I never thought I’d be interested in consumer protection. I took it for granted. But my own personal experience as a new-home buyer changed me.
If you find construction defects in your new home, it should be a straightforward process to get them fixed. In too many cases, it’s not. The system in many ways seems rigged against the little guy. You can either get angry about this, or get active, and I decided to do the latter.
Two government agencies, Tarion and HCRA, the Home Construction Regulatory Authority, are in charge of new home buyer protection. To influence change, a veteran politician told me you need to make what’s called a deposition to the legislative committee considering new legislation. This is an intimidating task. The presentations are recorded, and presenters must face questions from the committee. Builders have powerful lobby groups to do this, but consumers don’t.
I’ve been doing this volunteer work for the last 16 years. It also includes freelance writing and engaging on social media, being a sounding board and support for new home buyers, and sometimes accompanying them as a friend to court or the tribunal, where it often feels like it’s you against the world.
This is a team effort with other dedicated advocates and home buyers of all ages, from diverse financial backgrounds, education levels, and cultures. When construction defects are not resolved, it’s devastating financially, physically and emotionally. Coming home every day to what you thought was your family’s safe place, to see water infiltration, mould, cracks in basement walls, inadequate heating, is a nightmare for the whole family.
Under Ontario law, new home buyers are entitled to a home free of defects in workmanship and materials, and built according to the Building Code. Government agency Tarion is supposed to ensure builders fulfill their warranty obligations. But often the finger-pointing between the builder, municipal building officials, technical experts, and lawyers leaves the homeowner exhausted and confused, still living in a defective home.
There are many good builders in Ontario, but the bad ones put a dent in the reputation of the industry and can devastate families’ lives for years. We need better protection from the bad apples.
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One experience still stands out as a textbook example of everything that’s wrong with the current system. The home buyers in this case I followed for five years were newlyweds, had two busy professional careers, and were expecting their first child. Their appeal of Tarion’s decision took two years. They used their vacation time, worked nights on their case, paid for expert reports, and managed years of stress which would have destroyed most families. It was gut-wrenching to watch, as they were out-lawyered at every turn. They lost.
They reported more than 100 deficiencies, from defective flooring to water infiltration and mould. Much of it was ruled not warranted, due to Tarion’s interpretation of what warranted means.
They told me the stress and hardship wasn’t worth the resolution they received. They warned many people are still vulnerable to builders who cut corners, or don’t oversee their projects properly, even if consumers have done their research on the HCRA/Tarion Builder Directory and asked for references before buying. Many people who have suffered new home defects won’t speak out in public due to gag orders, or fear of devaluing their home they might have to put up for sale one day.
As politicians continue to push their agenda to build more homes faster, consumer protection and confidence in the new home buying market is key. A good start would be to follow the advice of the independent review of Tarion in 2017, which recommended all builders be insured by licensed warranty providers, and regulated under the Insurance Act, as in B.C. and Alberta.
We need to un-break this faulty system.
— Barbara Captijn is a Consumer Advocate
X: @ReformTarion