An agreement of purchase and sale is a legal document that outlines the terms and conditions of a real estate transaction. Tarion is a warranty program that protects new home buyers in Ontario, Canada, from defects in their newly built homes.
If you are looking to purchase a new home in Ontario, it is important to understand the role of Tarion and how it affects your agreement of purchase and sale.
When you purchase a new home in Ontario, the builder is required by law to enroll the home in the Tarion program. This ensures that the home is covered by a warranty in case of defects or issues with the construction.
Your agreement of purchase and sale should outline the terms of the Tarion warranty, including the coverage period and what is covered under the warranty.
Some important things to look for in your agreement of purchase and sale with respect to Tarion include:
1. Coverage period – The Tarion warranty typically covers the first year of ownership for items such as defects in workmanship and materials, two years for defects in electrical, plumbing, and heating systems, and up to seven years for major structural defects.
2. Deposit protection – Your agreement of purchase and sale should specify how your deposit is protected under Tarion`s Deposit Protection Program. This program provides up to $60,000 in deposit protection in case your builder goes bankrupt or fails to complete the home.
3. Warranty forms – Your builder is required to provide you with warranty forms from Tarion. Make sure you receive these forms and understand what they cover.
4. Builder obligations – Your builder has certain obligations under the Tarion program, including providing you with a pre-delivery inspection and completing any necessary repairs covered under the warranty.
It is important to review your agreement of purchase and sale with a lawyer who is experienced in real estate law and understands Tarion`s regulations. This will ensure that you are protected as a new home buyer and that you fully understand your rights and obligations under the Tarion program.
In conclusion, understanding the agreement of purchase and sale and how it relates to Tarion is crucial when purchasing a new home in Ontario. Make sure you review your agreement carefully and seek legal advice to ensure that you are protected under the Tarion program.