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Warranty Coverage forNew Homes in OntarioWarranty Coverage forNew Homes in OntarioFreehold and Contract Homes EditionThis brochure provides a brief introduction to thewarranty that comes with your new home.For more details about warranty coverage and thewarranty process, please visit Tarion.com.QUESTIONS?ASK US!TARION.COM1-877-982-7466 1

Warranty Coverage forNew Homes in OntarioTable of ContentsYour Builder’s RoleWork and MaterialsYour Role as HomeownerMaking Warranty ClaimsTarion’s RolePre-Delivery InspectionDeposit ProtectionRegister for MyHomeDelayed Closing CoverageFinancial Loss Protectionfor Contract HomesQUESTIONS?ASK US!TARION.COM1-877-982-7466 2

Warranty Coverage forNew Homes in OntarioYour Builder’s RoleThe warranty coverage outlined in this brochure is provided to you byyour builder. Your builder’s responsibilities under the warranty include: Ensuring that your new home is built properly. This meansthat it is constructed in accordance with Ontario’s BuildingCode, is fit for habitation, and is free from defects inworkmanship and materials and major structural defects Providing you with information about your warrantycoverage at the time of purchase Conducting a pre-delivery inspection (PDI) with you, on or before theclosing date and explaining how the various systems in your home work Providing you with a warranty certificate upon your home’s completion,which indicates when your new home warranty takes effect Being reasonably accessible to you to addresscustomer service issues, including investigating issues with yourhome to determine if they are covered by the warranty and, Resolving valid warranty requests in a timely manner by performingrepairs or offering an acceptable alternative resolutionQUESTIONS?ASK US!TARION.COM1-877-982-7466 3

Warranty Coverage forNew Homes in OntarioYour Role as HomeownerAs a new homeowner, you have certain rights, responsibilities andobligations under the new home warranty. These include: Understanding your warranty coverage and the processfor making warranty service requests and claims Participating in the pre-delivery inspection (PDI) bymaking note of incomplete, damaged, or missing items,and learning how to operate your home’s systems Properly maintaining your home in order topreserve your warranty coverage Bringing any warranty service requests to your builder’sattention in writing as soon as possible Providing your builder with reasonable access to your hometo investigate and address warranty service requests If you need warranty assistance from Tarion, ensuring thatyour claim is submitted within the appropriate timelinesQUESTIONS?ASK US!TARION.COM1-877-982-7466 4

Warranty Coverage forNew Homes in OntarioWhat is Tarion?Tarion is a private, not-for-profit consumer protectionorganization established by the Ontario government in 1976 toadminister the province’s new home warranty program.Tarion’s Role:By law, all new homes built in Ontario are provided with a warrantyby the builder. Tarion’s role is to ensure that buyers of newlybuilt homes in Ontario receive the coverage they are entitled tounder their builder’s warranty. Tarion’s responsibilities include: Administering the MyHome online portal, which allows homeowners tomanage their warranty and report defects to the builder and Tarion Facilitating the fair resolution of disputes between homeownersand builders over warranty coverage, repairs or customer service Assessing warranty claims to determine if they are valid either throughan on-site inspection or an alternative method of investigation In cases where a builder fails to address a valid warrantyclaim, resolving the claim directly with the homeowner eitherthrough compensation or repairs by a third party and, Managing a guarantee fund to protect new home buyers,out of which compensation for warranty claims is paidQUESTIONS?ASK US!TARION.COM1-877-982-7466 5

Warranty Coverage forNew Homes in OntarioDeposit ProtectionThe deposit you provide to your builder is protected up to certain limits if: Your builder goes bankrupt Your builder fundamentally breaches your agreement You exercise your right to terminate the agreementDeposit coverage limits are as follows: Purchase price 600,000 or less: 60,000 Purchase price over 600,000: 10% of purchaseprice to a maximum of 100,000This protection includes the money you put downtowards upgrades and other extras.Learn more aboutDeposit ProtectionQUESTIONS?ASK US!TARION.COM1-877-982-7466 6

Warranty Coverage forNew Homes in OntarioDelayed Closing CoverageYour builder guarantees that your home will be ready for you to moveinto either by a date specified in the purchase agreement or by a datethat has been properly extended if circumstances occur that delay thehome’s completion.For information about your closing date and any extensions yourbuilder is allowed, please refer to the Statement of Critical Dates inthe Addendum to your agreement.You may be able to claim up to 7,500 from your builder incompensation for an improper delay in your closing date.Learn more aboutDelayed Closing CoverageQUESTIONS?ASK US!TARION.COM1-877-982-7466 7

Warranty Coverage forNew Homes in OntarioFinancial Loss Protection for Contract HomesA “contract home” refers to a home that is built on land that is alreadyowned by the purchaser. If you enter into a contract with a builderfor the construction of a new home on property that you own, someor all of the money you give your builder may be protected.If your builder fails to substantially perform the contract, youmay be entitled to compensation for the difference betweenthe amount you paid the builder and the value of the work andmaterials that were supplied, up to a maximum of 40,000.Learn moreat Tarion.comQUESTIONS?ASK US!TARION.COM1-877-982-7466 8

