CPBH - New homes need experts - Buyers must be vigilant, hire inspectors and lawyers when building a home from scratch

New homes need experts

Buyers must be vigilant, hire inspectors and lawyers when building a home from scratch.

Iris Winston, The Ottawa Citizen

Published: Saturday, February 11, 2006

Picture this.

You are ready to move into your new home. The design seems ideal and the neighbourhood is even better. You are settling in, but then problems start to surface.
The heating and ventilation system acts up. Mould builds in the basement. The garage floor sinks. A mass of cracks shows up on the living room walls. The floors creak. The windows do not fit or close properly. The banister is unsteady and the colour of the kitchen cupboards is not the golden oak of the sample upgrade.

The dream is turning into a nightmare.

Some of this happened to Karen Somerville, who is in litigation against the builder of the home she and her husband, Alan Greenberg, bought in August 2000.
Determined to help others avoid similar problems, they founded Canadians for Properly Built Homes (CPBH), a non-profit, volunteer organization. "It's way too late for us, but we wanted to help other Canadians," says Somerville.

At a seminar held earlier this month, participants -- potential new homebuyers, home inspectors, lawyers, city officials, realtors and representatives from Canadian Mortgage and Housing Corp. (CMHC) and Tarion Warranty Corp. -- were told what to look for when buying a new home.

"The first key purchase decision is the choice of builder. It's as important as choosing the home design," said architectural technologist Joe Cottitto, a technical resource officer and building inspector with CMHC.
Learn as much as possible about the builder's reputation, he said. "Walk the neighbourhood. Look at job sites. Knock on doors." Then pay careful attention to details when visiting model homes.

"Jump on the floor to check the quality. Pull out drawers. Notice how the doors and windows fit," he said. "Check details."

Finally, make sure you can have a good working relationship with the builder, he urged. There should be open communication and trust between buyer and builder.
Buyers should also rely on experts to avoid pitfalls.

The Ontario Building Code requires only minimum standards, and this is the only level the municipality can enforce in construction, renovation and demolition, cautioned Arlene Gregoire, the City of Ottawa's director of building services.

"For instance," she said, "the code says a building has to have running water, but it doesn't say that the water has to be potable."

Similarly, new home warranties covered by Tarion have strict limitations and deadlines, said lawyer Nancy Houle, an associate with Nelligan, O'Brien, Payne. "Design defects are not covered by Tarion. Only code defects are covered."

The most effective way for purchasers to protect themselves against potential problems is to work closely with experts, particularly the lawyer and the home inspector that the buyers hire. "Make sure everything is in writing," said Heather Austin-Skaret, a lawyer and partner with Mann & Partners. "The builder is not obligated to deliver anything that is not in writing."

Agreements should include amendments and floor plans. She also recommended getting title insurance and zoning compliance (ensuring that the house complies with municipal requirements and has received an occupancy permit.) Most important, have your lawyer read all documents before signing any contract.

After construction has begun, you should hire a home inspector, says registered home inspector Paul Wilson. "Otherwise there is no one looking at the house as a system." He estimated it costs $2,000 for four inspections during the building process.

"At the end of the day, we're all trying to do the same job -- make sure the buyer gets a quality home. The good builders are committed to building quality. They think about product and service."

BUYER'S CHECK LIST

Decide on price range, design and area.
Choose your builder with care.
Select a lawyer who specializes in real estate.
Have your lawyer review all contracts before you sign.
Hire a home inspector to complete multiphase inspections while the house is under construction.
Understand the role of the municipality and the limitations of any warranty.
Keep careful records and all receipts.
Do not accept the product until you are completely satisfied.

Canadians for Properly Built Homes Incorporated in June 2004, this national, not-for-profit organization is run by volunteers. CPBH works with government and such organizations as Canada Mortgage and Housing Corp. and the Canadian Association of Home and Property Inspectors to increase consumer awareness and protection.Contact CPBH at www.canadiansforproperlybuilthomes.com or by telephone at 613-596-2659.