Humber/Ontario Real Estate Course 1 Exam Practice

Two months after moving into a newly-constructed home, a buyer finds cracks next to the door frames. What is correct regarding Tarion warranty coverage?

1. These cracks are covered under Tarion's five-year warranty program.

2. This defect must be reported at initial occupancy to be covered.

3. These cracks are covered under the one-year protection provisions.

4. This is a minor defect and not covered under the Tarion warranty program.

5. Only structural issues are covered, excluding cosmetic defects like cracks.

6. Coverage is determined on a case-by-case basis.

The correct answer is: These cracks are covered under the one-year protection provisions.

The correct answer is that these cracks are covered under the one-year protection provisions of the Tarion warranty program. Under Tarion's guidelines, newly constructed homes typically come with a one-year warranty that protects homeowners from defects in materials and workmanship. This coverage ensures that buyers can report issues they discover within the first year of occupancy, including minor defects like cracks next to door frames, which often result from settling or other normal home construction processes. It's important for homeowners to report such defects as soon as they notice them to ensure they can receive the necessary repairs or remedies under the warranty. This reinforces the need for timely reporting to take full advantage of the warranty protections. While the other options contain elements related to warranty coverage, they do not accurately reflect the specific situation described. For example, the five-year warranty primarily covers major structural defects, while minor defects are effectively addressed under the one-year provisions. Not reporting the issue at initial occupancy does not negate coverage; rather, the key is to report it within the specified one-year period. Thus, homeowners should be aware that both minor and major defects can fall under warranty provisions, depending on the timeline and nature of the issue.