Dara Bowser

The applicant appealed a decision by Tarion Warranty Corporation denying her warranty claim for a defective HVAC system in her new home.

The system failed to adequately heat the lower floors and cool the upper floors, and the air handler frequently locked out.

Tarion argued the equipment was excluded from warranty because it was leased from a third party.

The Licence Appeal Tribunal held that leased equipment supplied by the vendor is not excluded under section 13(2)(a) of the Ontario New Home Warranties Plan Act, as it was not supplied by the owner.

The Tribunal preferred the evidence of the applicant's expert regarding the extent of the defects and the necessary remediation.

The Tribunal allowed the appeal and ordered Tarion to pay the applicant $40,000 in compensation to repair the HVAC system and building envelope to comply with the Ontario Building Code.

The applicants appealed a decision by Tarion Warranty Corporation denying warranty coverage for four issues in their new home: noisy vents, a leaking basement patio door, water ponding on the lakeside patio, and cupping of the hardwood floor.

The Tribunal dismissed the claims regarding the vents and the water ponding, finding that the vents met Building Code requirements and the ponding was caused by subsidence, which is excluded from warranty.

However, the Tribunal allowed the claims for the basement patio door and the hardwood floor cupping.

The Tribunal found that the basement door leaked and should be replaced, similar to the upper patio door.

Regarding the hardwood floor, the Tribunal preferred the evidence of the applicants' experts, finding that the cupping was caused by excessive moisture resulting from defective work and an inadequate HVAC system, rather than improper maintenance or an 'unattended house syndrome.' The Tribunal ordered Tarion to pay $17,069.78 for the patio door and $50,846.44 for the replacement of the hardwood floor.