Participants in the new home warranty process

There are many parties, steps, and interests involved in the new home building, buying, and home warranty processes, which has made it a complex process for home buyers, builders, Tarion, municipal officials, and others.
Potential parties involved include:

  • Banks and lenders
  • Vendor/builder
    • Sub-contractor and trades
    • Manufacturers (building product)
    • Architects & engineers
  • Lawyers and expert witnesses
  • Licence Appeal Tribunal
  • Tarion
    • Ministry of Government and Consumer Services (Accountability Agreement with Tarion)
  • Canada Mortgage and Housing Corporation
  • Municipal building official
    • Ministry of Municipal Affairs (building code)
  • Condominium board
  • Home inspector
  • Real estate lawyer
  • Real estate agent

While Tarion is governed by the ONHWP Act, it also has a direct link to the Ontario Building Code Act.

The Building Code Act, 1992, and the Building Code, a regulation under the Act, are administered by the Ministry of Municipal Affairs. The Code regulates new construction (including renovation) in respect of fire safety, accessibility, energy efficiency, and other building systems. The Building Code Act, 1992, also provides municipalities with the authority to establish standards for the maintenance and occupancy of existing buildings through property standards.

There is a direct and important relationship between the Code and the warranty provision through Tarion. The ONHWP Act requires a vendor to warrant that the home is constructed in accordance with the Code. This implies that at minimum, a house must meet the Code. Changes to the Code have an impact on what is warrantable.