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Ontario New Home Warranties Plan Act

R.R.O. 1990, REGULATION 892

ADMINISTRATION OF THE PLAN

Consolidation Period: From July 1, 2013 to the e-Laws currency date.

Last amendment: O. Reg. 204/13.

This is the English version of a bilingual regulation.

CONTENTS

   

Sections

PART I

INTERPRETATION

1

PART II

THE PLAN

 
 

Enrolment of Homes in the Plan

1.1

 

Delivery of Documents

2

 

Certificates of Completion and Possession

3

PART II.1

CLAIMS

 
 

Claims — Not Condominium Common Elements

4-4.1

 

Initial Claims

4.2

 

Year-End Claims

4.3

 

Second-Year Claims

4.4-4.5

 

Major Structural Defect Claims — Years 3 through 7

4.6

 

Conciliation of Disputes

5-5.1

 

Claims — Condominium Common Elements

5.2-5.3, 5.4

 

Condominium Common Elements — First-Year Claims

5.5

 

Condominium Common Elements — Second-Year Claims

5.6

 

Condominium Common Elements — Major Structural Defect Claims

5.7

 

Condominium Common Elements — Conciliation of Disputes

5.8

 

Post June 30, 2012 Homes — Major Structural Defect Claims — Years 3 through 7

5.9

 

General

5.10-5.11

 

Limits of Liability

6

 

Guarantee Fund

7-8.1

PART III

REGISTRATION

 
 

Application for Registration

9

 

Renewal of Registration

10-11., 12

PART V

SUBROGATION

13

PART VI

WARRANTIES

 
 

Water Penetration

14

 

General

15-17

 

Substitutions

18-19.1

 

Eligibility

20-24

Schedule A

 
     

PART I
INTERPRETATION

1. In this Regulation,

“building” means, in respect of a post June 30, 2012 home, the principal structure in which one or more residential dwellings are located, including in the case of condominiums, common element facilities, but excluding in all cases any structure or appurtenance used in connection with a dwelling such as a fence, deck, sauna, swimming pool, spa, antenna, canopy, patio, sidewalk, driveway, utility shed or storage tank; (“bâtiment”)

“business day” means any day other than Saturday, Sunday or a holiday; (“jour ouvrable”)

“certificate of completion and possession” means the certificate required by subsection 13 (3) of the Act; (“certificat d’achèvement et de prise de possession”)

“common elements” of any condominium project has the meaning ascribed by the Condominium Act, 1998; (“parties communes”)

“conciliation” means a process whereby the Corporation determines whether a disputed item listed on a notice of claim given to the Corporation under this Regulation, including section 4 or any of sections 4.2 to 4.6, is covered by a warranty and whether repairs or compensation are required; (“conciliation”)

“condominium corporation” means, in respect of any condominium project, the corporation created or continued under the Condominium Act, 1998; (“association condominiale”)

“condominium project” means the lands and interests appurtenant thereto that are described or proposed to be described in any description required by the Condominium Act, 1998 and which include or are proposed to include units to be used as homes; (“projet condominial”)

“construction contract” means an agreement between a builder and an owner of land which provides for the construction of a home on the land; (“contrat de construction”)

“contracted home” means a home constructed pursuant to a construction contract; (“logement sur contrat”)

“Corporation” means Tarion Warranty Corporation; (“Société”)

“co-share arrangement” means an arrangement, in respect of a major structural defect claim made under the Act in respect of a condominium project or a home, under which a registrant who is the vendor of the project or the home, as the case may be, agrees in writing to pay the Corporation,

(a) the least of the following amounts if the claim involves common elements of a condominium project:

(i) the cost to the Corporation of resolving all major structural defect claims in respect of the common elements of the project,

(ii) 5 per cent of the aggregate sale price of all homes in the project,

(iii) $750,000,

(iv) the maximum amount payable on the claim as a result of any other liability cap set out under the Act, or

(b) the least of the following amounts if the claim involves a home but does not involve common elements:

(i) the cost to the Corporation of resolving all major structural defect claims in respect of the home,

(ii) 5 per cent of the sale price of the home,

(iii) $300,000,

(iv) the maximum amount payable on the claim as a result of any other liability cap set out under the Act; (“accord de partage des coûts”)

“date of possession” means the date on which the home is completed for possession by an owner as specified in the applicable certificate of completion and possession; (“date de prise de possession”)

“date of registration” means the date on which the declaration and description required by the Condominium Act, 1998 are registered in the proper land registry office in respect of a condominium project; (“date d’enregistrement”)

“date of transfer” means the date on which deposits are applied on account of the purchase price payable under a purchase agreement with respect to a home; (“date de transfert”)

“deposit receipt” means a receipt executed by the Corporation, with provision for execution by the vendor and the purchaser, confirming to the purchaser the benefits of the Plan in respect of the purchase agreement; (“récépissé de dépôt”)

“deposits” means, in respect of a home, all money received before the date of possession by or on behalf of the vendor from a purchaser on account of the purchase price payable under a purchase agreement, and, in the case of a condominium dwelling unit, includes money received by or on behalf of the vendor after the date of possession and prior to the date of transfer but does not include money,

(a) paid under the purchase agreement as rent or as an occupancy charge and not part of the purchase price, or

(b) specified in the purchase agreement as money paid under subsection 80 (4) of the Condominium Act, 1998; (“dépôts”)

“initial claim period” means the following period with respect to a warranty claim with respect to a home:

1. The 30-day period beginning immediately after the date of possession, if the home has a date of possession on or after October 1, 2003 and before September 1, 2005.

2. The 31-day period beginning immediately after the date of possession, if the home has a date of possession on or after September 1, 2005; (“période de réclamation initiale”)

“insurers” means the insurers for the time being under any contract or contracts of insurance establishing the guarantee fund; (“assureurs”)

“interest” means the interest at the rate or rates prescribed under the Condominium Act, 1998 required to be paid by the vendor on deposits; (“intérêt”)

“major structural defect” means,

(a) in respect of a post June 30, 2012 home, any defect in work or materials in respect of a building, including a crack, distortion or displacement of a structural load-bearing element of the building, if it,

(i) results in failure of a structural load-bearing element of the building,

(ii) materially and adversely affects the ability of a structural load-bearing element of the building to carry, bear and resist applicable structural loads for the usual and ordinary service life of the element, or

(iii) materially and adversely affects the use of a significant portion of the building for usual and ordinary purposes of a residential dwelling and having regard to any specific use provisions set out in the purchase agreement for the home, or

(b) in respect of a home that is enrolled after December 31, 1990 and that is not a post June 30, 2012 home, any defect in work or materials, including any defect that results in significant damage due to soil movement, major cracks in basement walls, collapse or serious distortion of joints or roof structure and chemical failure of materials, if the defect,

(i) results in failure of the load-bearing portion of any building or materially and adversely affects its load-bearing function, or

(ii) materially and adversely affects the use of such building for the purpose for which it was intended,

but does not include any defect attributable in whole or in part to a Year 2000 compliance problem, flood damage, dampness not arising from failure of a load-bearing portion of the building, damage to drains or services, damage to finishes, malicious damage or damage arising from acts of God, acts of the owners or their tenants, licensees or invitees, acts of civil or military authorities or acts of war, riot, insurrection or civil commotion; (“vice de construction important”)

“major structural defect claim period” means,

(a) the period beginning immediately after the date of possession and ending on the seventh anniversary of the date of possession, in the case of a warranty claim made under section 4.6, or

(b) the period beginning immediately after the registration date of the declaration and description for the condominium project and ending on the seventh anniversary of the registration date, in the case of a warranty claim made under section 5.7; (“période de réclamation pour vice de construction important”)

“major structural defect form” means,

(a) the form that the Corporation requires for a claim made under subsection 14 (4) of the Act for a home, in the case of a warranty claim made under section 4.6 of this Regulation, or

(b) the form that the Corporation requires for a warranty claim that an owner makes in respect of the common elements of a condominium project and submits to the Corporation under subsection 14 (4) of the Act, in the case of a warranty claim made under section 5.7 of this Regulation; (“formule relative aux vices de construction importants”)

“post June 30, 2012 home” means,

(a) in the case of a home of a type not described in clause (c) of the definition of “home” in section 1 of the Act, a home where the parties signed the purchase agreement or the construction contract on or after July 1, 2012, and

(b) in the case of a home of a type described in clause (c) of the definition of “home” in section 1 of the Act, a home where the first arm’s length purchase agreement for a home in the condominium project was signed on or after July 1, 2012; (“logement postérieur au 30 juin 2012”)