Warranty Coverage forNew Homes in OntarioWatch theHome Warranty Basicsvideo seriesWork & MaterialsThe warranty on work andmaterials lasts for seven yearsfrom the date you take possessionof your new home, and providesup to a maximum of 300,000in coverage. It is divided intothree coverages as follows:123ONE-YEAR WARRANTY Requires that your homeis built properly and freefrom defects in materials4 Ensures your home isfit for habitation Protects against OntarioBuilding Code violations567YearsQUESTIONS?ASK US!TARION.COM1-877-982-7466 9

Warranty Coverage forNew Homes in OntarioWork & Materials(Continued)1TWO-YEAR WARRANTY Protects against waterpenetration through thebasement or foundation walls Protects against defects inmaterials, including windows,doors and caulking, ordefects in work that resultin water penetration intothe building envelope Covers defects in work ormaterials in the electrical,plumbing, and heating deliveryand distribution systems Covers defects in work ormaterials that result in thedetachment, displacement,or deterioration of exteriorcladding (such as brick work,aluminum, or vinyl siding) Protects against OntarioBuilding Code violations thataffect health and safetyQUESTIONS?ASK US!TARION.COMWatch theHome Warranty Basicsvideo series1-877-982-7466 234567Years10

Warranty Coverage forNew Homes in OntarioWork & Materials(Continued)Watch theHome Warranty Basicsvideo series1SEVEN-YEAR WARRANTYProvides coverage against majorstructural defects. These include: Defects in work or materialsthat affect a structural loadbearing element of the home,resulting in a structural failure,or that could materially andadversely compromise thehome’s structural integrity Defects in work or materialsthat materially and adverselyaffect the use of a significantportion of the home234567YearsQUESTIONS?ASK US!TARION.COM1-877-982-7466 11

Warranty Coverage forNew Homes in OntarioMaking a Warranty ClaimAs the provider of the warranty, your builderis responsible for resolving warranty claimsdirectly with you. You must notify them whenan issue arises and give them an opportunity toreview it and address it. As part of this process,you will need to provide the builder access toyour home to make any necessary repairs.If your builder fails to resolve your claim, ordoes not feel that the item is warranted, thatis when Tarion can help. We can assess yourclaim and, if warrantable, ensure that the issueis resolved. However, to be eligible for Tarion’sassistance, you must report your warranty claimwithin the relevant warranty timeframe.Tarion’s MyHome online portal is an easy-to-useand convenient way to manage your warrantyclaims. MyHome notifies you of important warrantytimelines, lets you submit warranty claims to bothyour builder and Tarion simultaneously, and allowsyou to request Tarion’s assistance if you need it.We recommend that you register for MyHome assoon as you take possession of your new home.QUESTIONS?ASK US!TARION.COM1-877-982-7466 12

Warranty Coverage forNew Homes in OntarioMaking a Warranty Claim (Continued)Your builder is responsible for resolving your claim items that arewarranted regardless of whether you ask for Tarion’s help.There are other possible ways to get your warranty claims resolved otherthan through Tarion. These include the civil court system, the small claimscourt system, or through private arbitration or mediation (this is separatefrom mediation offered through Tarion). The alternative resolution methodsavailable to you may depend on what you and your builder agree to.If you choose to resolve your warranty claim through alternativemethods such as those mentioned above, you should ensurethat you have complied with warranty timing requirements.We also recommend that you seek legal advice.tyrranWaQUESTIONS?ASK US!TARION.COM1-877-982-7466 mClai13

Warranty Coverage forNew Homes in OntarioYour Pre-DeliveryInspection (PDI)Before you take possession of yournew home, your builder is required toconduct a pre-delivery inspection, alsoknown as a PDI.The main purpose of the PDI is tomake a note of items in your home thatare damaged, missing, incomplete, ornot working properly. Your builder willinclude these items on a PDI Form, andgive you a copy for your records.Download Tarion'sPDI Checklist hereDownload Tarion'sPDI Checklist hereThe PDI is also an opportunity to learnabout how to operate and maintain partsof your home, such as the ventilation,plumbing, and heating systems.Your builder is required to address anyitems noted on your PDI Form that arecovered under the warranty as soon aspossible. If necessary, you can ask Tarionfor assistance in getting these itemsresolved. For more information on howto make a warranty claim to Tarion, visitTarion.com.QUESTIONS?ASK US!TARION.COM1-877-982-7466 14

Warranty Coverage forNew Homes in OntarioImportant Next Steps1. Visit Tarion.com to learn moreabout your warranty coverageand the process for gettingwarranty assistance, as well asyour rights, responsibilities, andobligations as a new homeowner.Register forMyHome!2. Prepare for your Pre-DeliveryInspection. Visit Tarion.com forhelpful resources, including a PDIChecklist and educational videos.3. Register for MyHome right afteryou take possession. MyHomeis an online service that allowsnew homeowners to requestwarranty assistance from Tarion.MyHomeUsernamePasswordForgot PasswordNew User? Register NowSIGN INBy signing in you agree to theseTerms and Conditions.Version 2.0QUESTIONS?ASK US!TARION.COM1-877-982-7466 15

To learn more about how Tarionbackstops your builder’s warranty andprotects your new home, you can:Head to our websiteVisit our YouTube channelEmail us at customerservice@tarion.comCall us at 1-877-982-7466

Warranty Coverage for New Homes in Ontario QUESTIONS? ASK US! TARION.COM 1-877-982-7466 1 Warranty Coverage for New Homes in Ontario Freehold and Contract Homes Edition This brochure provides a brief introduction to the warranty that comes with your new home. For more details about warranty coverage and the warranty process, please visit Tarion .