NDP MPP: Make Tarion accountable to homebuyers, not developers

This article was last updated on April 16, 2022

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Trinity-Spadina MPP Rosario Marchese today announced a new private member’s bill to be tabled next week that would transform the developer-controlled Tarion Warranty Corporation into a true consumer protection agency,

 

“Tarion’s motto is ‘Protecting Ontario’s new home buyers,’ but instead, too often Tarion fights new home buyers, while protecting builders,” said Marchese. “A new home is the biggest purchase people make, and these consumers deserve protection. But Tarion is not on their side.”

 

New home warranties in Ontario are overseen by Tarion, a private corporation controlled by the Ontario Home Builders’ Association, a construction lobby group. Under its 37-year-old governing legislation, the Ontario New Homes Warranties Plan Act, Tarion is supposed to honour builder warranties when the builder fails to do so, charging back to the builder the cost of repairs.

 

According to Marchese, “Tarion cannot serve consumers while being controlled by the same builders it is supposed to regulate.”

 

Many consumers have filed warranty claims only to wind up in court or the License Appeal Tribunal, fighting not only the builder but Tarion as well. The process is long, expensive and emotionally draining. Even when their case is strong, many consumers just give up.

 

Although Tarion is mainly funded by consumers, directly through separate fees or indirectly through home purchase prices, it is not considered a public agency, and is not subject to normal public oversight, or review by the Ontario Ombudsman or the Auditor-General.

 

“Tarion is a black box,” said Marchese. “It doesn’t have to account for itself in any meaningful way. Under current law, it is literally none of our business whether it actually protects consumers or not.”

 

Marchese says the time has come for Tarion to be made accountable to consumers.

 

“The Ontario New Homes Warranties Plan Act has not been significantly updated in 37 years, despite some tinkering here and there,” said Marchese. “My new bill would change all that, making Tarion a true consumer protection agency that would be accountable to the people of Ontario.”


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