“pre-delivery inspection date” means the date, on or before the date of possession, on which the vendor and either one or both of the purchaser and the purchaser’s designate conduct an inspection of the home; (“date de l’inspection préalable à la prise de possession”)

“principal” of any corporate applicant or registrant means a person who beneficially owns, directly or indirectly, more than 10 per cent of its outstanding voting shares; (“actionnaire principal”)

“purchase agreement” means an agreement between a vendor and any person providing for the purchase by such person of a home; (“convention d’achat”)

“purchaser” means a person who enters into a purchase agreement with a vendor for the purchase of a home and includes an assignee of the purchaser’s interest in a purchase agreement; (“acheteur”)

“second-year claim period” means,

(a) the period beginning immediately after the first anniversary of the date of possession and ending on the second anniversary of the date of possession, in the case of a warranty claim made under section 4.4, or

(b) the period beginning immediately after the first anniversary of the registration date of the declaration and description for the condominium project and ending on the second anniversary of the registration date, in the case of a warranty claim made under section 5.6; (“période de réclamation de deuxième année”)

“second-year form” means,

(a) the form that the Corporation requires for a warranty claim that an owner submits to the Corporation during the second-year claim period, in the case of a warranty claim made under section 4.4, or

(b) the form that the Corporation requires for a warranty claim that an owner makes in respect of the common elements of a condominium project and submits to the Corporation during the second-year claim period, in the case of a warranty claim made under section 5.6; (“formule de réclamation de deuxième année”)

“soil movement” means subsidence, expansion or lateral movement of the soil not caused by flood, earthquake, act of God or any other cause beyond the reasonable control of the builder; (“mouvement du sol”)

“structural load-bearing element” means a structural portion or component of a building that is subjected to or designed to carry loads, excluding wind or earthquake loads, in addition to the weight of all permanent structural and non-structural components of the building; (“élément structural porteur”)

“warranty certificate” means, in respect of any home or the common elements of any condominium project, the warranty certificate to be issued by the Corporation to the owner or condominium corporation, confirming the warranties provided for in section 13 of the Act; (“certificat de garantie”)

“warranty claim” means a claim for breach of warranty under subsection 14 (3) or (4) of the Act; (“réclamation au titre de la garantie”)

“warranty period”, for a warranty described in subsection 13 (1) of the Act, means the period beginning on the date on which the warranty takes effect under subsection 13 (3) or section 15 of the Act and ending on the date that the warranty expires; (“période de garantie”)

“Year 2000 compliance problem” means a problem that results from,

(a) a value for the current date that causes an interruption in operation, degradation in performance, change in functionality or misrepresentation of information,

(b) data-based processing that does not behave consistently for dates prior to, during and after the year 2000,

(c) data calculations involving either a single century or multiple centuries that cause an abnormal ending or generate incorrect results, or

(d) failure to recognize the year 2000, or any year divisible by four, as a leap year. (“problème de conformité à l’an 2000”)

“year-end claim period” means the following period with respect to a warranty claim with respect to a home:

1. The 30-day period ending on the first anniversary of the date of possession, if the home has a date of possession on or after October 1, 2003 and before September 1, 2005.

2. The 31-day period ending on the first anniversary of the date of possession, if the home has a date of possession on or after September 1, 2005; (“période de réclamation de fin d’année”) R.R.O. 1990, Reg. 892, s. 1; O. Reg. 430/99, s. 1; O. Reg. 138/01, s. 1; O. Reg. 142/02, s. 1; O. Reg. 320/03, s. 1; O. Reg. 32/05, s. 1; O. Reg. 483/05, s. 1; O. Reg. 9/09, s. 1; O. Reg. 274/10, s. 1; O. Reg. 87/12, s. 1.

PART II
THE PLAN

Enrolment of Homes in the Plan

1.1 (1) Forthwith upon the issue of a building permit authorizing the construction of a home, other than a condominium dwelling unit, but including a contracted home, the builder shall enrol the home in the Plan by submitting to the Registrar a completed enrolment form as provided by the Corporation together with the enrolment fee set out in Schedule A. O. Reg. 274/10, s. 2.

(2) Not less than 30 days before the commencement of construction of a condominium project, the builder shall enrol the condominium project and each unit of it in the Plan by submitting to the Registrar a completed enrolment form as provided by the Corporation together with the enrolment fee set out in Schedule A. O. Reg. 274/10, s. 2.

(3) Upon the sale by a vendor of any home, including a contracted home, the builder shall provide to the Corporation confirmation in the prescribed form of the final sale price, to enable the Corporation to confirm or adjust the enrolment fee paid under subsection (1) or (2), as the case may be. O. Reg. 274/10, s. 2.

(4) Subject to subsection (5), if a builder has enrolled in the Plan a home, construction of which has not been commenced or which has been commenced but which is not fit for habitation, and if the home is acquired from the builder by a vendor, by way of conveyance, foreclosure or otherwise, it shall be re-enrolled in the Plan by submitting to the Corporation a completed enrolment fee set out in Schedule A. O. Reg. 274/10, s. 2.

(5) If a home referred to in subsection (4) vests in a trustee in bankruptcy, it shall be re-enrolled only if it was or is subject to a purchase agreement and if the Corporation has paid or is liable to make a payment to the purchaser under subsection 14 (1) of the Act. O. Reg. 274/10, s. 2.

Delivery of Documents

2. (1) In connection with the sale or construction of a home, the requirements for the delivery of documents under the Plan are as follows:

1. In the case of a condominium project, promptly following the provision of the required security acceptable to the Corporation and the enrolment of the common elements of the condominium project, the Corporation shall, upon request by the registrant, deliver to the registrant a deposit receipt for every dwelling unit for which security was provided.

2. On the date of possession, the vendor shall deliver to the owner a combined certificate of completion and possession and warranty certificate.

3. In the case of a condominium project that qualifies for warranty coverage on the common elements under the Act, on or promptly following the date of registration of the condominium corporation, the vendor shall deliver to the condominium corporation a combined certificate of completion and possession and warranty certificate for the common elements.

4. For every home with a date of possession on or after October 1, 2003, the vendor shall deliver to the purchaser, on or before the pre-delivery inspection date, the most current edition of the document entitled Homeowner Information Package published by the Corporation, which edition applies to the home.

5. For every home with a date of possession on or after October 1, 2003, the vendor shall, on the pre-delivery inspection date, complete and sign a certificate of completion and possession form and a pre-delivery inspection form approved by the Corporation and deliver a copy of the completed and signed forms to the purchaser.

6. Within 15 days from the date of possession of each home sold by a vendor, the vendor shall submit to the Corporation the completed and signed certificate of completion and possession form mentioned in paragraph 5.

7. Upon the request of the owner or the Corporation, the vendor shall provide to the owner and the Corporation a completed and signed copy of the pre-delivery inspection form mentioned in paragraph 5. O. Reg. 142/02, s. 2; O. Reg. 320/03, s. 2; O. Reg. 172/09, s. 1; O. Reg. 204/13, s. 1 (1).

(2) The vendor may satisfy the requirement described in paragraph 4 of subsection (1) by providing a URL link, URI link or other similar Internet link approved and designated by the Corporation to the applicable edition of the document entitled Homeowner Information Package on the Corporation’s website, in an electronic mail to the purchaser’s address for electronic mail set out in the purchase agreement or otherwise confirmed in writing by the purchaser. O. Reg. 204/13, s. 1 (2).

Certificates of Completion and Possession

3. (1) When, pursuant to a purchase agreement or construction contract, a home is completed for possession by the owner, the vendor or builder shall complete and execute the form of certificate of completion and possession required by the Corporation setting forth the date of possession and the name of the builder (if other than the vendor), identifying any surface defects in work and materials not accepted by the owner and listing any unfinished work. R.R.O. 1990, Reg. 892, s. 3 (1); O. Reg. 142/02, s. 3 (1).

(2) In the case of a condominium project that qualifies for warranty coverage on the common elements under the Act, the vendor shall similarly complete and execute the form of certificate of completion and possession required by the Corporation for the common elements, setting forth the date of registration, identifying any surface defects in work and materials in respect of the common elements not accepted by the condominium corporation and listing any unfinished work required in connection with the common elements. R.R.O. 1990, Reg. 892, s. 3 (2); O. Reg. 142/02, s. 3 (2).

PART II.1
CLAIMS

Claims — Not Condominium Common Elements

4. (1) Each person with a claim under the Plan shall give written notice of the claim to the Corporation in the format that the Corporation specifies. R.R.O. 1990, Reg. 892, s. 4 (1); O. Reg. 483/05, s. 2 (1).

