Regulation - Other
Consultation on Topics Related to Future Changes to Tarion
Regulation Number(s):
892
894
165/08
522/17
894
165/08
522/17
Instrument Type:
Regulation - Other
Bill or Act:
Ontario New Home Warranties Plan Act
Summary of Decision:
Effective February 1, 2021, homeowners are now benefitting from more changes to the warranty and protection program. These changes support Tarion's continued role in administering new home warranties and protections in the province and the designation of the Home Construction Regulatory Authority.
To ensure Tarion can better focus on administering warranties and protections for purchasers of new homes, Tarion amended some of its current regulations, including:
• A new requirement that vendors attach a Warranty Information Sheet to purchase agreements to provide clear and helpful warranty and other information at the point of sale.
• The evaluation criteria that must be met for a home to qualify for enrolment, and for a home to be enrolled, in the Ontario New Home Warranties and Protection Plan so that a vendor or builder can sell or build a new home.
• The provisions that should be included in standard vendor and builder agreements with Tarion.
• Temporary changes to registration renewal to allow for a seamless transition of this responsibility to the new regulatory authority.
Tarion sought public input on these changes from September 18 to October 19, 2021, including hosting homeowner and builder roundtables and accepting written consultation submissions.
Thank you for sharing your feedback on creating a stronger and more transparent new home warranty and protection program for all Ontarians. The input received has been helpful for improving the new home warranty process.
To ensure Tarion can better focus on administering warranties and protections for purchasers of new homes, Tarion amended some of its current regulations, including:
• A new requirement that vendors attach a Warranty Information Sheet to purchase agreements to provide clear and helpful warranty and other information at the point of sale.
• The evaluation criteria that must be met for a home to qualify for enrolment, and for a home to be enrolled, in the Ontario New Home Warranties and Protection Plan so that a vendor or builder can sell or build a new home.
• The provisions that should be included in standard vendor and builder agreements with Tarion.
• Temporary changes to registration renewal to allow for a seamless transition of this responsibility to the new regulatory authority.
Tarion sought public input on these changes from September 18 to October 19, 2021, including hosting homeowner and builder roundtables and accepting written consultation submissions.
Thank you for sharing your feedback on creating a stronger and more transparent new home warranty and protection program for all Ontarians. The input received has been helpful for improving the new home warranty process.
Analysis of Regulatory Impact:
The regulation creates a new requirement for all builders and vendors of new homes to attach a Warranty Information Sheet to purchase agreements to provide clear and helpful warranty and other information at the point of sale. It also includes evaluation criteria that must be met for a home to qualify for enrolment, and for a home to be enrolled, in the Ontario New Home Warranties and Protection Plan so that a vendor or builder can sell or build a new home, and provisions that should be included in standard vendor and builder agreements with Tarion.
This change may create an administrative impact to builders and vendors to adapt their process to attach the new Warranty Information Sheets. Additionally, there could be some new costs for builders and vendors of new homes to meet the revised criteria for enrolling a home a home in the Ontario New Home Warranties and Protection Plan.
This change may create an administrative impact to builders and vendors to adapt their process to attach the new Warranty Information Sheets. Additionally, there could be some new costs for builders and vendors of new homes to meet the revised criteria for enrolling a home a home in the Ontario New Home Warranties and Protection Plan.
Further Information:
Links to regulations – 20-MGCS020_English
(Download Adobe Reader)
Registrar's Advisory - Transitional and Other Matters as of February 1, 2021
Proposal Number:
20-MGCS020
Posting Date:
September 18, 2020
Summary of Proposal:
The Rebuilding Consumer Confidence Act, 2020 was passed on July 14, 2020 and included amendments to the Ontario New Home Warranties Plan Act to support Tarion's continued role in administering new home warranties and protections if the New Home Construction Licensing Act, 2017 is proclaimed into force.
To ensure Tarion is able to focus on administering warranties and protections for purchasers of new homes once it no longer has responsibility for registering new home builders and vendors, Tarion is required to amend some of its current regulations. In addition, these changes will support the proposed designation of a regulatory authority under the New Home Construction Licensing Act, 2017. Your feedback will help to inform Tarion's regulatory changes to support implementation of these key government initiatives.
The Ministry of Government and Consumer Services is also seeking input on proposed regulation to support the intended proclamation of the New Home Construction Licensing Act, 2017 and the proposed designation of a new regulatory authority under that Act.
Tarion is seeking public input on the following areas:
• A new requirement that vendors attach a Warranty Information Sheet to purchase agreements to provide clear and helpful warranty and other information at the point of sale.
• The evaluation criteria that should have to be met for a home to qualify for enrolment, and for a home to be enrolled, in the Ontario New Home Warranties and Protection Plan so that a vendor or builder can sell or build a new home.
• The provisions that should be included in standard vendor and builder agreements with Tarion.
• Temporary changes to registration renewal to allow for a seamless transition of this responsibility to the regulatory authority, if one is designated.
To ensure Tarion is able to focus on administering warranties and protections for purchasers of new homes once it no longer has responsibility for registering new home builders and vendors, Tarion is required to amend some of its current regulations. In addition, these changes will support the proposed designation of a regulatory authority under the New Home Construction Licensing Act, 2017. Your feedback will help to inform Tarion's regulatory changes to support implementation of these key government initiatives.
The Ministry of Government and Consumer Services is also seeking input on proposed regulation to support the intended proclamation of the New Home Construction Licensing Act, 2017 and the proposed designation of a new regulatory authority under that Act.
Tarion is seeking public input on the following areas:
• A new requirement that vendors attach a Warranty Information Sheet to purchase agreements to provide clear and helpful warranty and other information at the point of sale.
• The evaluation criteria that should have to be met for a home to qualify for enrolment, and for a home to be enrolled, in the Ontario New Home Warranties and Protection Plan so that a vendor or builder can sell or build a new home.
• The provisions that should be included in standard vendor and builder agreements with Tarion.
• Temporary changes to registration renewal to allow for a seamless transition of this responsibility to the regulatory authority, if one is designated.
Contact Address:
56 Wellesley St. W., 6th Floor, Toronto ON, M7A 1C1
Effective Date:
February 1, 2021
Decision:
Approved