Each home is registered in the Ontario New Home Warranty Program. Scarlett Homes has maintain a rating of “excellent” since it received its first rating. You should only purchase a home from a registered builder to ensure that your investment is protected. There are some “rogue builders” that are not licensed to build homes in Ontario. Protect your investment, choose a registered builder. The warranty enrollment fees is paid by the Purchaser in addition to the Purchase Price from the fee structure as set out by the Ontario New Home Warranty Program.

WHEN DOES YOUR COVERAGE BEGIN?

Your deposit insurance coverage begins from the date that you sign your agreement of purchase and sale. The balance of the warranty begins on the date of closing.

WHAT IS COVERED UNDER THE
ONTARIO NEW HOME WARRANTY PLAN?

1. ONE YEAR WORK AND MATERIALS WARRANTY

• Protection from defects in work and materials and is fit to live in.
• Protection from Ontario Building Code violations.
• All warranties from the suppliers and trades are passed on to the Purchasers for the remainder of their coverage. Any claims under these warranties, past the first year, would be made directly with the supplier or manufacturer.

2. TWO YEAR “POWER TRAIN” WARRANTY

• Protection from water seepage through basement walls.
• Protection from defects in work and materials including caulking, windows and doors to prevent water penetration.
• Protection from defects in work and materials in the electrical, plumbing and heating delivery and distribution systems.
• Protection from defects in work and materials which result in the detachment, displacement or deterioration of the exterior cladding.
• Protection from Ontario Building Code’s health and safety provisions.

3. SEVEN YEAR MAJOR STRUCTURAL DEFECT WARRANTY

The structure is insured against major defects that would render the home unusable or inhabitable. This would result in the failure of a load-bearing part of the structure and would also include any defect in work or materials that significantly and adversely affects the use of the building as a home.

$ 100,000 MAXIMUM COVERAGE

The maximum coverage per house is $100,000

4. $ 40,000 DEPOSIT COVERAGE

Your deposit is insured to a maximum of $ 40,000 if the builder cannot or will not complete the home, through no fault of your own.

5. $ 5,000 MAXIMUM DELAY IN CLOSING OR OCCUPANCY

While, all builders strive to build within the original time period, there are occasions when the closing dates can not be met. This can be due to material shortages, skilled trade shortages, strikes, delays caused by homeowners in choosing colour selections, or shortages of materials. This is coverage for reasonable living expenses caused by a delayed closing or occupancy without advance written notice. In order to claim you must close on the original date, and claims are limited to $ 100 per day to a maximum of $ 5,000. You must support your claim with receipts.

The Notice Periods in Brief

• Major delay: At least 65 days written notice prior to the original closing date for a delay exceeding 15 days and up to 120 days.
• Minor delay: At least 35 days written notice prior to the original or extended closing date for a delay of up to 15 days.

Maximum combined delay is 120 days from the closing date or confirmed occupancy date.

There is a five day grace period without penalty.

Exceptions: There is no compensation for delays caused be events beyond the builder’s control such as strikes, fires, civil insurrection, floods or Acts of God.

6. UNAUTHORIZED SUBSTITUTIONS

You are protect against substitutions of key elements in your new home as set out in your agreement of purchase and sale. The builder cannot make major substitutions of materials without prior agreement with the Purchaser, unless the substitutions are of equal or greater value. This is to give the Purchaser the assurance that they will substantially receive what they agreed upon in the contract. If the colour selection that you originally chose is not longer available, you must choose an alternative selection within 7 days, failing which the builders can make the substitution on your behalf. The builder has the right to build the home reverse to the house plan.

WHAT IS NOT COVERED?

It is just as important to know what is not covered under your new home warranty. While most things are covered there are a few instances where your claims will not be allowed.

• Defects in materials, design and work supplied or installed by the homeowner, or by someone directly employed by the homeowner.
• Secondary damage caused by defects in the home. There is no coverage for personal injury or damage to household contents. This is normally covered under your homeowner insurance policy.
• Normal wear and tear.
• Normal shrinkage of materials that dry out after construction.
• Damage resulting from homeowner neglect or improper maintenance.
• Alterations or additions made by the homeowner.
• Settling of soil around the house or along utility lines.
• Damage caused by the homeowner, tenants or guests.
• Damage beyond the builder’s control, caused by an act of God such as floods, wind, lighting. Vandalism after the date of closing is not covered.
• Damage from insects or rodents unless the home does not meet the Ontario Building Code.
• Damage caused by municipal service and other utilities.
• Surface defects in work and materials noted in writing and accepted by the homeowner at the time of possession.
• Temporary or seasonal homes not built on permanent foundations.
• Homes built on preexisting footings or foundations.
• Homes that have been lived in or rented prior to closing.