Auditor general says Tarion home warranty program failed buyers in scathing new report
(The Star Toronto Raptors)

Ontario’s auditor general has issued a scathing report that accuses a provincial agency of failing tens of thousands of new home buyers by putting the interests of builders ahead of consumer protection. Tarion Warranty Corporation regulates new homebuilders and administers the province’s new home warranty program. But Auditor General Bonnie Lysyk found its processes were confusing and costly to home buyers, and that it failed to flag and sanction bad builders. In a special audit released Wednesday, Lysyk issued 32 recommendations to fix the agency’s “restrictive processes,� ranging from improvements to its customer call centre to improving protections for consumers against the cancellation of pre-construction condos.She also called on the province to consider whether there should be a separate body to license and regulate builders, or whether that authority should remain with Tarion.The audit found that 9,700 consumers were denied assistance by Tarion’s warranty program between 2014 and 2018 simply because they failed to submit a form within two 30-day periods allowed by Tarion — the first 30 days and the last 30 days in the year after they took occupancy of their new home.The report said Tarion’s “restrictive processes� have meant waits of up to 18 months to compensate homebuyers for builder defects. If the buyer requests help within the 30-day windows allowed, the builder is supposed to have 180 days to fix the problem. Read more: Province to fast-track settlement of Tarion home warranty claimsIt also found that Tarion’s senior management was rewarded for the agency’s profits, which were reached by minimizing payouts to consumers. It found bonuses of 30 to 60 per cent of executives’ annual salaries were paid out, in an approach more suitable for the private sector than a government-delegated, not-for-profit corporation.Tarion issued a written statement saying it has already enhanced ...