O. Reg. 118/23: ADMINISTRATION OF THE PLAN

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ontario regulation 118/23

made under the

Ontario New Home Warranties Plan Act

Made: April 27, 2023
Approved: June 7, 2023
Filed: June 8, 2023
Published on e-Laws: June 8, 2023
Published in The Ontario Gazette: June 24, 2023

Amending Reg. 892 of R.R.O. 1990

(ADMINISTRATION OF THE PLAN)

1. The French version of Regulation 892 of the Revised Regulations of Ontario, 1990 is amended by striking out “avant tous travaux sur ceux-ci” wherever it appears and substituting in each case “avant que des travaux soient effectués sur ceux-ci”.

2. (1) Section 1 of the Regulation is amended by adding the following definitions:

“conciliation assessment report” means a written report setting out the Corporation’s findings and assessment as to whether a claim is covered by a warranty; (“rapport d’évaluation de la conciliation”)

“conciliation inspection” means one or more of a physical inspection, virtual inspection or desk assessment conducted as part of the conciliation of a claim; (“inspection de conciliation”)

(2) The definition of “initial claim period” in section 1 of the Regulation is revoked.

(3) Clause (a) of the definition of “second-year form” in section 1 of the Regulation is amended by striking out “section 4.4” and substituting “section 4.4 or 4.5.1”.

(4) The definition of “year-end claim period” in section 1 of the Regulation is revoked.

3. (1) Subsection 4.2 (1) of the Regulation is amended by adding the following definition:

“initial claim period” means, with respect to a warranty claim with respect to a home, the 31-day period beginning immediately after the date of possession, if the home has a date of possession on or after September 1, 2005. (“période de réclamation initiale”)

(2) Section 4.2 of the Regulation is amended by adding the following subsection:

(1.1) This section applies with respect to homes, excluding the common elements of a condominium project, with a date of possession that is before May 1, 2024.

4. (1) Subsection 4.3 (1) of the Regulation is amended by adding the following definition:

“year-end claim period” means the period that begins at the end of the grace period following the initial claim period provided for in subsection 4.2 (3) and that ends on the first anniversary of the date of possession; (“période de réclamation de fin d’année”)

(2) Section 4.3 of the Regulation is amended by adding the following subsection:

(1.1) This section applies with respect to homes, excluding the common elements of a condominium project, with a date of possession that is before May 1, 2024.

5. Section 4.4 of the Regulation is amended by adding the following section:

(1) This section applies with respect to homes, excluding the common elements of a condominium project, with a date of possession that is before May 1, 2024.

6. The Regulation is amended by adding the following sections:

Initial Claims, Mid-Year Claims and Year-End Claims (Date of Possession On or After May 1, 2024)

4.5 (1) This section applies with respect to homes, excluding the common elements of a condominium project, with a date of possession that is on or after May 1, 2024.

(2) For the purposes of this section, the following claim periods are established:

1. The initial claim period, which is the 40-day period beginning on the date of possession.

2. The mid-year claim period, which is the period beginning on the day after the initial claim period ends and ending on the 183rd day after the date of possession.

3. The year-end claim period, which is the period beginning on the day after the mid-year claim period ends and ending on the first anniversary of the date of possession.

(3) In order to make an initial claim, a mid-year claim or a year-end claim, the owner shall complete and submit to the Corporation, during the applicable claim period, the form required by the Corporation for a claim made during that period.

(4) A year-end claim may also be submitted during the period that commences on the day following the end of the year-end claim period and ends on a day 10 days later or, if that day is not a business day, on the next business day, provided that, before the first anniversary of the date of possession, the owner had informed the vendor, in writing, of the claim items that make up the claim using a means of communication used by the owner and vendor to communicate information regarding the home.

(5) During the applicable claim period, the owner may, for a home, submit one or more claim forms of the type required for the applicable claim period or amend such a claim form.

