Ontario to create new home warranty regulator to crack down on conflicts of interest
Tarion Warranty Corporation has overseen the industry for the past 40 years
Ontario has announced changes for new home warranties, including moving oversight for new home builders and vendors away from the corporation that provides the warranties.
Government and Consumer Services Minister Bill Walker says establishing a separate regulator will address a conflict of interest in the current structure.
Tarion Warranty Corporation has overseen nearly all facets of the home building sector for the past 40 years, and a review found fault with its complex structure and overarching mandate, with both builders and homeowners questioning its objectivity.
Walker also says he will explore the feasibility of a multi-provider insurance model for new home warranties.
The government is also planning legislative amendments that will require Tarion to publicly disclose executive and board compensation.
Ontario has further asked Tarion to work with the Condominium Authority of Ontario to better inform people of the potential risks associated with buying pre-construction condominiums.