©Author: Bestland Consulting

As a builder in Ontario, one of your primary responsibilities is ensuring that the homes you build are safe, reliable, and protected. This is where Tarion Warranty Corporation comes into play. Tarion provides essential protection for homebuyers, ensuring that new homes are free from significant defects, and that buyers have recourse should issues arise. In order to legally sell newly built homes in Ontario, builders must register for Tarion Warranty Coverage, and understanding the process is crucial to staying compliant and protecting your business.

In this article, we will explore how Ontario builders can register for Tarion warranty coverage, the steps involved, and the benefits of ensuring that your new builds are protected. Whether you’re a first-time builder or a seasoned professional, this guide will provide you with all the information you need to navigate the Tarion registration process with ease.

What is Tarion Warranty Coverage?

Tarion is a non-profit organization established by the Ontario government to administer and enforce the Ontario New Home Warranties Plan Act. This act requires all new homes built in Ontario to be enrolled in Tarion’s warranty program, offering homebuyers protection against defects in materials, workmanship, and structural issues.

Key Features of Tarion Warranty Coverage Include:

  • One-Year Coverage: Protection against defects in workmanship and materials.
  • Two-Year Coverage: Protection against defects in plumbing, heating, and electrical systems.
  • Seven-Year Coverage: Structural warranty covering major defects in the home’s foundation, load-bearing components, and other critical structural elements.

For builders, enrolling in Tarion’s warranty program is a legal requirement, and it ensures that you are compliant with Ontario’s building regulations. It also provides homebuyers with peace of mind, knowing that their new home is protected from defects and issues that could arise after purchase.

Why Is Tarion Warranty Coverage Important for Builders?

Registering your homes with Tarion not only ensures compliance with Ontario law but also offers several other key benefits for builders, including:

1. Consumer Trust

  • Tarion’s warranty program provides buyers with the confidence that they are purchasing a new home from a licensed and reputable builder. Buyers are more likely to choose a home that is backed by warranty protection, knowing that they have recourse if defects arise.

2. Legal Requirement

  • As per the Ontario New Home Warranties Plan Act, builders are required to provide warranty coverage for all new homes sold. Failing to register with Tarion can result in legal consequences, including penalties or the inability to legally sell homes.

3. Improved Marketability

  • Homes that are enrolled in the Tarion Warranty Program have a distinct advantage in the market. Buyers often prefer homes with warranty coverage, as it provides them with additional protection and assurance.

4. Protection for Your Business

  • Offering warranty coverage protects your reputation and your business. In the event of construction defects, Tarion steps in to manage claims, reducing the likelihood of costly legal battles for the builder. Additionally, Tarion helps resolve disputes between builders and homeowners.

How to Register for Tarion Warranty Coverage: Step-by-Step Guide

Registering your homes with Tarion is a straightforward process, but it’s important to ensure you follow all the necessary steps to avoid delays and ensure your homes are properly covered.

Step 1: Ensure You Are HCRA-Licensed

Before you can register homes with Tarion, you must be a licensed builder with the Home Construction Regulatory Authority (HCRA). The HCRA regulates builders in Ontario, and only licensed builders can register homes for Tarion warranty coverage. This means that before you proceed with Tarion registration, you must:

  • Apply for an HCRA Builder License: Complete the HCRA builder license application via the HCRA Builder Portal. This includes submitting necessary documentation such as financial records, background checks, and competency certifications.
  • Ensure Your License Is Active: Only licensed and in-good-standing builders can apply for Tarion registration. If you are not licensed, you will need to complete the application process with the HCRA.

Tip: Ensure that all your documentation is up-to-date and compliant with HCRA standards before applying for a license to avoid any delays.

Step 2: Create a Tarion Builder Account

Once you are a licensed builder with the HCRA, you can proceed to create an account with Tarion. To register your homes for warranty coverage, follow these steps:

  • Visit the Tarion website and create a builder account by providing your HCRA builder license number and other identifying information about your business.
  • If you already have a Tarion account, simply log in to access your account dashboard.

Tip: Ensure that your Tarion account is linked to your HCRA license, as this is required for warranty registration.

Step 3: Register Each Home Individually

After creating your account, you will need to register each new home that you build for warranty coverage. Here’s how to do it:

  1. Log into Your Tarion Builder Account: Access your dashboard through the Tarion portal.
  2. Provide Project Information: For each home, input the following information:
    • Project Details: Including the address, project start and end dates, and type of dwelling (e.g., detached home, semi-detached, townhouse).
    • Home Specifications: Provide details about the home’s construction, including the number of bedrooms, square footage, and any customizations.
  3. Submit Documents: Upload any required documents, such as construction contracts, architectural plans, or engineering certifications.
  4. Pay the Registration Fee: Tarion charges a registration fee for each home that is enrolled in the warranty program. The fee varies based on the type and size of the home.

Tip: Ensure that you have all required documents ready before you start the registration process to avoid delays.

Step 4: Confirm and Finalize Registration

After you have submitted the necessary information and paid the registration fee, Tarion will review the details and confirm your registration. You will receive a confirmation email with your home’s warranty coverage details, which will include:

  • The Warranty Start Date: The date on which the warranty coverage begins.
  • Coverage Details: A summary of the warranty coverage, including the 1-year, 2-year, and 7-year coverage periods.
  • Warranty Certificate: An official certificate that proves the home is registered with Tarion and covered under warranty.

Step 5: Provide Homebuyers with Warranty Information

Once the home is registered, provide your homebuyers with the necessary documentation, including:

  • The Warranty Certificate: This confirms the home’s registration and provides an outline of the warranty coverage.
  • Warranty Information Package: This includes important details about how homeowners can make claims and the process for resolving issues covered under the warranty.

What to Do if Changes Occur After Registration

Sometimes, changes may need to be made after your home is registered with Tarion. For example, if there are adjustments to the project timeline, if the home’s specifications change, or if you need to transfer ownership, you must update Tarion accordingly. Here’s how:

  • Log into your Tarion account and navigate to the home’s project page.
  • Update the details based on the changes that occurred, and submit the revised information to Tarion.
  • Request Updates: If any warranties need to be altered due to changes in the home or its ownership, submit a request through the Tarion portal for review and approval.

Common Issues and Troubleshooting

1. Missing Documents or Incorrect Information

Ensure that all information provided is accurate and complete to avoid delays in the registration process. Double-check that your project details, home specifications, and supporting documents are all correct.

2. Payment Issues

If you encounter problems paying the registration fee, make sure your payment method is valid and the system is functioning correctly. If the problem persists, contact Tarion customer support for assistance.

3. Delayed Confirmation

Once your registration is submitted, it may take some time for Tarion to process and confirm the warranty. Be patient, and if you have concerns, follow up with Tarion support.

Conclusion

Registering for Tarion Warranty Coverage is an essential step for every builder in Ontario. By ensuring that your homes are enrolled in the program, you protect not only your clients but also your business. The process of registering homes for warranty coverage is straightforward, but it’s essential to be meticulous in providing accurate information and ensuring that all required documents are submitted.

As a licensed builder in Ontario, you have a responsibility to provide quality, protected homes to your buyers, and Tarion warranty coverage helps you meet that responsibility. By following the steps outlined in this guide, you can easily navigate the registration process and ensure compliance with Ontario’s building regulations.

To get help for your builder license, please contact Bestland Consulting (www.bestlandweb.com).

Published by bestland