Tarion Program Review – Update

As our readers will know, Tarion is currently under review. See our previous blog posts Tarion is Under Review and Tarion Program Review – Interim Progress Report Released to learn more.

Justice Douglas Cunningham has completed his Interim Progress Report. In my view, the report is excellent – very thorough and well-written.

Justice Cunningham is now seeking additional input before he prepares his final recommendations to the Minister of Government and Consumer Services later this year.

Toward this end, I look forward to participating in a further focus group session, scheduled by Justice Cunningham for the afternoon of October 4, 2016.

Here are my overall comments about the Tarion Warranty Corporation.

I’m primarily concerned about the role of Tarion in the dispute resolution process (respecting construction deficiencies) and in relation to required deficiency repairs.

In my view, Tarion is essentially the insurer for new home builders in Ontario. And I think Tarion should be recognized as such. Therefore, I don’t have any particular problem with the make-up of the Tarion Board, or with Tarion passing by-laws and otherwise setting warranty coverage and handling the regulation of builders (all under the oversight of the province). My view is that Tarion should be recognized as fulfilling these functions in its role as insurer. And as an insurer, Tarion can certainly be involved in the dispute resolution process, but it should not be the decision-maker in the dispute resolution process. Furthermore, Tarion (and the builder) should not be deciding on required repairs without direction from an independent expert who is looking out for the best interests of the “home and the homeowner”.

For more information about the Tarion Warranty Corporation, contact us.

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