Regulation - Other
Deposit Protection
Regulation Number(s):
N/A
Instrument Type:
Regulation - Other
Bill or Act:
Ontario New Home Warranties Plan Act
Summary of Proposal:
Based on consultation feedback, including third-party survey data received from homeowners and builder/vendors, Tarion is proposing to increase deposit protection for non-condominium freehold homes from the current $40,000 to 10% of purchase price to a maximum coverage of $100,000 and a minimum of $60,000. The minimum threshold of $60,000 coverage ensures that all non-condominium freehold homes will have increased coverage under this proposal; this means that non-condominium freehold homes with a purchase price below $600,000 will have $60,000 coverage.
Any enhancements to warranty coverage will involve an additional cost and, therefore, Tarion is proposing a nominal enrolment fee increase. The average enrolment fee increase is $23 but it is distributed in a progressive manner. There is a no fee increase for homes with purchase prices up to $400,000.
The Minister of Government and Consumer Services is proposing changes to the Ontario New Home Warranties Plan Act (ONHWPA) which if passed, would allow for deposit protection coverage to include upgrades and extras.
Any enhancements to warranty coverage will involve an additional cost and, therefore, Tarion is proposing a nominal enrolment fee increase. The average enrolment fee increase is $23 but it is distributed in a progressive manner. There is a no fee increase for homes with purchase prices up to $400,000.
The Minister of Government and Consumer Services is proposing changes to the Ontario New Home Warranties Plan Act (ONHWPA) which if passed, would allow for deposit protection coverage to include upgrades and extras.
Further Information:
Regulatory Impact Assessment
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Deposit Protection - Summary
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Deposit Protection - Amending Reg. 892 of R.R.0 1990
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Proposal Number:
17-MGCS020
Posting Date:
October 24, 2017
Comments Due Date:
December 8, 2017
Contact Address:
56 Wellesley St W, Toronto, ON