(2) Forthwith upon receipt by the Corporation of such notice, the Corporation shall furnish or make available to the claimant with such forms as it or the insurers may reasonably require for the purpose of establishing and verifying the claimant’s loss. R.R.O. 1990, Reg. 892, s. 4 (2); O. Reg. 483/05, s. 2 (2).

(3) Revoked: O. Reg. 483/05, s. 2 (3).

(4) Promptly after receipt by the Corporation of all information reasonably required to be furnished to it in respect of the claim and after determination of any disputes between the claimant and the vendor as to the liability of the vendor, the Corporation shall serve notice of its decision under section 14 of the Act. R.R.O. 1990, Reg. 892, s. 4 (4).

(5) Claims or conciliations for delayed closing or delayed occupancy made under Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act for all homes with a date of possession on or after May 1, 2004 shall be made in accordance with the administrative procedures for delayed closing or delayed occupancy published by the Corporation. O. Reg. 117/04, s. 1; O. Reg. 166/08, s. 1.

(6) The fees payable by the vendor in connection with conciliations for delayed closing or delayed occupancy made under Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act for all homes with a date of possession on or after May 1, 2004 are as set out in Schedule A. O. Reg. 117/04, s. 1; O. Reg. 166/08, s. 1; O. Reg. 172/09, s. 2.

4.1 (1) Subsections 4 (1) and (2), this section and sections 4.2 to 4.6 apply, and subsections 4 (4), (5) and (6) do not apply, to all claims made in respect of homes with a date of possession on or after October 1, 2003, excluding,

(a) claims made in respect of the common elements of a condominium project; and

(b) claims for delayed closing or delayed occupancy made under Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act in respect of homes with a date of possession on or after May 1, 2004. O. Reg. 117/04, s. 2 (1); O. Reg. 483/05, s. 3 (1); O. Reg. 166/08, s. 1.

(2) Revoked: O. Reg. 9/09, s. 2 (1).

(3) During the first year of the warranty period, the owner shall submit to the Corporation a warranty claim only within one or both of the following time periods:

1. The initial claim period.

2. The year-end claim period. O. Reg. 320/03, s. 3; O. Reg. 483/05, s. 3 (2); O. Reg. 9/09, s. 2 (2).

(4)-(7) Revoked: O. Reg. 87/12, s. 2.

(8) Submission by regular mail is effective on,

(a) the post-mark date if the Corporation receives it within 10 days of the expiry of the period during which this section or any of sections 4.2 to 4.6 permit the submission; or

(b) the date that the Corporation receives it, otherwise. O. Reg. 483/05, s. 3 (4).

(9) Revoked: O. Reg. 274/10, s. 4.

Initial Claims

4.2 (1) In this section,

“initial claim form” means the form that the Corporation requires for a warranty claim that an owner submits to the Corporation during the initial claim period. O. Reg. 9/09, s. 3 (1).

(2) In order to make a warranty claim during the initial claim period, the owner shall complete and submit to the Corporation an initial claim form. O. Reg. 9/09, s. 3 (1).

(3) An owner may submit only one initial claim form for a home. O. Reg. 9/09, s. 3 (1).

(4) If the owner submits more than one initial claim form for a home, the only one of those forms that shall be effective for the purpose of the Act and the regulations shall be,

(a) the first form that the owner submits, if the home has a date of possession on or after October 1, 2003 and before September 1, 2005;

(b) the first form that the Corporation receives, if the home has a date of possession on or after September 1, 2005. O. Reg. 483/05, s. 4 (3); O. Reg. 9/09, s. 3 (2).

(5) Subject to subsection (6) and section 5.1, if a home has a date of possession on or after October 1, 2003 and before September 1, 2005 and if an owner submits an initial claim form with respect to the home to the Corporation during the initial claim period, the vendor shall have until the end of the 150th day after the date on which the Corporation receives the form to repair or resolve the claim items that are listed on the form and that are covered by a warranty. O. Reg. 9/09, s. 3 (3).

(6) If the vendor does not repair or resolve all of the claim items listed on the initial claim form mentioned in subsection (5) by the end of the 120th day after the date on which the Corporation receives the form, the owner may request a conciliation by contacting the Corporation at any time from the 121st day to the 150th day, both inclusive, after the date on which the Corporation receives the form. O. Reg. 483/05, s. 4 (3); O. Reg. 9/09, s. 3 (4).

(7) If the owner does not request conciliation under subsection (6) or if the owner cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed on the initial claim form that the vendor does not repair or resolve by the end of the 150th day after the date on which the Corporation receives the form. O. Reg. 483/05, s. 4 (3); O. Reg. 9/09, s. 3 (4).

(8) Subject to subsection (9) and section 5.1, if a home has a date of possession on or after September 1, 2005 and if an owner submits an initial claim form to the Corporation with respect to the home during the initial claim period, the vendor shall have until the end of the 181st day after the date of possession to repair or resolve the claim items that are listed on the form and that are covered by a warranty. O. Reg. 9/09, s. 3 (5).

(9) If the vendor does not repair or resolve all of the claim items listed on the initial claim form mentioned in subsection (8) by the end of the 151st day after the date of possession, the owner may request a conciliation by contacting the Corporation at any time from the 152nd day to the 181st day, both inclusive, after the date of possession. O. Reg. 9/09, s. 3 (5).

(10) If the owner does not request conciliation under subsection (9) or if the owner cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed on the initial claim form that the vendor does not repair or resolve by the end of the 181st day after the date of possession. O. Reg. 9/09, s. 3 (5).

(11) If the owner requests conciliation under subsection (6) or (7), the vendor shall have 30 days after the date of the owner’s request to repair or resolve all of the claim items listed on the initial claim form that are covered by warranty. O. Reg. 483/05, s. 4 (3); O. Reg. 9/09, s. 3 (6).

(12) The owner may resubmit a warranty claim in accordance with section 4.3, 4.4 or 4.6 for any claim item that subsection (7) or (10) deems the owner to have withdrawn, if the warranty period applicable to the claim item has not expired before the date of resubmission. O. Reg. 483/05, s. 4 (3).

Year-End Claims

4.3 (1) In this section,

“year-end form” means the form that the Corporation requires for a warranty claim that an owner submits to the Corporation during the year-end claim period. O. Reg. 483/05, s. 5; O. Reg. 9/09, s. 4.

(2) In order to make a warranty claim during the year-end claim period, the owner shall complete and submit to the Corporation a year-end form. O. Reg. 483/05, s. 5; O. Reg. 9/09, s. 4.

(3) If the home has a date of possession on or after October 1, 2003 and before September 1, 2005 and if the owner submits more than one year-end form under subsection (2), the claim items listed on the last year-end form submitted to the Corporation for the home shall replace the claim items listed on all other year-end forms submitted for the home. O. Reg. 483/05, s. 5.

(4) Subject to subsection (5) and section 5.1, if a home has a date of possession on or after October 1, 2003 and before September 1, 2005 and if an owner submits a year-end form with respect to the home to the Corporation during the year-end claim period, the vendor shall have until the end of the 150th day after the later of the date on which the Corporation receives the form and the day before the first anniversary of the date of possession to repair or resolve the claim items that are listed on the form and that are covered by a warranty. O. Reg. 483/05, s. 5; O. Reg. 9/09, s. 4.

(5) If the vendor does not repair or resolve all of the claim items listed on the year-end form mentioned in subsection (4) by the end of the 120th day after the later of the date on which the Corporation receives the form and the day before the first anniversary of the date of possession, the owner may request a conciliation by contacting the Corporation at any time from the 121st day to the 150th day, both inclusive, after the later of the date on which the Corporation receives the form and the day before the first anniversary of the date of possession. O. Reg. 483/05, s. 5.

(6) If the owner does not request conciliation under subsection (5) or if the owner cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed on the year-end form that the vendor does not repair or resolve by the end of the 150th day after the later of the date on which the Corporation receives the form and the day before the first anniversary of the date of possession. O. Reg. 483/05, s. 5.

(7) If a home has a date of possession on or after September 1, 2005, an owner may submit only one year-end form for the home and only the first year-end form that the Corporation receives for the home shall be effective for the purpose of the Act and the regulations. O. Reg. 483/05, s. 5.

(8) Subject to subsection (9) and section 5.1, if a home has a date of possession on or after September 1, 2005 and if an owner submits a year-end form to the Corporation with respect to the home during the year-end claim period, the vendor shall have until the end of the 150th day after the first anniversary of the date of possession to repair or resolve the claim items that are listed on the form and that are covered by a warranty. O. Reg. 483/05, s. 5; O. Reg. 9/09, s. 4.

