If you are buying a newly built home, you are protected by the Ontario New Home Warranty Program. This program offers the new home buyer a number of specific protections and warranties.

THE COVERAGE

1. Your down payment - up to a maximum of $20,000.
2. Delays in closing and occupancy - the builder must give you notice of such delays, otherwise they will have to compensate you up to $100 a day for living expenses, to a maximum of $5,000.
3. Substitutes of key elements, without your consent, including items such as floor finishes, colours and fixtures.

THE WARRANTIES

1. One year warranty against defects in work, materials and Ontario building code violations.
2. Two year warranty 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. Seven year warranty against major structural defects, up to a maximum of $100,000.

WHAT IS NOT COVERED?

1. Defects in items, supplied or installed by the home buyer such as cabinets, floor coverings and paint.
2. Damage to your personal property that is a result of water seepage and structural defects.
3. Normal shrinkage of materials that dry out after construction.
4. Damage resulting from the home buyer's negligence.

On closing, the purchaser completes a certificate of completion and possession, which records the date of possession as well as any requested repairs. The vendor will provide the purchaser with a Warranty Certificate.