New Warranty Coverage for Conversion Condos

Before January 1, 2018, conversion condominium projects had no warranty coverage under the Ontario New Home Warranties Plan Act (ONHWPA) and were limited to the contractual warranties provided by the vendor/builder. However, the ONHWPA has been amended to extend extensive statutory warranty coverage to eligible residential condominium conversion projects (RCCPs) where the first arm's length agreement of purchase and sale was signed on or after January 1, 2018. Conversions from non-residential to residential uses are eligible for warranty coverage, while conversions from rental to condominium are not covered. The vendor/builder must register with Tarion, and a rigorous process is in place for reviewing and approving conversions. The creation of a pre-existing elements fund provides protection for future purchasers and condominium corporations, requiring the vendor/builder to fund a trust escrow account for major repairs to pre-existing elements.