Strengthening Consumer Protection for Owners of Newly Built Homes

NEWS March 28, 2017

Ontario has released the final report from the Honourable John Douglas Cunningham, QC, on

the Ontario New Home Warranties Plan Act and the Tarion Warranty Corporation, and will

move forward with the recommendations to further protect owners of newly built homes

across the province.


Minister of Government and Consumer Services Tracy MacCharles made the announcement

today at the Empire Club of Canada in Toronto. To improve consumer protection,

accountability, transparency and board governance, Ontario will:

 Make the dispute resolution process easier for homeowners if they discover a problem

in the construction of their new home — for example, a homeowner does not have to

prove the cause of a defect

 Separate the provider of the new home warranty program from the new home builders

regulator to increase consumer confidence

 Give government responsibility in making rules and setting standards and introducing

modern oversight measures to improve accountability and transparency

 Immediately ask Tarion to introduce new deposit protection measures to better reflect

today’s home prices and deposit requirements

The actions announced today will not increase the price that Ontarians pay for a new home.

Strengthening consumer protection is part of our plan to create jobs, grow the economy, and

help people in their everyday lives.




“Our government is committed to protecting what is for most people the largest investment

they will make in their lifetime — the purchase of a newly built home. Our plan strengthens

consumer protection and the consumer experience so people in Ontario can make this

purchase with confidence. We know that the affordability of housing is something that is top of

mind for people across the province, which is why our government is reviewing all options to

make it more affordable. We will be sharing more information on our plan in the weeks to

come. Making it easier and more affordable for the people of Ontario to purchase a newly built

home is part of our larger plan to be a leader in consumer protection.”

— Tracy MacCharles, Minister of Government and Consumer Services


The Ontario Government has appointed a former associate chief justice of the Ontario

Superior Court to review the Ontario New Home Warranties Plan Act and the Tarion

Warranty Corporation. Our Government is committed to consumer protection and to support

a fair, transparent and competitive marketplace where businesses can thrive. The number

of new homes in Brampton has expanded over the last several years and will provide

comfort to new homeowners. Tarion has made significant improvements in the last few

years in how it offers the warranty program, including a builder registry, greater disclosure

and changes to the board.

— Harinder Malhi, MPP, Brampton-Springdale



 In 2015, the Honourable John Douglas Cunningham completed a comprehensive review of

the Ontario New Home Warranties Plan Act and the Tarion Warranty Corporation to

identify opportunities to improve consumer protection measures, meeting with over 200

individuals — homeowners and industry professionals — from across Ontario.

 The Tarion Warranty Corporation or Tarion oversees the warranty program for newly built

homes in Ontario as well as regulating new homebuilders in the province.

 New homes built for resale or under contract with an owner must be enrolled in the home

warranty program and builders and vendors must be registered with Tarion.

 In 2015, more than 57,000 new homes were enrolled in the warranty program — 40 per

cent of which were condominium units.

Harinder Malhi, MPP

Brampton-SpringdaleNews Release


 How Ontario is improving consumer protection for owners of newly built homes

 What to know before buying a new home

 Consumer rights in Ontario

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