(9) If the vendor does not repair or resolve all of the claim items listed on the year-end form mentioned in subsection (7) by the end of the 120th day after the first anniversary of the date of possession, the owner may request a conciliation by contacting the Corporation at any time from the 121st day to the 150th day, both inclusive, after the first anniversary of the date of possession. O. Reg. 483/05, s. 5.

(10) If the owner does not request conciliation under subsection (9) or if the owner cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed on the year-end form that the vendor does not repair or resolve by the end of the 150th day after the first anniversary of the date of possession. O. Reg. 483/05, s. 5.

(11) If the owner requests conciliation under subsection (5) or (9), the vendor shall have 30 days after the date of the owner’s request to repair or resolve all of the claim items listed on the year-end form that are covered by warranty. O. Reg. 483/05, s. 5.

(12) The owner may resubmit a warranty claim in accordance with section 4.4 or 4.6 for any claim item that subsection (6) or (10) deems the owner to have withdrawn, if the warranty period applicable to the claim item has not expired before the date of resubmission. O. Reg. 483/05, s. 5.

Second-Year Claims

4.4 (1) Revoked: O. Reg. 274/10, s. 5.

(2) In order to make a warranty claim during the second-year claim period, the owner shall complete and submit to the Corporation a second-year form. O. Reg. 320/03, s. 3; O. Reg. 9/09, s. 5 (1).

(3) Subject to subsection (4) and section 5.1, if an owner submits a second-year form to the Corporation during the second-year claim period, the vendor shall have until the end of the 150th day from the date on which the Corporation receives the form to repair or resolve the claim items that are listed on the form and that are covered by a warranty. O. Reg. 320/03, s. 3; O. Reg. 483/05, s. 6 (2); O. Reg. 9/09, s. 5 (2).

(4) If the vendor does not repair or resolve all of the claim items listed on the second-year form by the 120th day from the date on which the Corporation receives the form, the owner may request a conciliation by contacting the Corporation at any time between the 121st day and the 150th day, both inclusive, from the date on which the Corporation receives the form. O. Reg. 320/03, s. 3.

(5) If the owner does not request conciliation under subsection (4), or if the owner cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed on the second-year form that the vendor does not repair or resolve by the end of the 150th day after the date on which the Corporation receives the form. O. Reg. 483/05, s. 6 (3).

(6) If the owner requests conciliation under subsection (4), the vendor shall have 30 days after the date of the owner’s request to repair or resolve all of the claim items listed on the second-year form that are covered by warranty. O. Reg. 483/05, s. 6 (3).

(7) The owner may resubmit a warranty claim in accordance with this section or section 4.6 for any claim item that subsection (5) deems the owner to have withdrawn, if the warranty period applicable to the claim item has not expired before the date of resubmission. O. Reg. 483/05, s. 6 (3).

4.5 Revoked: O. Reg. 483/05, s. 7.

Major Structural Defect Claims — Years 3 through 7

4.6 (1) Revoked: O. Reg. 274/10, s. 6.

(2) In order to make a claim under subsection 14 (4) of the Act for a home that is not a post June 30, 2012 home, the owner shall complete and submit to the Corporation a major structural defect form during the major structural defect claim period. O. Reg. 9/09, s. 6; O. Reg. 87/12, s. 3.

(3) After receiving a major structural defect form for a home, the Corporation shall, within the time period specified in subsection (4),

(a) conduct an inspection of the home or an assessment of the claim items listed on the form, without doing an inspection of the home; and

(b) issue to the owner a report setting out the Corporation’s assessment of the claim items listed on the form. O. Reg. 483/05, s. 8; O. Reg. 87/12, s. 3 (2).

(4)  For the purpose of subsection (3), the time period is,

(a) the 10 days after the Corporation receives the major structural defect form, if the home has a date of possession on or after October 1, 2003 and before September 1, 2005; or

(b) the 30 days after the Corporation receives the major structural defect form, if the home has a date of possession on or after September 1, 2005. O. Reg. 483/05, s. 8; O. Reg. 87/12, s. 3 (2).

Conciliation of Disputes

5. (0.1) Section 4 applies, and subsection 5 (2) and section 5.1 do not apply, to claims and conciliations for delayed closing or delayed occupancy made under Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act for all homes with a date of possession on or after May 1, 2004. O. Reg. 117/04, s. 4; O. Reg. 166/08, s. 1.

(1) An owner who requires conciliation of a dispute between the owner and the vendor shall make request therefor to the Corporation and both the owner and the vendor shall each pay to the Corporation the applicable conciliation fee set out in Schedule A. R.R.O. 1990, Reg. 892, s. 5 (1).

(2) Revoked: O. Reg. 483/05, s. 9.

(3) If the Corporation determines that the remedial work will require time to complete, the Corporation shall continue to conduct such inspections of the home as the Corporation considers necessary until the work has been completed. R.R.O. 1990, Reg. 892, s. 5 (3).

(4) If the Corporation determines that the conciliation reveals one or more defects that is covered by a warranty, the Corporation shall refund to the owner the conciliation fee paid by the owner. O. Reg. 172/09, s. 3.

(5) If the Corporation determines that the conciliation should not be chargeable to the vendor, the Corporation shall refund to the vendor the conciliation fee paid by the vendor. O. Reg. 172/09, s. 3.

5.1 (1) This section applies, and subsection 5 (2) does not apply, to all homes, excluding the common elements of a condominium project, with a date of possession on or after October 1, 2003. O. Reg. 320/03, s. 4.

(2) If an owner requests conciliation in accordance with section 4.2, 4.3 or 4.4, the Corporation shall, at any time between the 30th day and the 60th day, both inclusive, from the date of the request for conciliation, conduct a conciliation and issue to the owner and the vendor a report setting out the Corporation’s assessment of whether the claim items are covered by a warranty and the repairs or compensation, if any, required. O. Reg. 320/03, s. 4; O. Reg. 483/05, s. 10.

(3) The vendor shall have a further 30 days from the date on which the report is issued to complete the repairs or pay the compensation required in the report. O. Reg. 320/03, s. 4.

(4) If the vendor does not complete the repairs or pay the compensation, the Corporation shall, subject to subsection 14 (3) of the Act and section 6, pay the compensation out of the guarantee fund to the owner or shall perform or arrange for the performance of the repairs. O. Reg. 320/03, s. 4.

Claims — Condominium Common Elements

5.2 (1) In sections 5.3 to 5.8,

“first-year claim period” means the period beginning immediately after the registration date of the declaration and description for the condominium project and ending on the first anniversary of that date; (“période de réclamation de première année”)

“first-year form” means the form that the Corporation requires for a warranty claim that an owner makes in respect of the common elements of a condominium project and submits to the Corporation during the first-year claim period; (“formule de réclamation de première année”)

“owner” means, in respect of common elements of a condominium project, means the condominium corporation. (“propriétaire”) O. Reg. 274/10, s. 7.

(2) Sections 5.3 to 5.8 apply to warranty claims made in respect of common elements of a condominium project registered on or after July 1, 2010. O. Reg. 274/10, s. 7.

(3) Sections 4 to 5.1 do not apply to warranty claims made in respect of common elements of a condominium project registered on or after July 1, 2010. O. Reg. 274/10, s. 7.

5.3, 5.4 Revoked: O. Reg. 87/12, s. 4.

Condominium Common Elements — First-Year Claims

5.5 (1) In order to make a warranty claim during the first-year claim period in respect of the common elements of a condominium project, the owner shall complete and submit to the Corporation a first-year form. O. Reg. 274/10, s. 7.

(2) An owner may submit one or more first-year forms to the Corporation at any time during the first-year claim period. O. Reg. 274/10, s. 7.

(3) If an owner submits a first-year form to the Corporation during the first-year claim period, the vendor shall have until the end of the 18-month period from the first anniversary of the registration date of the declaration and description for the condominium project to repair or resolve the claim items listed on the form. O. Reg. 274/10, s. 7.

(4) If the vendor does not repair or resolve the claim items listed on the first-year form submitted in accordance with this section by the end of the period specified in subsection (3), the owner may request a conciliation by contacting the Corporation at any time within 60 days after the end of the period specified in that subsection. O. Reg. 274/10, s. 7.

(5) If the owner does not request a conciliation under subsection (4) or if the owner cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed on the first-year form that the vendor does not repair or resolve by the end of the period specified in subsection (3). O. Reg. 274/10, s. 7.

