A review of consumer protections for owners of new homes is set to get underway.
Retired associate chief justice J. Douglas Cunningham has been appointed to look into Tarion Warranty Corp. and its governing legislation, the Ontario New Home Warranties Plan Act.
Tarion is a private organization that administers the plan and about 50,000 new homes and condos are enrolled in the warranty program annually.
As a past board member of Tarion, I welcome the review and offer my wish list of topics to be considered:
To me, one of the greatest shortfalls in Tarion’s consumer protection is in the area of marketing pre-construction houses and condominiums.
In my view, consumer protection demands that pre-construction homes should be sold only by real estate agents who are licensed, trained, insured and regulated.
Delayed occupancy compensation should be increased to $250 daily from the current $150, and the $7,500 cap should be removed. Builders should be prohibited from forcing buyers to waive their entitlement to the money, and it should be credited to buyers on closing and not paid afterward.
Just one person’s opinion.
Bob Aaron is Toronto real estate lawyer. His Title Page column appears on this blog, Move Smartly, and in The Toronto Star. You can follow Bob on Twitter @bobaaron2 and at his website aaron.ca Email Bob