Cunningham, released the 2016 independent report with a number of recommendations on transforming Tarion. The report notes that there is intrinsic conflicts of interest in the current structure that lets new homeowners who are vulnerable.

"Establishing a separate regulator for new home builders and dealers will address the current conflicts of interest with Tarion," said Bill Walker, Government Minister and Consumer Services. "Today's announcement will help make Tarion more accountable and transparent and provide a quality service for the people of Ontario."

The initiatives announced today support the government's wider housing supply action plan by helping to remove barriers to home ownership.

CONTACT FACTS

  • Tarion is responsible for administering the Ontario New Home Securities Scheme Act and passed in 1976. The deed deals with new home warranty guarantees and regulator builders.
  • New homes built for resale or contract with a proprietor must be registered in the statutory home security program and builders must be registered with Tarion.
  • In 2017, 68,945 new homes had enrolled in the warranty program – 46 per cent of them were condominium units.
  • In 2017, 5,549 builders and sellers were registered with Tarion.

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