(6) If the owner requests a conciliation under subsection (4), the vendor shall have 90 days from the date of the owner’s request to repair or resolve the claim items listed on the first-year form. O. Reg. 274/10, s. 7.

(7) If an owner requests conciliation under subsection (4) and the vendor does not repair or resolve the claim items within the 90 days from the date of the request, the Corporation shall, at any time between the 91st day and the 150th day, both inclusive, from the date of the request, conduct a conciliation and issue to the owner and the vendor a report setting out the Corporation’s assessment of whether the claim items are covered by a warranty. O. Reg. 274/10, s. 7.

(8) The vendor shall have a further 90 days from the date on which the report is issued to complete the repairs or otherwise resolve all warranted items set out in the report. O. Reg. 274/10, s. 7.

(9) If the vendor does not complete the repairs or otherwise resolve all warranted items set out in the report, the Corporation shall, subject to subsection 14 (3) of the Act and section 6 of this Regulation, pay compensation out of the guarantee fund to the owner or shall perform or arrange for the performance of any required work. O. Reg. 274/10, s. 7.

Condominium Common Elements — Second-Year Claims

5.6 (1) In order to make a warranty claim during the second-year claim period in respect of the common elements of a condominium project, the owner shall complete and submit to the Corporation a second-year form. O. Reg. 274/10, s. 7.

(2) Revoked: O. Reg. 87/12, s. 5.

(3) If an owner submits a second-year form to the Corporation during the second-year claim period, the vendor shall have until the end of the six-month period from the second anniversary of the registration date of the declaration and description for the condominium project to repair or resolve the claim items listed on the form. O. Reg. 274/10, s. 7.

(4) If the vendor does not repair or resolve all of the claim items listed on the second-year form submitted in accordance with this section by the end of the period specified in subsection (3), the owner may request a conciliation by contacting the Corporation at any time within 60 days after the end of the period specified in that subsection. O. Reg. 274/10, s. 7.

(5) If the owner does not request a conciliation under subsection (4) or if the owner cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed on the second-year form that the vendor does not repair or resolve by the end of the period specified in subsection (3). O. Reg. 274/10, s. 7.

(6) If the owner requests a conciliation under subsection (4), the vendor shall have 90 days from the date of the owner’s request to repair or resolve the claim items listed on the second-year form. O. Reg. 274/10, s. 7.

(7) If an owner requests a conciliation under subsection (4) and the vendor does not repair or resolve the claim items within 90 days from the date of the request, the Corporation shall, at any time between the 91st day and the 150th day, both inclusive, from the date of the request, conduct a conciliation and issue to the owner and the vendor a report setting out the Corporation’s assessment of whether the claim items are covered by a warranty. O. Reg. 274/10, s. 7.

(8) The vendor shall have a further 90 days from the date on which the report is issued to complete the repairs or otherwise resolve all warranted items set out in the report. O. Reg. 274/10, s. 7.

(9) If the vendor does not complete the repairs or otherwise resolve all warranted items set out in the report, the Corporation shall, subject to subsection 14 (3) of the Act and section 6 of this Regulation, pay compensation out of the guarantee fund to the owner or shall perform or arrange for the performance of any required work. O. Reg. 274/10, s. 7.

Condominium Common Elements — Major Structural Defect Claims

5.7 (1) In order to make a warranty claim under subsection 14 (4) of the Act in respect of the common elements of a condominium project that does not include any post June 30, 2012 homes, the owner shall complete and submit to the Corporation a major structural defect form during the major structural defect claim period. O. Reg. 274/10, s. 7; O. Reg. 87/12, s. 6 (1).

(2) Revoked: O. Reg. 87/12, s. 6 (2).

(3) If an owner submits a major structural defect form to the Corporation under subsection (1) during the major structural defect claim period, the Corporation shall conduct a conciliation and issue to the owner a report setting out the Corporation’s assessment of whether the claim items listed on the form are covered by the major structural defect warranty. O. Reg. 274/10, s. 7.

Condominium Common Elements — Conciliation of Disputes

5.8 (1) In connection with a warranty claim made in respect of common elements of a condominium project under section 5.5 or 5.6, the Corporation may, at any time, conduct a conciliation if the Corporation determines that the parties are not acting reasonably to resolve the items listed on the first-year form or the second-year form, as the case may be, that the owner submits to the Corporation. O. Reg. 274/10, s. 7.

(2) If the Corporation conducts a conciliation in accordance with any of sections 5.5, 5.6, 5.7 or this section, the vendor and owner shall each pay to the Corporation the applicable conciliation fee set out in Schedule A. O. Reg. 274/10, s. 7.

(3) If the Corporation determines that the conciliation reveals one or more defects that is covered by a warranty, the Corporation shall refund to the owner the conciliation fee paid by the owner. O. Reg. 274/10, s. 7.

(4) If the Corporation determines that the conciliation should not be chargeable to the vendor, the Corporation shall refund to the vendor the conciliation fee paid by the vendor. O. Reg. 274/10, s. 7.

Post June 30, 2012 Homes — Major Structural Defect Claims — Years 3 through 7

5.9 (1) In order to make a major structural defect claim in respect of a post June 30, 2012 home, the owner shall complete and submit to the Corporation a major structural defect form during the major structural defect claim period. O. Reg. 87/12, s. 7.

(2) If an owner submits a major structural defect form to the Corporation during the major structural defect claim period, the vendor shall have until the 90th day from the day on which the Corporation receives the form to repair or resolve the claim items that are listed on the form and that are covered by a warranty. O. Reg. 87/12, s. 7.

(3) If the vendor does not repair or resolve all of the claim items listed on the major structural defect form by the 90th day from the day on which the Corporation receives the form, the owner may request a conciliation by contacting the Corporation at any time from the 91st day to the 120th day after the date on which the Corporation receives the form. O. Reg. 87/12, s. 7.

(4) If the owner does not request a conciliation under subsection (3) or cancels the conciliation requested under that subsection, the owner shall be deemed to have withdrawn all claim items listed in the major structural defect form that the vendor does not repair or resolve by the 90th day from the day on which the Corporation receives the form. O. Reg. 87/12, s. 7.

(5) If the owner requests a conciliation under subsection (3), the Corporation shall schedule a conciliation within a reasonable time after the request is made. O. Reg. 87/12, s. 7.

(6) If the conciliation of the claim requires physical investigation, the owner shall provide reasonable access and co-operation to the Corporation and the vendor to allow the Corporation or any person designated by the Corporation to conduct whatever investigation is reasonably required for the purpose of assessing the claim. O. Reg. 87/12, s. 7.

(7) If the owner does not comply with subsection (6), the Corporation may deny the claim. O. Reg. 87/12, s. 7.

(8) After conducting the conciliation, the Corporation shall issue a report setting out its finding as to whether or not each claim item constitutes a major structural defect and, if so, a recommendation for either compensation or repair. O. Reg. 87/12, s. 7.

(9) Within 10 days from the date the Corporation issues the report described in subsection (8), the vendor shall enter into,

(a) an agreement with the owner and the Corporation under which the vendor undertakes to resolve the defect directly with the owner, either by way of repair or compensation; or

(b) a written co-share arrangement with the Corporation in respect of each claim item. O. Reg. 87/12, s. 7.

(10) The Corporation shall resolve the claim directly with the owner, either by paying compensation out of the guarantee fund to the owner or performing or arranging to perform the required work, if,

(a) the vendor does not comply with subsection (9);

(b) the vendor enters into an agreement described in clause (9) (a) but fails to comply with it and the owner is not in any way responsible for the failure; or

(c) the vendor enters into an arrangement described in clause (9) (b). O. Reg. 87/12, s. 7.

General

5.10 The Corporation may, in its sole discretion, extend or abridge any time specified in sections 4.1 to 4.6, 5.1, 5.2, 5.5 to 5.7 and 5.9 if it determines that,

(a) the vendor is unable or unwilling to repair or resolve the claim items covered by a warranty;

(b) the warranty claim,

(i) relates to items involving health and safety, seasonal repairs or an emergency, or

(ii) involves other extraordinary circumstances; or

(c) the specified times begin in, end in or span the period from December 24 of one year to January 1 of the following year, both inclusive. O. Reg. 87/12, s. 7.

5.11 (1) A person who submits a form to the Corporation under any of sections 4.1 to 4.6, 5.1, 5.2, 5.5 to 5.7 and 5.9 shall submit the form,

(a) by hand, courier or facsimile transmission;

(b) to the Corporation’s designated portal for purchasers on the Internet; or

(c) by regular mail or registered mail except during a general interruption of postal service. O. Reg. 87/12, s. 7.

