Advocacy group seeks increased protection for new-home buyers
 
CAROLYN LEITCH, Globe and Mail, Mar. 23, 2007

A consumer advocacy group is pushing for regulatory changes that would give buyers of new homes in Ontario more power in their disputes with builders.

Canadians for Properly Built Homes is calling on the Government of Ontario to transform Tarion Warranty Corp., the regulator of Ontario's home building industry, into "the consumer protection organization it is intended to be".

Karen Somerville, president of Ottawa-based CPBH, says Tarion is not doing enough to aid and provide information to home buyers who have contract disputes with their builders or complaints about defects in the finished house or condominium.
CPBH proposes that:

• Builders or their representatives be limited to one seat on Tarion's board of directors.
  
  
• At least 50 per cent of Tarion's board members represent Canada-based consumer protection organizations.
  
  
• Tarion appoint a senior vice-president of consumer protection who would be required to approve the rejection of any consumer's request or claim against a builder.
  
  
• The Ontario New Home Warranties Plan Act, which Tarion administers, state explicitly that the primary purpose of the organization is to provide consumer protection.
  
  
• Tarion come under the oversight of the Ombudsman of Ontario.
  
  
• Tarion fall under Ontario's Freedom of Information and Protection of Privacy Act.
  

Robert Mitchell, director of industry and government relations for Tarion, says the organization is aware of CPBH's proposals.

Mr. Mitchell says builders on the board of directors are there because of their expertise, and that it's not uncommon for regulators to have a preponderance of people knowledgeable about the industry on their boards.

As for Ms. Somerville's call for a senior vice-president of consumer protection, he points out that Tarion's vice-president of customer service and call centre employees look into consumer issues. Mr. Mitchell also oversees some complaints.

"Our view is that it's kind of redundant because we already have someone in that role."
Mr. Mitchell believes that problems surrounding privacy would arise if Tarion were to come under freedom of information legislation because builders could uncover data about their competitors and homeowners could seek details about their neighbours.

"We get very sensitive financial information," he says.

Tarion licenses all home and condominium builders. Under provincial legislation, builders must provide purchasers with warranty coverage that is guaranteed by Tarion.