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Protection if you build

Have you decided to build your own home? This can be an exciting and stressful time. As with any purchase of a home, you can save a lot of heartache by talking to your lawyer before signing or agreeing to anything. An agreement of purchase and sale for a new home is usually written by the builder/vendor and is very one sided. For this reason it is important to review it with your lawyer. Everything about the construction should be spelled out, from who will apply for the building permit to the exact type of flooring that will go in the kitchen.

If you have decided to build your new home, a number of protections are available to you through the Ontario New Home Warranty Program. They include the following.
1. You are protected for one year, from defects in work and materials as well as Ontario building code violations.
2. You are protected for two years against water seepage through basement walls, water penetration through caulking, windows and doors as well as defects in the electrical, plumbing and heating systems.
3. You are protected for seven years against major structural defects up to $100,000.
4. Your deposit, up to a maximum of $20,000, is covered.
5. If there is a delay in closing or in occupying your new home, your reasonable living expenses, up to a maximum of $5000 will be covered.

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