(2) Submission by hand or courier is effective on the day that the Corporation receives it, if that day is a business day, and otherwise on the next business day. O. Reg. 87/12, s. 7.

(3) Submission by facsimile transmission or to the Corporation’s designated portal for purchasers on the Internet is effective on the day sent, whether it is a business day or not. O. Reg. 87/12, s. 7.

(4) Submission by regular mail is effective on,

(a) the post-mark date if the Corporation receives it within 10 days of the expiry of the period during which the applicable section requires the submission; or

(b) the date that the Corporation receives it, otherwise. O. Reg. 87/12, s. 7.

Limits of Liability

6. (1) In the case of a home of a type referred to in clause (a) or (b) of the definition of “home” in section 1 of the Act, the maximum amount payable to a person out of the guarantee fund in respect of a claim under subsection 14 (1) or (2) of the Act is,

(a) $20,000 in respect of a claim in relation to a purchase agreement, or a construction contract, entered into before February 1, 2003; or

(b) $40,000 in respect of a claim in relation to a purchase agreement, or a construction contract, entered into on or after February 1, 2003. O. Reg. 2/03, s. 1.

(2) In the case of a home that is a condominium dwelling unit, the maximum amount payable to a person out of the guarantee fund in respect of a claim under subsection 14 (1) of the Act is $20,000, plus the amount of interest that has accrued, until the time of payment, on the net principal amount payable out of the guarantee fund in respect of the claim. O. Reg. 2/03, s. 1.

(2.1) In subsection (2),

“net principal amount” means the lesser of,

(a) $20,000, and

(b) the amount of deposit paid by the person to a vendor as a credit towards the purchase price under the contract on closing minus amounts required to be deducted from the deposit amount under subsection 14 (6) of the Act. O. Reg. 2/03, s. 1.

(3) In the case of a home of a type referred to in clause (a) or (b) of the definition of “home” in section 1 of the Act, the maximum amount payable to an owner out of the guarantee fund in respect of a claim made under subsection 14 (3) or 14 (4) of the Act is,

(a) $100,000 if the claim relates to a purchase agreement, or a construction contract, entered into before September 1, 2004 and under which the home has a date of possession before July 1, 2006;

(b) $150,000 if the claim relates to a purchase agreement, or a construction contract, entered into on or after September 1, 2004 and under which the home has a date of possession before July 1, 2006; or

(c) $300,000 if the claim relates to purchase agreement, or a construction contract, under which the home has a date of possession on or after July 1, 2006. O. Reg. 246/04, s. 1 (1); O. Reg. 343/06, s. 1 (1).

(4) In the case of a condominium dwelling unit, the maximum amount payable to an owner out of the guarantee fund in respect of a claim made under subsection 14 (3) or 14 (4) of the Act is,

(a) $100,000 if the claim relates to a purchase agreement, or a construction contract, entered into before September 1, 2004 and under which the condominium dwelling unit, excluding common elements, has a date of possession before July 1, 2006;

(b) $150,000 if the claim relates to a purchase agreement, or a construction contract, entered into on or after September 1, 2004 and under which the condominium dwelling unit, excluding common elements, has a date of possession before July 1, 2006; or

(c) $300,000 if the claim relates to a purchase agreement, or a construction contract, under which the condominium dwelling unit, excluding common elements, has a date of possession on or after July 1, 2006. O. Reg. 246/04, s. 1 (1); O. Reg. 343/06, s. 1 (2).

(5) A condominium corporation that has a claim under subsection 14 (3) or (4) of the Act with respect to a condominium project is entitled, subject to subsection (8), to be paid out of the guarantee fund the cost of rectification of defective work in respect of the common elements of the condominium project. R.R.O. 1990, Reg. 892, s. 6 (5); O. Reg. 138/01, s. 2 (2).

(6) Liability under subsection (3) or (4) is limited to damage to the home only and liability under subsection (5) is limited to damage to the common elements only and there is no liability for any other damage, direct or indirect. R.R.O. 1990, Reg. 892, s. 6 (6).

(7) Liability in respect of the cost of completion of a home is limited to 2 per cent of the sale price of the home or $5,000, whichever is the greater. R.R.O. 1990, Reg. 892, s. 6 (7).

(8) Subject to subsection (8.1), the maximum amount payable out of the guarantee fund in respect of a claim relating to the common elements of a condominium project is the lesser of,

(a) $2,500,000; or

(b) an amount equal to $50,000 multiplied by the number of condominium dwelling units in the condominium project. O. Reg. 118/91, s. 1 (2); O. Reg. 246/04, s. 1 (2).

(8.1) As part of the maximum amount payable out of the guarantee fund to a condominium corporation under subsection (8), the maximum amount payable in respect of a claim relating to the common elements of a condominium project registered on or after September 1, 2004, for damage caused by environmentally harmful substances or hazards, deleterious substances, mould or any other fungal or bacterial contamination, is the lesser of,

(a) $100,000; or

(b) an amount equal to $2,000 multiplied by the number of condominium dwelling units in the condominium project. O. Reg. 246/04, s. 1 (3).

(9) The limits set out in this section in connection with payments made in respect of a home or in respect of common elements of a condominium project are aggregate total limits for all claims made in respect of the home or common elements of the condominium project and the limits shall be reduced by the amounts of any payments made from the guarantee fund in respect of the home or common elements of the condominium project. O. Reg. 451/09, s. 1.

(10) As part of the maximum amount payable to an owner out of the guarantee fund under subsection (3), (4) or (8), the maximum amount payable in respect of a sewage disposal system is $25,000 per home, in the case of a home that the builder was required to enrol in the Plan after June 30, 1993 and under section 8. O. Reg. 334/93, s. 1.

(11) As part of the maximum amount payable to an owner out of the guarantee fund under subsection (3) or (4), the maximum amount payable in respect of homes sold under purchase agreements, or constructed under construction contracts, entered into on or after September 1, 2004, for damage caused by environmentally harmful substances or hazards, deleterious substances, mould or any other fungal or bacterial contamination, is $15,000 per home. O. Reg. 246/04, s. 1 (3).

(12) Despite anything in this section, in the case of a condominium project, the maximum aggregate amount payable out of the guarantee fund in respect of claims made under subsection 14 (3) or (4) of the Act relating to all homes and common elements in the condominium project is $50,000,000 if the first arm’s length purchase agreement for a home in the condominium project is entered into in good faith on or after July 1, 2010. O. Reg. 275/10, s. 1.

Guarantee Fund

7. (1) The Corporation shall establish and maintain a guarantee fund with a licensed insurer or insurers acceptable to the board of directors under a contract or contracts approved by the board from time to time. R.R.O. 1990, Reg. 892, s. 7 (1).

(2) Under such a contract, the insurers shall agree to indemnify the Corporation for those sums which the Corporation is obligated to pay by reason of settlement of any dispute, judgment, action or claim arising under the Plan during the term of the contract. R.R.O. 1990, Reg. 892, s. 7 (2).

(3) Despite subsections (1) and (2), the Corporation may establish and administer an uninsured fund as part of the guarantee fund and out of which it may pay claims made under the Plan. R.R.O. 1990, Reg. 892, s. 7 (3).

8. Revoked: O. Reg. 274/10, s. 8.

8.1 Revoked: O. Reg. 498/09, s. 1.

PART III
REGISTRATION

Application for Registration

9. (1) Each applicant desiring registration under the Plan shall complete, execute and deliver to the Registrar such form or forms of application as the Registrar may require from time to time. R.R.O. 1990, Reg. 892, s. 9 (1).

(2) The application shall set forth the full name and address of the applicant, the type of business organization of the applicant, the names and addresses of all officers, directors and principals of corporate applicants and of all partners and members of applicants who are partnerships and other unincorporated associations, a brief history of the applicant’s business experience, customer references, particulars of bonding arrangements, an estimate of the number and type of homes expected to be built by the applicant during the twelve months following the date of application, inventories of homes and such other information as the Registrar may reasonably require. R.R.O. 1990, Reg. 892, s. 9 (2).

(3) The applicant shall furnish to the Registrar:

1. An agreement between the applicant and the Corporation providing for the respective rights and obligations of the parties as to the enrolment of homes under the Plan, the performance of work by builders, the sale of homes by vendors and such other matters as the Corporation may reasonably require, such agreement to be in such form as may be required by the Corporation and to be fully completed and executed by the applicant in duplicate.

2. A letter from a bank chartered under the Bank Act (Canada) or from a corporation registered under the Loan and Trust Corporations Act, as to the financial position of the applicant.

3. Financial statements of the applicant and such other information relating to the applicant’s financial affairs as the Registrar may require.

