Tarion Reform – What it means for Ontario Builders

Introduction

The long awaited Final Report of former associate Chief Justice J. Douglas Cunningham's independent review of the Tarion Warranty Program has been released to much enthusiasm as well as some quiet concern. Justice Cunningham was appointed by the Provincial Government in 2015 to conduct an independent review of the Tarion Warranty Program ("Tarion"), which administers the Ontario New Home Warranties Plan. The Final Report is the first step in the Government's response to the growing public scrutiny of Tarion and calls for reform of both the Plan and the Ontario New Home Warranties Plan Act (the "Act") under which it operates.

The Act gives Tarion the exclusive responsibility of enforcing the warranties provided by new homebuilders, along with regulating those same builders. Measures to reform Tarion have been called for by almost all players in the industry, including homeowners and builders, save and except for Tarion itself, which has grown