Your Rights under the Ontario New Home Warranty Program (ONHWP).
How does it work?

Every builder must, by law, be registered. Check registration numbers and the ONHWP rating by calling your local ONHWP office.

Each home is enrolled after a permit is issued. In a condo situation both the common elements and the individual units have separate registrations. Make sure all of these are in place before closing.

So what does ONHWP cover you for?

Your deposit is protected up to $20,000 ONLY!! What this means is that if your builder goes broke and you have given more than $20,000 in deposits, the excess is lost. So be careful on those long, long, long closings.

Your condo unit is covered from the date you take possession and completed your Certificate of Completion and Possession (CPP) to a maximum of $100,000. Common elements are covered only after registration of the Declaration to a maximum of $50,000/unit to a gross of not more than $2,500,000. You are basically covered on homes enrolled after 1/1/91 for two years for listed minor defects and seven years for major structural defects.

What about delays?

Big problem, especially these days. I have recently seen a number of Agreements of Purchase and Sale that have different notice provisions than those contained in the warranty program. You should be aware that if the builder is late and does not give the proper notice they can be liable for compensation to the tune of up to $100 per day in out-of-pocket expenses to a maximum of $5,000.

What are the notice periods?

In condominiums there are a few wrinkles. Here they are:

1. Confirmed and Tentative Occupancy Dates:

The tentative date is an estimate of occupancy. The confirmed date is the date you take possession. Every Agreement needs to document one or the other. If your Agreement does not, don't sign. It you have a tentative date there must be something that happens to trigger the confirmed date and you have to get a notice no later than 120 days before the confirmed date that documents that you now have a confirmed date, but in any event no later than 30 days after the completion of roof assembly. To really confuse you, in the event you don't receive notice of the confirmed date 90 days before the tentative date is reached, the tentative date becomes the confirmed date.

2. Delays

Major and minor. On a major delay, where your closing will be delayed more than 15 days the builder must give you notice of the delay at least 65 days before the closing date and give you a new date. The builder can extend once only, without your permission to a total of 120 days. On a minor delay the builder need only give you 35 days notice of a delay of less than 15 days. Your builder is also entitled to 5 days grace in all circumstances.

Then the big choice comes, your builder has sent all the right notices, extended the 120 days and says, I need more time. It is now up to you. You can terminate and get back your deposit, without interest, or you can extend again. Remember the choice is yours.