(6) If an owner makes an initial claim, a mid-year claim or a year-end claim, the following process applies:

1. If the owner submits more than one claim form for a home or amends a claim form during the applicable claim period, the Corporation shall consolidate the claim items into a consolidated claim form and make the consolidated claim form available to the owner and the vendor as soon as reasonably possible following the end of the applicable claim period.

2. Subject to paragraph 4, the vendor shall have until the end of the repair period to repair or resolve the claim items listed on the claim form that are covered by the warranty, the repair period being a period of 120 days that,

i. in the case of an initial claim, begins on the 42nd day after the date of possession and ends on the 162nd day after the date of possession,

ii. in the case of a mid-year claim, begins on the184th day after the date of possession and ends on the 304th day after the date of possession, or

iii. in the case of a year-end claim, begins on the day after the first anniversary of the date of possession and ends on the 486th day after the date of possession.

3. The owner may request a conciliation by contacting the Corporation at any time during the period that,

i. in the case of an initial claim, begins on the 42nd day after the date of possession and ends on the last day of the mid-year claim period,

ii. in the case of a mid-year claim, begins on the184th day after the date of possession and ends on the last day of the year-end claim period, or

iii. in the case of a year-end claim, begins on the 366th day after the date of possession and ends on the 516th day after the date of possession.

4. If the owner requests a conciliation in accordance with paragraph 3, the vendor shall have an additional 30 days to repair or resolve the items listed on the claim that are covered under warranty, and this 30-day period begins on,

i. the day after the applicable repair period under paragraph 2 ends, if the conciliation was requested during that repair period, or

ii. the day on which the conciliation was requested, if the conciliation was requested after the applicable repair period.

5. The Corporation shall not conduct a conciliation inspection as part of a conciliation request until the 30-day period referred to in paragraph 4 has expired.

6. If the owner does not request a conciliation in accordance with paragraph 3 or cancels a conciliation requested in accordance with that paragraph, the owner is deemed to have withdrawn all claim items listed on the claim form submitted by the owner or on the consolidated claim form prepared by the Corporation, as the case may be.

(7) If the owner is deemed to have withdrawn any claim items under paragraph 6 of subsection (6), the owner may resubmit the claim items under this section during a subsequent claim period under subsection (2), if there is one, by using the claim form required for that claim period, or in accordance with section 4.5.1 or 4.6, provided that,

(a) the warranty period applicable to the claim item has not expired before the date of the resubmission; and

(b) the item has not already been assessed and that assessment communicated in a conciliation assessment report.  

(8) Subject to subsection (9), an owner who is the owner of a unit in a residential condominium conversion project and who receives money from the pre-existing elements fund shall, before spending any of the money on the pre-existing elements of the unit in accordance with the expected major repair schedule for the project during the initial period,

(a) if so spending the money could be the subject of a claim under subsection 14 (3) of the Act, make a claim on the claim form required for the applicable claim period in respect of the pre-existing elements of the unit and comply with the process specified in this Regulation for making the claim; and

(b) give the vendor in relation to the project and the Corporation the opportunity to inspect the condition of the pre-existing elements of the unit that are the subject of the claim before any work is done on them.

(9) Subsection (8) does not apply to major repairs to pre-existing elements that are not covered by the warranty described in subclause 13 (1) (a) (i) of the Act by virtue of subsection 17.2 (2) of the Act.

(10) An owner who does not comply with subsection (8) shall be deemed to have waived any right to make a warranty claim or to receive compensation from the guarantee fund in respect of the pre-existing elements of the unit.

Second-Year Claims (Date of Possession On or After May 1, 2024)

4.5.1 (1) This section applies with respect to homes, excluding the common elements of a condominium project, with a date of possession that is on or after May 1, 2024.

(2) In order to make a warranty claim during the second-year claim period, the owner shall complete and submit to the Corporation a second-year form.

(3) If the owner submits a second-year form to the Corporation during the second-year claim period,

(a) the Corporation shall advise the vendor that the form has been received and provide a copy of the form to the vendor; and

(b) the vendor shall have until the end of the 120th day after the date on which the vendor receives the form to repair or resolve the claim items that are listed on the form and that are covered by a warranty.