4. Where the applicant is not a builder, evidence satisfactory to the Registrar that the applicant has a continuing agreement or agreements with at least one registrant who is a builder whereby such registrant agrees to perform the work required to meet the warranty obligations of the applicant under the Plan.

4.1 Security for any claim relating to the applicant for any loss, cost or expense paid or payable by the Corporation in such amount and in such form as the Registrar may determine.

5. Such additional documentation related to the application as the Registrar may reasonably require. R.R.O. 1990, Reg. 892, s. 9 (3); O. Reg. 430/99, s. 2 (1).

(4) With each application for registration under the Plan, the applicant shall pay to the Corporation the applicable registration fee set out in Schedule A. O. Reg. 172/09, s. 4.

(4.1) If the applicant proposes to enter into a deposit trust agreement to fulfil the obligation to provide security to the Corporation as required by subparagraph 10.1 i of section 1 of Regulation 894 of the Revised Regulations of Ontario, 1990 (Terms and Conditions of Registration of Builders and Vendors) made under the Act, the applicant shall pay to the Corporation the fee set out in Schedule A with respect to the deposit trust agreement. O. Reg. 172/09, s. 4.

(5) An applicant who fails to comply with the requirements of this section may be refused registration by the Registrar. O. Reg. 430/99, s. 2 (2).

Renewal of Registration

10. (1) Every registration and renewal thereof expires one year after the date it is granted to the registrant. R.R.O. 1990, Reg. 892, s. 10 (1).

(2) Every registrant shall apply for renewal of registration not less than 30 days before the date on which the registration expires, giving full particulars of any change in the facts set forth in the most recent application for registration or renewal of registration on record. O. Reg. 142/02, s. 4.

(2.1) The Registrar may permit an applicant to apply for renewal of registration after the time specified in subsection (2) if the Registrar determines that doing so would not be contrary to the public interest and that the applicant would be entitled to registration under section 7 of the Act if the applicant were applying for registration. O. Reg. 172/09, s. 5 (1).

(3) Every applicant for renewal of registration shall complete, execute and deliver to the Registrar such form or forms of application and such other documentation as the Registrar may provide from time to time. R.R.O. 1990, Reg. 892, s. 10 (3).

(4) With each application for renewal of registration under the Plan, the applicant shall pay to the Corporation the renewal fee set out in Schedule A. O. Reg. 172/09, s. 5 (2).

11., 12 Revoked: (PART IV) O. Reg. 430/99, s. 3.

PART V
SUBROGATION

13. (1) The Corporation shall be subrogated to all rights of recovery of a person to whom payment in respect of a claim has been made out of the guarantee fund under the Act and may maintain an action in its own name or the name of the person against any other person against whom the action lies in respect of such rights of recovery. R.R.O. 1990, Reg. 892, s. 13 (1).

(2) The Corporation is entitled under its rights of recovery to conduct legal proceedings, including an action for damages, the quantum of which shall be limited to the amount paid out of the guarantee fund by the Corporation to the person whose rights are subrogated to the Corporation, including any legal costs, plus all costs incurred by the Corporation in the subrogated action. R.R.O. 1990, Reg. 892, s. 13 (2).

(3) Any amount recovered by the Corporation shall be applied,

(a) first, to payment of costs actually incurred by the Corporation in any action or any related action and in levying execution;

(b) second, to reimbursement of the Corporation for the amount of compensation paid by the Corporation to the person out of the guarantee fund; and

(c) third, the balance, if any, to payment of the person whose rights are subrogated. R.R.O. 1990, Reg. 892, s. 13 (3).

(4) Any settlement or release does not bar the rights of the Corporation unless the Corporation has concurred therewith in writing. R.R.O. 1990, Reg. 892, s. 13 (4).

(5) Any person who has been paid money out of the guarantee fund by the Corporation shall forthwith notify the Corporation of any action that such person has brought against any person who caused or contributed to the damages that resulted in the said payment by the Corporation out of the guarantee fund. R.R.O. 1990, Reg. 892, s. 13 (5).

PART VI
WARRANTIES

Water Penetration

14. (1) Every vendor of a new home warrants to the owner that there will be no water penetration through the basement or foundation of the home. O. Reg. 9/09, s. 7.

(2) The warranty described in subsection (1) applies only in respect of claims made during a two-year warranty period ending on the second anniversary of the date of possession. O. Reg. 9/09, s. 7.

General

15. (1) In this section,

“building envelope” means the wall and roof assemblies that contain the building space, and includes all those elements of the assembly that contribute to the separation of the outdoor and indoor environments so that the indoor environment can be controlled within acceptable limits; (“enveloppe”)

“delivery and distribution systems” include all wires, conduits, pipes, junctions, switches, receptacles and seals, but does not include appliances, fittings and fixtures; (“réseaux de distribution”)

“exterior cladding” means all exterior wall coverings and includes siding and above-grade masonry as required and detailed in the relevant sections of the Ontario Building Code under which the Building Permit was issued. (“habillage extérieur”) R.R.O. 1990, Reg. 892, s. 15 (1).

(2) Every vendor of a new home warrants to the owner,

(a) that the home is constructed in a workmanlike manner and is free from defects in materials including windows, doors and caulking such that the building envelope of the home prevents water penetration;

(b) that the electrical, plumbing and heating delivery and distribution systems are free from defects in material and work;

(c) that all exterior cladding of the home is free from defects in material and work resulting in detachment, displacement or physical deterioration;

(d) that the home is free from violations of the Ontario Building Code regulations under which the Building Permit was issued, affecting health and safety, including but not limited to fire safety, insulation, air and vapour barriers, ventilation, heating and structural adequacy; and

(e) that the home is free of major structural defects. R.R.O. 1990, Reg. 892, s. 15 (2); O. Reg. 697/92, s. 1.

(2.1) A major structural defect claim in respect of a post June 30, 2012 home does not extend to any damages or claims,

(a) in respect of any elevating device as defined in subsection 1 (1) of Ontario Regulation 209/01 (Elevating Devices) made under the Technical Standards and Safety Act, 2000 but does not include the surrounding structure of the building housing the device;

(b) in respect of any appliances that form part of the heating or cooling apparatus, equipment or system, whether for water, air or other substances, including furnaces, air conditioners, chillers and heat recovery ventilators;

(c) resulting from dampness not arising from failure of a structural load-bearing element of the building;

(d) resulting from acts or omissions of an owner, a tenant, a licensee or invitee;

(e) resulting from acts of civil or military authorities or acts of war, riot, insurrection or civil commotion;

(f) resulting from a flood not caused by the vendor or builder; or

(g) resulting from anything to which a warranty does not apply under subsection 13 (2) of the Act. O. Reg. 87/12, s. 8.

(3) The warranties described in subsection (2) apply only in respect of claims made during a two-year warranty period ending on the second anniversary of the date of possession, in respect of homes that were enrolled, or should have been enrolled, after December 31, 1990. O. Reg. 9/09, s. 8.

(4) The warranties described in subsection (2) are prescribed under clause 13 (1) (c) of the Act. R.R.O. 1990, Reg. 892, s. 15 (4).

16. If a home was enrolled after December 31, 1990, the claim for damages because of a major structural defect may be made at any time during the major structural defect claim period. O. Reg. 9/09, s. 9.

17. Revoked: O. Reg. 166/08, s. 2.

Substitutions

18. (1) Every vendor of a new home warrants to the owner that the vendor shall make no substitutions in those items of construction or finishing for which the purchaser is entitled to make selection pursuant to the purchase agreement without the written consent of the purchaser. R.R.O. 1990, Reg. 892, s. 18 (1).

(2) Subsection (1) does not apply where,

(a) the purchaser, having been notified, does not make a selection within thirty days after executing the purchase agreement or within such other time period as may be agreed; or

(b) an item selected under clause (a) is not available and the purchaser does not make a selection within seven days of receiving written notice from the vendor or within such other time period as may be agreed that the item is unavailable. R.R.O. 1990, Reg. 892, s. 18 (2).

(3) Every vendor of a new home warrants to the owner that where the purchaser fails to make a selection under clause (2) (a) or (b) that the vendor will make a selection on the purchaser’s behalf that is of equal or better quality than the original selection as set out in the purchase agreement. R.R.O. 1990, Reg. 892, s. 18 (3).

19. Every vendor of a new home warrants to the purchaser that, where the vendor makes a substitution with respect to an item that is referred to in the purchase agreement that is not an item that is to be selected by the purchaser, the item will be of equal or better quality than the item referred to in the purchase agreement. R.R.O. 1990, Reg. 892, s. 19.

