A family buys a resale house whose original owner took possession from the builder 18 months ago. Water is now leaking through the basement foundation wall. What is the family's warranty position?
Correct Answer
D) The two-year water penetration warranty still applies, because coverage stays with the home after a sale
Regulation 892 s. 14 warrants that there will be no water penetration through the basement or foundation, for claims made in the two-year period ending on the second anniversary of the date of possession. Section 13(5) of the Act makes a warranty enforceable without privity of contract, and Tarion confirms coverage applies from the possession date even if the home is sold, so the family can claim within the two years.
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