Hiring someone to build your new home?
A contract home is not the same as an owner-built home. A contract or custom home is constructed under a contract between a builder and a land-owner, where the builder provides for the construction of a home on that land.
If you have entered into an agreement with someone to build you a home, that person:
Must be a registered builder with Tarion;
Must enroll your home in the statutory warranty plan, and will be responsible for the statutory warranty coverage on your home.
BY LAW, ANYONE IN ONTARIO WHO PLANS TO BUILD A HOME FOR SOMEONE ELSE OR SELLS A NEW HOME MUST BE REGISTERED WITH TARION.
Every registered builder is listed on the Ontario Builder Directory, searchable on Tarion.com.
PLEASE BE SUSPICIOUS OF CONTRACTORS WHO SAY THINGS LIKE THESE:
"You do not need a Tarion warranty because I offer my own" (In Fact in Ontario everyone who builds a new home for sale or under contract with an owner is required to be licensed by Tarion).
"I could enroll in the home in the warranty program, but it would cost you around $20,000." (In Fact, home enrolment fees range from $385 - $1,800 and are paid by the builder).
"We do not need to enroll custom/contract homes" (In Fact Every builder in Ontario must enroll their homes with Tarion and give buyers the statutory warranty - this includes contract homes, custom homes, and cottages equipped for year-round living.
Written by: Anna Belyntseva (anna@jj.team)
