Humber/Ontario Real Estate Course 1 Exam Practice

Regarding Tarion's new home warranty coverage, which statement is correct?

1. Every enrolled home is warranted against all defects for a seven-year period.

2. The warranty period for a new home or condominium unit starts at the point of possession.

3. A Certificate of Completion at Closing is provided when the new home closes and the buyer takes title to the property.

4. The term "vendor" refers to anyone who builds a home.

5. Tarion covers only structural defects in new homes.

6. Coverage includes renovation and remodeling projects.

The correct answer is: The warranty period for a new home or condominium unit starts at the point of possession.

In Tarion's new home warranty coverage, the correct statement is that the warranty period for a new home or condominium unit starts at the point of possession. This means that the coverage provided by Tarion begins when the buyer takes possession of the new home or condominium unit. It is essential to understand this starting point of the warranty period to benefit from the protection and coverage offered by Tarion. Option A is incorrect because not every defect is covered under the warranty for a seven-year period. Only certain categories of defects are covered for specific periods as outlined by Tarion. Option C is incorrect as a Certificate of Completion at Closing is not directly related to Tarion's warranty coverage but rather a document associated with the property transfer process. Option D is incorrect as the term "vendor" typically refers to the seller of real estate rather than just anyone who builds a home. Option E is incorrect because Tarion's coverage extends beyond just structural defects to include other specified types of defects as outlined in their guidelines. Option F is incorrect as Tarion's coverage is specifically tailored for new homes and not for renovation or remodeling projects.