2020-01-28

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AGENDAWhat’s happening at Tarion

New condo information sheet

New information on the Ontario Builder Directory

Resources for Realtors

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What’s happening at Tarion

Transformation PlanningTarion Improvements

Supporting the Ontario government’s plan to enhance consumer protection for buyers and owners of newly built homes including:

• Separating the regulator for new home builders

• New initiatives to better inform and protect purchasers of cancelled condominium projects.

• Implementing proactive risk-based inspections

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Auditor General’s Report

• 32 recommendations on a wide range of topics, including changes to the PDI and Customer Service Standard

• MGCS and Tarion have accepted all recommendations

Recommendations related to the Customer Service Standard (BB42)

To improve homeowners’ ability to seek assistance from Tarion Warranty Corporation when they have a warranty dispute with their builder, the AG recommend that Tarion:

• Remove its two 30-day deadlines and allow homeowners to submit requests for assistance at any time during the first year of ownership;

• Eliminate the 30-day deadline to request a home inspection;

• Permit homeowners to update their listing of unresolved defects after submitting the initial listing; and

• Reduce the amount of time provided to builders to resolve defects before stepping in to help homeowners.

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Interim Changes to the Customer Service Standard

Tarion is seeking feedback on the following interim measures to address the recommendation in the short-term, while developing longer-term solutions within the next two years.

• Add a grace period to the first 30-day submission period.

• Add a grace period to the request for conciliation period for all form types (such as 30-day, year-end, two-year and major structural defects forms).

• Allow for submission of more than one 30-day form in the initial period and more than one form in the year-end period.

• Add a grace period after the year-end submission period by which a claim may be accepted if the homeowner can show that the builder was provided with written notice of the defect within the one-year period. We are also seeking input on the types of written notices that would be acceptable.

• Make a policy change to the definition of emergency claims to include any water penetration claim (as opposed to “major” water penetration only).

As part of this consultation, we are also seeking input on the length of the proposed grace periods.

Share Your Feedback

• Visit Tarion.com for more information on the proposed interim measures, a Regulatory Impact Assessment and Q&A

• Email feedback to submissions@tarion.com by March 6, 2020.

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Condo Cancellations : Consumer Protection Initiatives

Developing options to require developers to post information about their condominium development projects on their websites

Enhancing disclosures about the risks of purchasing pre-construction condominiums

Updating the OBD to include information about developers with a history of condominium project cancellations

Improving information collection on new home construction projects

Working with the Condominium Authority of Ontario to educate prospective buyers about the condominium purchase process.

Pre-Construction Condominium

Information Sheet

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Enhancing disclosure for buyers of pre-construction condominiums

• .Effective January 1, 2020, vendors and builders are required to complete and include the condo information at the front of the agreement of purchase and sale.

• Terms and conditions have been updated to reflect the new requirement.

Enhancing disclosure for buyers of pre-construction condominiums

The information sheet helps buyers make more informed decisions by highlighting key potential risks and disclosures, including:

• Pre-construction condominiums may not be completed

• Early termination conditions that would allow a developer to cancel a project

• Information about the status of the development (e.g., formal zoning approval)

• Any restrictions on the developer’s land title

• A purchaser has an initial 10-day period to cancel their purchase under the

Condominium Act

• The expected date when a purchaser can take occupancy

• The importance of having the purchase agreement reviewed by a lawyer

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Enhancing disclosure for buyers of pre-construction condominiums

Using the information sheet

• The information sheet must be used with every purchase agreement for a residential unit in a standard condominium corporation and phased condominium corporation.

• Projects that are not required to use the information sheet include:• Leasehold condominiums• Common element condominiums• Vacant land condominiums

• The information sheet is be placed at the front the purchase agreement.

• Placement of the document at the front of the Purchase Agreement does not affect enforceability of the purchase agreement.

• There may be licensing consequences if the information sheet is not attached as the first page of purchase agreements when required.

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Transition rules

• The information sheet is required for new pre-construction condominium projects as of January 1, 2020.

• Projects which have one or more purchase agreements entered into good faith before January 1, 2020 will not be affected unless:• The agreements are all cancelled and project sales start over with the first APS

is signed after January 1, 2020. • It is a phased condominium corporation, in which case, the new information

sheet must be attached for any subsequent phase where the first arm’s length APS is entered into good faith after January 1, 2020.

• The information sheet is not retroactive. An APS entered into prior to January 1, 2020 does not need to be amended to include the information sheet.

Terms of use for the Word Document version

1. The user shall not alter the format, logos or text of the information sheet other than filling in blanks or fields.

2. The information sheet is to be kept as a separate continuous document attached at the front of the agreement of purchase sale.

3. The user shall not create any derivative works that make use of the information sheet without Tarion’s consent.

4. The user is responsible for any changes made to the information sheet.

5. The user is responsible for using the most up to date version of the document.

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Next steps

• The information sheet is available on Tarion.com.

• A fillable version will be available soon

• More information is available on Tarion.com

Questions?

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New Condo Search on Ontario Builder Directory

Results show:• Number of units planned

• Location

• Name of builder

• Status of project – complete, in progress, cancelled

• Reason for cancellation

• All projects from January 1, 2018 onward

10 year history of all illegal building convictions

Search by:

• Name of a company or individual

• Convictions during a specific date range

• Location of the convicted party

• Location where the offence took place.

New Convictions Search on Ontario Builder Directory

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Pre-Construction Condo Education Series

• Pros and Cons

• First Steps and Finding a Builder

• Approval Process

• Delays & Cancellations

• When you sign

• Deposit Protection

• Interim Occupancy

• Tarion Warranty

• Condo Life

Open Door Blog

Blogs and Podcasts

• Guide to condo-speak

• Understanding your common elements

• Five things you should know before buying a condo

• Buying a pre-construction condo

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Questions?

Contact Us

Connect With Us

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Open Door Blog

Contact Centre

1-877-9-TARION(1-877-982-7466)

Stakeholder Relations

1-877-9-TARION (1-877-982-7466) EXT. 3283

stakeholderrelations@tarion.com

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Thank you!

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