19.1 Revoked: O. Reg. 166/08, s. 3.

Eligibility

20. A claim may be made under subsection 18 (1) or section 19 only where,

(a) the transaction closes; and

(b) the claim is made by an owner during a one-year warranty period ending on the first anniversary of the date of possession. R.R.O. 1990, Reg. 892, s. 20; O. Reg. 166/08, s. 4; O. Reg. 9/09, s. 10.

21. (1) Subject to subsections (2) and (3), for the purposes of section 18, written notice may be given personally or sent by electronic mail, fax, courier or registered mail to the purchaser at the address or contact numbers specified in the purchase agreement or at any replacement address or contact numbers supplied in accordance with the purchase agreement. O. Reg. 166/08, s. 5.

(2) Written notice under section 18 shall not be sent by registered mail if there is a postal stoppage or interruption at the time the notice is sent. O. Reg. 166/08, s. 5.

(3) If written notice under section 18 is sent by registered mail within five days before a postal stoppage or interruption commences or during such a stoppage or interruption, the sending of the notice shall not be effective. O. Reg. 166/08, s. 5.

(4) Written notice given or sent in accordance with this section is deemed to have been given and received,

(a) on the day of delivery or sending, if the notice was given personally or sent by electronic mail or fax and that day is a business day;

(b) on the next business day after the day of delivery or sending, if the notice was given personally or sent by electronic mail or fax and the day of delivery or sending is not a business day;

(c) on the second business day after the day of sending, if sent by courier; and

(d) subject to subsection (3), on the fifth business day after the day of sending, if sent by registered mail. O. Reg. 166/08, s. 5.

22. Revoked: O. Reg. 166/08, s. 6.

23. (1), (2) Revoked: O. Reg. 166/08, s. 7.

(3) The warranties in subsection 18 (1) and section 19 apply to purchase agreements entered into after the 30th day of June, 1988. O. Reg. 117/91, s. 2.

24. Revoked: O. Reg. 166/08, s. 8.

SCHEDULE A

Registration Fees

Amounts in Canadian $

1. (1)

In this paragraph:

 
 

“control” with respect to a person, means the power to direct or significantly influence, either directly or indirectly, the management, policies, or business affairs of the person, whether through the holding of voting interests, or otherwise, as determined by the Registrar; (“contrôle”)

 
 

“re-seller vendor” means a vendor selling a home who is not the original vendor of the home; (“revendeur”)

 
 

“umbrella vendor or builder” means a vendor or builder that controls or is controlled by one or more other vendors or builders. (“groupe vendeur ou constructeur”)

 

      (2)

The fee for registration of a vendor or builder who is not an umbrella vendor or builder or a re-seller vendor is

2,500

      (3)

The fee for registration of a vendor or builder who is an umbrella vendor or builder is

600

      (4)

The fee for registration of a vendor who is a re-seller vendor and not an umbrella vendor or builder is

350

      (5)

The fee payable by a vendor for each deposit trust agreement that the vendor enters into is

500

Renewal of Registration Fees

 

2. (1)

In this paragraph:

 
 

“fast track renewal of registration” means the renewal of the registration of a vendor or builder if the Registrar determines that it is possible to determine the entitlement of the applicant to the renewal under subsection 7 (1) of the Act on an expedited basis; (“renouvellement rapide de l’inscription”)

 
 

“regular renewal of registration” means the renewal of the registration of a vendor or builder that is not a fast track renewal of registration. (“renouvellement ordinaire de l’inscription”)

 

      (2)

The fee for a regular renewal of registration is

500

      (3)

The fee for a fast track renewal of registration is

300

      (4)

If the application for the renewal is made after the time specified in subsection 10 (2) of this Regulation and the Registrar permits the application under subsection 10 (2.1) of this Regulation, the fee for the renewal of registration, in addition to the fee chargeable under subparagraph (2) or (3), is

500

Enrolment and Re-enrolment Fee

 

3. (1)

The enrolment fee for every home of a type referred to in clauses (a), (b) and (c) of the definition of “home” in section 1 of the Act is as follows:

 
 

Sale Price of the Home

Fee

 

$100,000 or less

385

 

over $100,000 up to and including $150,000

430

 

over $150,000 up to and including $200,000

500

 

over $200,000 up to and including $250,000

570

 

over $250,000 up to and including $300,000

640

 

over $300,000 up to and including $350,000

710

 

over $350,000 up to and including $400,000

780

 

over $400,000 up to and including $450,000

850

 

over $450,000 up to and including $500,000

920

 

over $500,000 up to and including $550,000

1,000

 

over $550,000 up to and including $600,000

1,050

 

over $600,000 up to and including $650,000

1,100

 

over $650,000 up to and including $700,000

1,150

 

over $700,000 up to and including $750,000

1,200

 

over $750,000 up to and including $800,000

1,250

 

over $800,000 up to and including $850,000

1,300

 

over $850,000 up to and including $900,000

1,350

 

over $900,000 up to and including $950,000

1,400

 

over $950,000 up to and including $1,000,000

1,450

 

greater than $1,000,000

1,500

      (2)

The sale price of a home referred to in subparagraph (1) is the total value of consideration, directly or indirectly payable by an owner in an agreement of purchase and sale or construction contract, excluding any applicable taxes.

 

      (3)

The re-enrolment fee per home is

50

4.

Revoked: O. Reg. 498/09, s. 2 (2).

Conciliation Fees

 

5.

The fee payable by an owner of a dwelling unit for a conciliation of a dispute under section 5 is,

 
 

    (a) if the request for conciliation is made before July 1, 2009

50

 

    (b) if the request for conciliation is made on or after July 1, 2009

250

6.

The fee payable by a vendor of a dwelling unit for a conciliation of a dispute under section 5 is,

 
 

    (a) if the request for conciliation is made before July 1, 2009,

 
 

      (i) for the first conciliation with respect to each 25 units or fewer sold by the vendor

no fee

 

      (ii) for each conciliation after the first conciliation with respect to each 25 units or fewer sold by the vendor

550

 

    (b) if the request for conciliation is made on or after July 1, 2009

1,000

6.1

The fee payable by a condominium corporation as the owner of common elements for a conciliation of a dispute under any of sections 5.5 to 5.8 is

1,000

6.2

The fee payable by the vendor of common elements for a conciliation of a dispute under any of sections 5.5 to 5.8 is

3,000

Delayed Closing and Delayed Occupancy Fees

 

7. (1)

This paragraph applies to claims for compensation made under section 2 or 3 of Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act for delayed closing or delayed occupancy.

 

      (2)

In this paragraph,

 
 

“delayed occupancy administration fee” means the fee payable by the vendor fixed by the Corporation for a request for conciliation of a claim made under section 2 or 3 of Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act, for every home with a date of possession on or after May 1, 2004, in accordance with the Corporation’s administrative procedures; (“droits en cas de retard d’occupation”)

 
 

“delayed occupancy re-assessment fee” means the fee payable by the vendor fixed by the Corporation for re-assessment of a decision of the Corporation in respect of a claim made under section 2 or 3 of Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act, for every home with a date of possession on or after May 1, 2004, in accordance with the Corporation’s administrative procedures. (“droits de réexamen en cas de retard d’occupation”)

 

      (3)

This paragraph applies, and paragraph 6 of this Schedule does not apply, to all requests for conciliation of a claim made under section 2 or 3 of Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act, for every home with a date of possession on or after May 1, 2004.

 

      (4)

The delayed occupancy administration fee is,

 
 

    (a) for all homes with a date of possession between May 1, 2004 and December 31, 2004, both inclusive

600

 

    (b) for all homes with a date of possession between January 1, 2005 and December 31, 2005, both inclusive

1,200

 

    (c) for all homes with a date of possession on or after January 1, 2006

600

      (5)

The delayed occupancy re-assessment fee, which is non-refundable, is

350

8. (1)

This paragraph applies to claims for compensation made under section 5 or 6 of Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act for delayed closing or delayed occupancy.

 

      (2)

In this paragraph,

 
 

“delayed closing or occupancy administration fee” means the fee payable by the vendor fixed by the Corporation in respect of a claim for compensation made under section 5 or 6 of Ontario Regulation 165/08 (Warranty for Delayed Closing or Delayed Occupancy) made under the Act if a conciliation is needed to settle the claim and if the Corporation pays any part of the claim.

 

      (3)

The delayed closing or occupancy administration fee is

500

O. Reg. 172/09, s. 6; O. Reg. 498/09, s. 2; O. Reg. 274/10, s. 9; O. Reg. 87/12, s. 9.

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