O. Reg. 2/03: ADMINISTRATION OF THE PLAN

filed January 8, 2003 under Ontario New Home Warranties Plan Act, R.S.O. 1990, c. O.31

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ONTARIO regulation 2/03

made under the

Ontario new home warranties plan act

Made: November 28, 2002
Filed: January 8, 2003
Printed in The Ontario Gazette: January 25, 2003

Amending Reg. 892 of R.R.O. 1990

(Administration of the Plan)

Note: Since the end of 2001, Regulation 892 has been amended by Ontario Regulation 142/02. Previous amendments are listed in the Table of Regulations published in The Ontario Gazette dated January 19, 2002.

1. Subsections 6 (1) and (2) of Regulation 892 of the Revised Regulations of Ontario, 1990 are revoked and the following substituted:

(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.

(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.

(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.

2. This Regulation comes into force on February 1, 2003.

Ontario New Home Warranty Program:

Gregory W. Gee

President and CEO

Alex J. Natters

Vice President Finance

Confirmed by the members in accordance with the Corporations Act on November 28, 2002.