VIDEO: What Realtors Need to Know About Tarion
By Lucas on Feb 28, 2014
Tarion is a private corporation that regulates the new home industry, licenses new home builders and ensures homebuyers’ warranty rights. As industry professionals, Tarion is eager to work with realtors, so that homebuyers are familiar with their warranty rights.
When selling a previously owned home, real estate agents can use continuing warranty coverage as an excellent point of sale. In accordance with Ontario legislation, every builder of a new home must be registered with Tarion and is responsible for renewing their registration on an annual basis. In addition, builders are required to enrol every new home and condominium unit with Tarion. As a realtor, it is crucial to check that the house or unit you’re selling is enrolled and how much of the warranty is remaining. You can access this information easily online, using the Ontario Builder Directory.
Every home that is enrolled with Tarion receives a seven-year warranty coverage that stays with the home even if the ownership changes. This means that purchasers assume whatever is left of the warranty coverage until expiration. If you find that a home you are selling is not enrolled, it is your obligation to report this to Tarion and advise your clients in case the home was built illegally. Failure to do so could result in the loss of your realtor license and potential charges under the provincial offences act.
Once a resale home has been purchased, you should advise your client to contact Tarion to notify them of the change of ownership in order to access all the information about the home and its warranty. They will need to be ready to provide proof of ownership; an Agreement of Purchase and Sale or a Transfer Deed of Land are sufficient.
For further information about the new home warranty, a number of helpful resources including informative videos and brochures can be found online at www.tarion.com, on Tarion’s Facebook page or you can call 1-877-9TARION.