(4) If the vendor does not repair or resolve all the claim items listed on the second-year form by the 120th day after the date on which the vendor was advised by the Corporation of the receipt of the form, the owner may request a conciliation by contacting the Corporation at any time during the period beginning on the 121st day and ending on the 160th day after the date on which the vendor was advised by the Corporation of the receipt of the form.

(5) If the owner requests a conciliation in accordance with subsection (4), the vendor shall have an additional 30 days after the date of the owner’s request to repair or resolve the claim items listed on the second-year form that are covered by a warranty. 

(6) The Corporation shall not conduct a conciliation inspection as part of a conciliation requested in accordance with subsection (4) until the 30-day period referred to in subsection (5) has expired.

(7) If the owner does not request a conciliation in accordance with subsection (4) or if the owner cancels the conciliation requested in accordance with that subsection, the owner is deemed to have withdrawn all claim items listed on the second-year form.

(8) If the owner is deemed to have withdrawn any claim items listed on the second-year form under subsection (7), the owner may resubmit the items in accordance with this section or section 4.6, provided that,

(a) the warranty period applicable to the claim item has not expired before the date of resubmission; and

(b) the item has not already been assessed and that assessment communicated in a conciliation assessment report. 

(9) Subject to subsection (10), an owner who is the owner of a unit in a residential condominium conversion project and who receives money from the pre-existing elements fund shall, before spending any of the money on the pre-existing elements of the unit in accordance with the expected major repair schedule for the project during the initial period,

(a) if so spending the money could be the subject of a claim under subsection 14 (3) of the Act, make a claim on a second-year form in respect of the pre-existing elements of the unit and comply with the process specified in this Regulation for making the claim; and

(b) give the vendor in relation to the project and the Corporation the opportunity to inspect the condition of the pre-existing elements of the unit that are the subject of the claim before any work is done on them.

(10) Subsection (9) does not apply to major repairs to pre-existing elements that are not covered by the warranty described in subclause 13 (1) (a) (i) of the Act by virtue of subsection 17.2 (2) of the Act.

(11) An owner who does not comply with subsection (8) shall be deemed to have waived any right to make a warranty claim or to receive compensation from the guarantee fund in respect of the pre-existing elements of the unit.

7. Subsection 5 (3) of the Regulation is revoked.

8. Subsection 5.1 (1) of the Regulation is amended by,

(a) striking out “subsection 5 (2)” and substituting “subsection 5 (1)”; and

(b) adding “but before July 1, 2023” at the end.

9. The Regulation is amended by adding the following section:

5.1.1 (1) This section applies, and subsection 5 (1) does not apply, to all homes, excluding the common elements of a condominium project, with a date of possession that is on or after July 1, 2023.

(2) If the owner requests a conciliation in accordance with section 4.2, 4.3, 4.4, 4.5 or 4.5.1 and pays any required conciliation fee, the Corporation shall,

(a) within 15 days after the day on which both the request and the fee have been received, schedule a date and time for a conciliation inspection; and

(b) carry out a conciliation inspection as soon as reasonably possible after the expiry of the additional 30-day period accorded to the vendor under the applicable section to repair or resolve the claim items that are covered by a warranty.

(3) After conducting a conciliation inspection as part of a conciliation requested under section 4.2, 4.3, 4.4, 4.5 or 4.5.1, the Corporation shall provide the owner and the vendor with a conciliation assessment report within 30 days after the date of the inspection.

(4) Despite subsection (3), if circumstances beyond the reasonable control of the Corporation result in the Corporation being unable to provide the owner and the vendor with a conciliation assessment report within the 30-day timeline described in that subsection, the Corporation shall,

(a) within that timeline, provide the owner and the vendor with a report as to the status of the warranty assessment and the reasons for the delay in the delivery of the conciliation assessment report; and

(b) provide the conciliation assessment report as soon as reasonably possible in the circumstances after having provided the status report.

