A Glossary Of New Home Warranty Terms
Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of a specific industry’s daily operations, and the home-buying business is no exception.
To help you understand the terms, acronyms, and phrases regularly used when buying a new home, OM Inspections Inc. has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend and communicate your inspection and home warranty needs effectively.
Tarion is the warranty watchdog of the new homes and condos. Tarion does not provide warranty (it does not handle insurance), as the builder does that. Tarion will simply rule in a dispute of what is actually warranted or not.
PDI (Pre Delivery Inspection) used to be a mandatory part of the process of delivering a home and condo. That is why the builder could not have done it past the occupancy date. Nowadays, the COVID-19 pandemic has forced Tarion to change this requirement.
Most builders will conduct the PDI on behalf of you, the purchaser. You will then have the opportunity to conduct your own PDI shortly after occupancy. Documentation and photo proof is a very crucial part of the PDI process for all the parties. As a result, utilizing the expertise of OM Inspections can be a great benefit!
A 30-Day Form or 30D Form is an open document that allows you, the homeowner, to list all of your concerns about the house or condo. The 30D Form will be rejected by Tarion if it is submitted later than thirty days from occupancy. To send this form to Tarion, the homeowners portal, MyHome, is the preferred way to go. It is essential to note that submitting this document does not mean the builder will fix all of your issues. The builder will simply apply their own Customer Service Standards in analyzing the complaints while using Tarion guidelines as the benchmark. At OM Inspection, we are great at writing warranty lists, after all, the way the items are written and presented can be the difference between warranted or not. It can also be the difference between the willingness of the builder to repair it or not.
A Year-End Form is also called YE Form. The rules for the YE Form are precisely the same as the 30D form. Tarion will reject this form if submitted past the first occupancy anniversary. This form can be presented during the twelfth month and can be submitted only once, same as the 30D.
Second Year From
The Second Year From or the 2Y From, unlike the previous forms, is not an open document. This warranty period covers particular issues which are listed on the 2Y form. Also, unlike the earlier forms, there is no restriction on the number of 2Y Forms that can be submitted.
Seven Year Warranty
A Seven Year Warranty is also called a Major Structural Defect (MSD). The MSD warranty will cover only significant issues, which are defined by the inability to use a living space. For example, the collapse of a load-bearing beam, the collapse of a portion of the roof, etc.
If you’re looking for more information about home warranties, reach out to the experts at OM Inspections Inc. We are certified home inspectors in Toronto, ON servicing clients across North York, Richmond Hill, Aurora, Newmarket, Mississauga, Ajax, and the Greater Toronto Areas. Our experienced team makes sure to provide clients with professional, unbiased home and warranty inspections to enable them to make decisions they will cherish for a long time.