New home builder Code of Ethics and improved claims processes approved

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ยฉCAN STOCK PHOTO/FEVERPITCHED

Ontario Construction News staff writer

Ontario is getting a newย Code of Ethicsย for builders and vendors of new homes, clarifications to the simplified warranty and protections claims process for defects in new homes, and a mediation process for homeowners who dispute a warranty claim assessment. These changes come into effect on July 1, 2021 and will support a standard of work and professionalism that reflects the best of Ontarioโ€™s homebuilding industry.

Announced today by Ross Romano, Minister of Government and Consumer Services, the new Code of Ethics โ€“ under theย New Home Construction Licensing Act, 2017ย โ€“ will require licensed builders โ€œto operate in a professional manner with honesty, integrity, financial responsibility, and without intimidation or coercionโ€. It also provides theย Home Construction Regulatory Authorityย with a new discipline committee and an appeals committee process to hold bad actors accountable.

โ€œSince taking on overdue changes to this important sector, our number one goal has been to protect homeowners and support ethical practices and top-notch service by homebuilders and vendors,โ€ Romano said. โ€œWe all benefit when we raise the bar for quality new home construction in Ontario and make it easier for buyers and owners to get what they paid for.โ€

Enhancements are also being made toย Tarionโ€™s dispute resolution and new home warranty and protection claims processes to:

  • support a simplified claims process that is easier for consumers
  • improve transparency by requiring Tarion to provide claimants with expert opinions when it issues a warranty assessment report
  • enable homeowners who dispute Tarionโ€™s assessment of their warranty claim to request that Tarion participate in mediation

These steps build on consumer protection improvements including theย Rebuilding Consumer Confidence Act, 2020ย and the designation of theย Home Construction Regulatory Authorityย as the regulator responsible for builders and vendors of new homes.

They are part of Ontarioโ€™s ongoing overhaul of the Ontario new home warranty and protection program and also address the Auditor General of Ontarioโ€™s recommendations in the 2019 Special Audit of the Tarion Warranty Corporation.

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