A home warranty can provide considerable peace of mind, whether you are buying a new home or a resale home. There are important things to understand about home warranties, what they cover and how they provide coverage should something go wrong.
In Ontario new home warranties are administered by the Tarion Warranty Corporation with statutory protection for seven years from the original date of possession. This warranty coverage continues with the next buyer if the home is less than seven years old.
Home warranty coverage (for new homes and condominiums) through Tarion does not cover everything so it’s important that you understand the limited warranty coverage, that you are properly enrolled for coverage and that you understand how to make a claim should that be necessary.
The new home warranty is provided by your builder and the builder is the first point of contact to correct anything that is wrong with your new home. Your builder may offer additional warranty protection for items not covered by the statutory Tarion warranty.
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Home sellers may purchase a home warranty on their older home or condo to make it a more attractive purchase for a potential buyer. Generally, these warranties cost between $250 and $750 and cover all major systems in the home such as the central heating system, ductwork, interior plumbing and electrical systems and some home appliances up to a certain age.
Warranty policies and coverage vary so it’s important to do your homework before signing on the dotted line so you know what is covered and you can confidently add this warranty protection to the home sale information package that your real estate professional will use to market your home.
This information is meant as a guide only. Although deemed reliable, information may not be accurate for your specific market or property type. Please consult a REALTOR® professional or home warranty representative for more information home warranty policies.