Toronto

Ontario to create new home warranty regulator to crack down on conflicts of interest

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.

Tarion Warranty Corporation has overseen the industry for the past 40 years

The Ford government says it will also explore the possibility of multi-provider insurance for new warranties. (Graeme Roy/The Canadian Press)

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.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.