Changes to Ontario’s New Home Warranties Regime

Introduction

Change is coming to the regulation of builders and vendors of new homes in Ontario.

Tarion came into being in 1976, with the enactment of the Ontario New Homes Warranties Plan Act (the “Warranties Act”). Since its conception, Tarion has had a dual mandate – to provide warranty protection to Ontario’s new home owners, and to regulate new home builders and vendors.

However, the Warranties Act is scheduled to be repealed on a date to be determined by proclamation, and will be replaced with two separate pieces of legislation: the New Home Construction Licensing Act, 2017 (the “Licensing Act”) and the Protection for Owners and Purchasers of New Homes Act, 2017 (the “Protection Act”). Essentially, Tarion’s existing mandate is being divided, with an entirely new not-for-profit corporation becoming responsible for oversight of the regulation of new home builders and vendors in Ontario.  It is unclear as to when the new legislation will come into force, but until such time, Tarion will maintain its existing operations and responsibilities.