Humber/Ontario Real Estate Course 1 Exam Practice

Under what condition does a newly constructed home qualify for coverage under the Tarion new home warranty program?

1. The homeowners hire a Tarion registered builder to construct the exterior and complete the interior themselves.

2. They hire a Tarion registered builder to demolish an existing farmhouse and build on the foundation.

3. They enlist an accredited architect and engineer to develop plans and build the home themselves.

4. They engage a Tarion registered builder who constructs the home through subcontractors.

5. They choose a non-Tarion builder but meet all structural norms.

6. They manage construction with their own resources while following Tarion guidelines.

The correct answer is: They engage a Tarion registered builder who constructs the home through subcontractors.

In order for a newly constructed home to qualify for coverage under the Tarion new home warranty program, the homeowner needs to engage a Tarion registered builder who constructs the home through subcontractors. This is the correct condition because Tarion provides warranty coverage specifically for homes built by registered builders, ensuring that certain standards are met during the construction process. The other options are incorrect because they do not involve hiring a Tarion registered builder or following the guidelines set by Tarion for warranty coverage. Hiring an accredited architect and engineer to develop plans and build the home without a Tarion registered builder (option C) or choosing a non-Tarion builder (option E) would not qualify the home for coverage under the Tarion new home warranty program. Similarly, managing construction with one's own resources while following Tarion guidelines (option F) does not guarantee that the builder is registered with Tarion, which is a key requirement for the warranty program.