Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following is NOT correct about the Tarion Warranty Program?

1. If a roof leak damages an upper bedroom ceiling, the damaged furniture is not covered.

2. If a seasonal cottage is built, it must be enrolled in the warranty program.

3. If a builder constructs only the shell and the owner completes finishing work, the program does not cover the work.

4. If a home is sold five years after purchase, the warranty balance continues with the home.

5. If a builder constructs a home for a secondary owner, additional coverage may be required.

6. If defects are found in the foundation, they are covered under the program.

The correct answer is: If a seasonal cottage is built, it must be enrolled in the warranty program.

The correct understanding of the Tarion Warranty Program is that it mandates that all new homes, including seasonal cottages, must be enrolled in the warranty program to ensure that they meet certain construction quality standards and provide protection to the homeowners. This requirement supports consumer protection and enhances accountability for builders. Option B asserts that if a seasonal cottage is built, it must be enrolled in the warranty program, which is true. The program's stipulations apply universally to various types of residential construction, ensuring that all new residential buildings, regardless of the usage type, are covered under it. The other selections accurately describe aspects of the Tarion Warranty Program: they discuss what is limited in coverage (such as the furniture being damaged by a roof leak), the exclusions in cases where the owner completes the finishing work, the warranty balance transferring to a new owner, coverage for defects, and scenarios involving additional coverage for secondary owners. Each of these reflects the intricacies of the warranty parameters as established by Tarion. Thus, the assertion that a seasonal cottage must be enrolled in the program stands correct and illustrates the insistence on compliance for consumer protection.