Real Estate

2, 5, 10 year warranty on new home

  • Last Updated:
  • Nov 27th, 2017 6:48 pm
[OP]
Member
May 24, 2009
205 posts
15 upvotes

2, 5, 10 year warranty on new home

Closing in on a new house purchase - would like some advice on a couple things:

1) are there any specific clauses I should put in the purchase agreement regarding the warranty? Any protection for if the builder goes out of business?

2) can a builder get out of their warranty obligation by dissolving their development company, and starting a new one?

Thanks!
5 replies
Deal Addict
Jan 15, 2017
3526 posts
2882 upvotes
As every province has its own new home warranty program, it would be helpful if you shared your location.

Assuming that you are in ON, with reference to the 2, 5, 10 yr time frames, Tarion administers the warranty program. If your builder goes out of business, Tarion will step in and protect you. You should review Tarion's role, procedures and complete information on your home's warranty here: https://www.tarion.com/.

You may also wish to register for MyHome here: https://myhome.tarion.com/hop/

https://blog.tarion.com/apm_questions/
Banned
Oct 14, 2015
264 posts
108 upvotes
Markham, ON
Dont know where you are but in Ontario, that's why there's Tarion
Deal Fanatic
May 5, 2008
5338 posts
1985 upvotes
Winnipeg
The builders run the warranty programs...Good luck
[OP]
Member
May 24, 2009
205 posts
15 upvotes
So there's no protection for buyers of new homes in BC?

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