Tarion Dodges Responsibility to Pay Claims for Poor Condo Construction

As the President of my Condo Board, it amazes me how Tarion dodges the responsibility to pay out claims. Here are a few examples:

1. Toxic gases in a new Condo because of a broken furnace? Tarion won’t protect you We discovered toxic levels of CO2 emitting from the furnace in a new 3-year old condo.  Per Enbridge, the residents of this condo could have died from gas poisoning. Tarion’s loop-hole to dodge payment: Because the Builder rented the new home for 1 year before selling it, Tarion said this absolves them and the Builder of any liability. Tarion policies are valid for 7 years, yet when a new home is re-sold, Tarion cancels it; and they wont give you a refund for the unused difference.  Tarion Insurance Policies are not transferable to new unit owners. Why this is dumb Tarion is protecting themselves and the Builder. How? If the Builder builds a low quality house, the Builder can absolve himself of liability by renting the unit for as little as a day. This keeps the Builder from having to make any repairs should they be required. Tarion loves this arrangement because it allows them to walk away from responsibility.  As Tarion’s coverage is a form of pre-paid insurance, it seems self-serving on their part that they can walk away from a policy they forced the customer to buy.

2. Is your balcony falling apart? Is your roof leaking? Tarion won’t cover it Three years after the construction of our condo, the balconies are falling apart and the roof is leaking. One could argue that Tarion’s 7-year structural coverage would protect Owners and Boards from poor building construction. Not so. Tarion’s loop-hole to dodge payment: As Balconies and Roofs are Common Elements, liability and responsibility falls on the Property Manager and Unit Owners. Tarion dodges the bullet again! Why this is dumb  The Common Area is part of the Condominium. After all, one purchases it with the condo and it cannot be separated from the unit. The common area is an extension of the condo. If an Owner purchased home coverage to protect themselves against poor Builder quality, this protection should extend throughout the residential premise. It seems that Tarion likes to use Rinky-dink condition to dodge responsibility. Considering they forced me to buy this insurance, they sure don’t seem to make much effort in protecting my best interest.  Seems like Tarion is acting like a monopoly.

3. Did your builder put in an unreliable HVAC system? Was the installation for your AC or Heater faulty? Tarion won’t cover it In a small building of 24 units, most of our HVAC heating and cooling systems have failed. Inspectors have deemed our units as inadequate, poorly installed and much of the HVAC was not CSA certified at the time of the installation. From day 1, we reported this to Tarion and they did nothing. Problems today include flooding, toxic gas, rust out, back flow, poor electrical performance, etc. Does Tarion care? Does the City of Toronto Care? Does Enbridge? Does the TSSA? None of them do. Tarion’s loop-hole to dodge payment: If it works, even partly, the system is okay by Tarion Why this is dumb Even if there is a consensus among building professionals that your building was poorly built, Tarion will not help you.  Either they will shift the responsibility, do very little, or do nothing at all.   Tarion did nothing for us yet they collected $600 per unit for every new home.   Seems like a cash grab to me.

3 years since we took possession of our condo unit, our Builder continues to ignore the Order to Comply letters set out against him by the City of Toronto. In addition, Enbridge, the TSSA and the City of Toronto have found fault in the Builder’s construction.

Has Tarion helped us a bit? No, No, No.  Not a single pay out or work-order.

The Next time You Buy a Condo:
Don’ t count on Tarion. They tend to pass the buck as a matter of course and they will offer minimal help.

I will also add to not count on any governing bodies to make sure your new condo unit will be of immaculate quality, because no organization really cares that much. The City of Toronto, TSSA, Enbridge, and Tarion, all lack accountability.  They talk a good storm, but they do not deliver. Moreover, no single body can enforce repairs unless it goes to court.   Even then, what are the guarantees?  And legal costs are very expensive.

Canadians like to tout that we have a great legal system and building codes, but this pride is  misplaced. Good building craftsmanship begins with the builder. Building code enforcement is a weak way to insure good home construction quality. Moreover, the Legal system is no longer accessible to common people.  Everyday folks can no longer afford to resolve disputes in court.

Better stick with companies who have a reputation of excellence.

My best advice to anyone buying a condo: pay for a property inspector. Look at the furnace, look at the AC, access the brands for the HVAC systems.  Look to see that the AC compressor is installed in the correct place.  Talk to the Condo Board to get an impression of the issues in your building.  Look at all outstanding repairs.  Know what the monthly heating and cooling costs are for that unit. Pay the extra money to get a detailed inspection. Pay now or possibly pay much more later.

The building our Builder made is a lemon. Should you ever meet Gordon Wong in the GTA or Toronto, stay away and don’t purchase a condo or home from him.