Tarion Warranty Corporation: Seriously flawed (2007) homeowner satisfaction survey

 Current Issues...National


 

The Issue:
Tarion provides a mandatory warranty program, so consumers have no choice but to pay for this coverage when they purchase a new home in Ontario.  Unfortunately, CPBH hears regularly from dissatisfied new home purchasers, who often found that when they submitted their claims to Tarion, many issues were “unwarranted”. 

In 2007, Tarion conducted a homeowner satisfaction survey.  CPBH considers a homeowner survey an important mechanism to measure the homeowner satisfaction with Tarion, particularly given that Tarion’s fees are mandatory and the market is not allowed to operate in its normal fashion.  However, unfortunately, only 2006 purchasers were allowed to complete this survey.  Many of these homeowners invited to complete the survey had not yet experienced their first year anniversary in their new home.  Many other homeowners have advised CPBH that they did not notice or experience problems with their homes until the second or third year of ownership – in some cases longer. 

CPBH has also heard from many home purchasers who wanted to complete Tarion’s 2007 homeowner survey, but were denied the opportunity as they purchased their homes prior to 2006.  We understand that a number of these homeowners wrote directly to Tarion and/or the Ministry of Government Services requesting that they be allowed to complete this survey.  We understand that all of these homeowner requests were denied by Tarion.

It is also CPBH’s understanding that a previous homeowner survey conducted by Tarion (when it operated under the name of ONHWP) surveyed homeowners who had purchased in the previous five years.  This is a much more appropriate period of time to be used in the sampling methodology.  CPBH understands that the results of that previous ONHWP homeowner survey were quite negative, and that those results were not released to the public.

Canadians for Properly Built Homes’ Position:

  • CPBH’s position is that:
    • the 2007 Tarion homeowner satisfaction survey results are not a fair or accurate representation of Ontario homeowners’ satisfaction, given the flawed approach of only inviting 2006 purchasers to complete the survey and
    • future homeowner satisfaction surveys should use a five year timeframe rather than a one year timeframe. 

What can concerned citizens do?

  • Write to:
    • your Provincial Member of Parliament and/or
    • Mr. Harold Levy, the “consumer advocate” on Tarion’s board of directors at Tarion’s corporate address:  5160 Yonge Street, 12th Floor, Toronto M2N 6L9 and/or
    • Minister Ted McMeekin, the Minister responsible for Tarion and consumer protection generally.  His address is: Minister of Government and Consumer Services, Office of the Minister, 99 Wellesley Street West, Room 4320, Whitney Block, Toronto, ON, M7A 1W3.  His e-mail address is: tmcmeekin.mpp@liberal.ola.org  and/or
    • Premier Dalton McGuinty at Legislative Building, Queen's Park, Toronto, ON, M7A 1A1. His email address is dmcguinty.mpp.co@liberal.ola.org

    and request that any future Tarion homeowner satisfaction surveys include homeowners who have purchased in the previous five years.