(5) The vendor shall have a further 30 days from the date on which the conciliation assessment report is issued to, in respect of warranted claim items set out in the conciliation report, complete necessary repairs, pay compensation or otherwise resolve the claim items in accordance with the Act and the regulations.

(6) If the vendor fails to resolve a warranted claim as required by subsection (5), the Corporation shall pay compensation out of the guarantee fund to the owner, perform or arrange for the performance of necessary repairs or otherwise resolve the warranted claim items in accordance with the Act and regulations.

10. Subsection 5.5 (7) of the Regulation is amended by striking out “conduct a conciliation and issue to the owner and the vendor a report setting out the Corporation’s assessment of whether the claim items are covered by a warranty” at the end and substituting “conduct a conciliation inspection and, as soon as reasonably possible after conducting the inspection, issue to the owner and the vendor a conciliation assessment report”.

11. Subsections 5.5 (8) and (9) of the Regulation are amended by striking out “the report” wherever it appears and substituting in each case “the conciliation assessment report”.

12. (1) Subsection 5.6 (7) of the Regulation is amended by striking out “conduct a conciliation and issue to the owner and the vendor a report setting out the Corporation’s assessment of whether the claim items are covered by a warranty” at the end and substituting “conduct a conciliation inspection and, as soon as reasonably possible after conducting the conciliation inspection, issue to the owner and the vendor a conciliation assessment report”.

(2) Subsections 5.6 (8) and (9) of the Regulation are amended by striking out “the report” wherever it appears and substituting in each case “the conciliation assessment report”.

13. Subsection 5.7 (3) of the Regulation is revoked and the following substituted:

(3) If the owner submits a major structural defect form to the Corporation under subsection (1) during the major structural defect claim period, the Corporation shall, as soon as reasonably possible after receiving the form, conduct a conciliation inspection and issue to the owner and the vendor a conciliation assessment report.

14. (1) Subsection 5.9 (8) of the Regulation is revoked and the following substituted:

(8) The Corporation shall, as soon as reasonably possible after conducting the conciliation inspection, issue to the owner and the vendor a conciliation assessment report in respect of whether the claim items listed on the form are covered by the major structural defect warranty.

(2) Subsection 5.9 (9) of the Regulation is amended by striking out “the report” in the portion before clause (a) and substituting “the conciliation assessment report”.

15. Section 5.10 of the Regulation is revoked and the following substituted:

5.10 The Corporation may, in its sole discretion, extend or abridge any timelines specified in sections 4.1 to 4.6, 5.1, 5.1.1, 5.2, 5.5 to 5.7 and 5.9 if it determines that,

(a) the vendor is unable or unwilling to address a claim item on a claim form;

(b) a claim item,

(i) involves health and safety, seasonal repairs or an emergency, or

(ii) involves other extraordinary circumstances;

(c) the extension or abridgement would facilitate the resolution of a claim item;

(d) it is reasonable to conclude that conducting conciliation inspections outside the timelines set out in sections 4.2, 4.3, 4.4, 4.5 and 4.5.1 will assist in resolving one or more claim items earlier;

(e) it would be more efficient to consolidate conciliation inspections and conciliation inspections need to be re-scheduled for that purpose; or

(f) the specified time begins in, ends in or spans the period from December 24 of one year to January 1 of the following year, both inclusive.

Commencement

16. (1) Except as otherwise provided in this section, this Regulation comes into force on the day it is filed.

(2) Sections 2 to 15 come into force on the later of July 1, 2023 and the day this Regulation is filed.

Made by:
Pris par :

Tarion Warranty Corporation:
Tarion Warranty Corporation :

Hari Panday

Chairman

Peter Balasubramanian

President & CEO

Date made: April 27, 2023
Pris le : 27 avril 2023

I approve this Regulation.
J’approuve le présent règlement.

Le ministre des Services au public et aux entreprises,

Kaleed Rasheed

Minister of Public and Business Service Delivery

Date approved: June 7, 2023
Approuvé le : 7 juin 2023

 

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