Buying a pre-construction home?
Follow these four key steps to protect your purchase
Shopping for a pre-construction home can feel like a quest for your dream home.
A home is one of life’s biggest investments and it comes with some financial protection through your builder’s warranty—but safeguarding your investment also means doing some important due diligence before signing a purchase agreement.
Check before you buy with these four steps:
Make sure the builder is licensed
By law, a person who builds or sells a new home in Ontario must hold a licence. Check the online Ontario Builder Directory to confirm that your builder is licensed and find out whether there are any regulatory actions against them. If you don’t see your builder’s name listed, consider a different builder.
Confirm all upgrades in writing
Upgrades are typically covered by your builder’s warranty, but only if they’re documented. If you’re requesting upgrades or customizations, make sure they’re described clearly in writing. Get your builder’s signed agreement to any requests.
Review your contract with a real estate lawyer
The purchase agreement is a legal contract between the builder and the home buyer and determines what’s included in the price of your home. This is especially important if you need to make a warranty claim. The agreement also includes important information about how or when the sale may be delayed or terminated. Consult a real estate or condo lawyer to review all the terms and conditions with you.
Know how much of your deposit is protected
Ontario’s new home warranty program protects deposits up to a certain amount, depending on the type and price of the home. Visit Tarion.com to check the maximum coverage for freehold homes and condo units.
As a not-for-profit consumer protection organization, Tarion is here to help you understand your new home warranty and navigate a warranty claim with confidence.
Find more information and practical tips at Tarion.com.