Things to think about while you wait
Here’s a story that puts all those other stories about Ontario’s hot housing market into perspective. It demonstrates how fierce the buying competition for newly constructed homes can be. Actually, it’s 30 stories because it involves 30 people who slept in their cars for a chance to buy four new homes.
Yes, you read that right. Thirty people lined up in their cars overnight to buy four new homes.
These are some seriously hardcore homebuyers
Not long ago, a builder put four newly built homes up for sale in a very high-demand neighbourhood in Ontario. Desperate new home buyers rushed to the sales office before the doors opened for a chance to buy their dream homes in their ideal neighbourhood. Perhaps past experience told them that a few hours in advance was not enough, or maybe word got out that these were very in-demand homes. Maybe, some determined spouses issued ultimatums of “don’t come home unless you’ve bought a house!” Whatever the reason, these buyers decided that sleeping in their cars would substantially improve their odds of owning these homes. So they did.
At first, two cars showed up. Then two more. The four drivers got out of their cars and shook hands. They got to know each other. After all, they were going to be neighbours. As they celebrated together, they watched more cars join the line. At first a few more. Then slowly, even more began showing up. In total, about 30 cars lined up overnight for a chance to buy four new homes. The first four drivers texted their families with the good news, then slept happily (but probably uncomfortably) in their cars that night.
Unlucky number four
The next morning, car number one bought a new home. Cars number two and three also bought homes. When it was time for car number four to make the purchase, he found out that the builder had already pre-sold one of the homes. He left empty-handed, along with the long line of other hopeful, sleepy and disappointed buyers who left unrewarded for their effort.
Fierce demand still leads to comprehensive protection
The lucky owners of these four homes began a journey of new home ownership that more than 57,000 other buyers experienced last year in Ontario. That journey starts with the new home warranty. When you buy a newly constructed home or condominium in Ontario, you also receive important and substantial warranty protections. While it’s the builder that provides the warranty, Tarion serves to ensure that the builder delivers on their warranty obligations. If they don’t or are unable to, Tarion works directly with the homeowner to ensure they received the warranty coverage they are entitled to. Under the warranty, buyers receive deposit protection and delay compensation. These protections help homebuyers for issues that occur before they move in – or in the case of deposit protection, if the home never closes.
When you buy a newly constructed home or condominium in Ontario, you also receive important and substantial warranty protections. While it’s the builder that provides the warranty, Tarion serves to ensure that the builder delivers on their warranty obligations.
For homes that do close, every builder should walk through the home with the new owner to conduct a Pre-Delivery Inspection before the keys are handed over. Once buyers take possession, their home is covered under warranty for seven years. The warranty is very comprehensive. In fact, Ontarians enjoy some of the highest protections for new homes in the country.
Here’s the thing – this isn’t a one-off story. New home buyers have spent the night in their cars in other high-demand areas in Ontario. But even though you may decide to take similar extraordinary measures to get the new home that’s right for you, rest assured that you can have some warranty peace of mind once you sign the purchase agreement and put down a deposit. Your builder must provide a warranty, and Tarion is here if your builder doesn’t fulfill his/her warranty obligations.
Find out more about your new home warranty protection at Tarion.com.
Tips for using Tarion:
- Thinking about buying a new home? Do your research! Check out what types of new homes are covered under the mandatory warranty in Ontario.
- Getting ready to sign an Agreement of Purchase and Sale? Read Tarion’s blog on What to Ask Your Real Estate Lawyer When Buying a New Home Part 1 and Part 2.
- Is your Pre-Delivery Inspection coming up? Find out more about your PDI and how to prepare for it.
- Are you a brand new homeowner? Learn more about your warranty coverage.