Two-year warranty claim for water penetration allowed due to poor grading; major structural defect claim dismissed.
The appellants appealed the denial of their two-year warranty and major structural defect (MSD) claims by Tarion Warranty Corporation regarding their newly constructed home.
The Tribunal found a breach of the two-year warranty due to water penetration in the garage caused by deficient lot grading and insufficient waterproofing, ordering the respondent to perform specific repairs.
However, the Tribunal dismissed the MSD claim, finding the appellants failed to prove that high humidity, a foundation crack, and sediment in the weeping tiles resulted in the failure of a structural load-bearing element or materially affected the use of the home.
A preliminary motion by the appellants to anonymize the decision was also denied.
OLATOntario Licence Appeal TribunalAug 6, 2025