New home warranty act

The New Home Warranty Act (NHWA) is a law that requires builders to provide a warranty for new homes in Ontario, Canada. The act was introduced in 1983 to protect homebuyers from defects and deficiencies in new homes. Here are some key provisions of the NHWA:

Who is covered?

The NHWA applies to all new homes built in Ontario, including single-family homes, townhouses, and condominiums.

What is covered?

The warranty covers defects and deficiencies in the following areas:

  1. Workmanship and materials
  2. Structural integrity
  3. Plumbing, heating, and electrical systems
  4. Insulation and weatherproofing
  5. Windows and doors
  6. Roofing and exterior finishes

Duration of the warranty

The warranty is valid for a period of two years from the date of possession of the home. During this period, the builder is responsible for repairing or replacing any defects or deficiencies that arise.

Builder's obligations

Under the NHWA, builders are required to:

  1. Provide a written warranty to the homeowner
  2. Maintain a warranty fund to cover repairs and replacements
  3. Respond promptly to warranty claims
  4. Provide a written report to the homeowner detailing the repairs and replacements made

Homeowner's obligations

Homeowners are required to:

  1. Provide written notice to the builder of any defects or deficiencies
  2. Allow the builder access to the home to inspect and repair or replace defects or deficiencies
  3. Cooperate with the builder in the repair or replacement process

Penalties for non-compliance

Builders who fail to comply with the NHWA may be subject to penalties, including fines and imprisonment.

Benefits of the NHWA

The NHWA provides several benefits to homebuyers, including:

  1. Protection from defects and deficiencies
  2. Peace of mind knowing that the builder is responsible for repairs and replacements
  3. A clear process for reporting and resolving warranty claims
  4. A mechanism for holding builders accountable for their work

Overall, the New Home Warranty Act is an important piece of legislation that helps to ensure that new homes in Ontario are built to a high standard and that homebuyers are protected from defects and deficiencies.